Amid a decline in employee bonuses, it’s important for employers to reassess their attraction and retention strategies through channels such as employee feedback, says Martin Fox, managing director at Robert Walters Canada.
According to a recent Robert Walters survey, two-thirds (63 per cent) of professionals said they plan to leave their jobs this year if they don’t receive their expected pay raise, bonus or promotion. Six in 10 (59 per cent) managers said a lack of bonuses will drastically lower morale in the workplace and a third (36 per cent) said they’re concerned that withholding a bonus will spike staff turnover.
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“It’s essential to understand what employees value most, which can be achieved through regular feedback mechanisms like employee engagement surveys, human resources reviews and offboarding interviews. By gathering this feedback, employers can identify common themes and address them effectively.
Among employees who said they’d leave their current role if they don’t receive a bonus, a quarter (27 per cent) said they’d be willing to move for the same amount of money, with nearly half (47%) stating they would ‘take less’ so long as their new organization gave them more purpose, recognition in their hard work or flexibility.
“For example, offering additional vacation days, being more flexible with working hours or providing opportunities for personal development can be very impactful. . . . Developing a clear action plan based on employee feedback and communicating it to employees is crucial in this process.”
When asked about the reasons for not offering bonuses this year, managers cited factors such as layoffs and workforce reductions (35 per cent), reduced profit margins (31 per cent), economic uncertainty and inflation (20 per cent) and changes in compensation strategies (14 per cent).
Read: 52% of workers say receiving an annual bonus makes them feel appreciated at work: survey
Despite some employees planning to leave their job if not offered a bonus, Fox notes the current job market and economic uncertainties, such as U.S. tariff threats, could play a significant role in employees’ decisions to stay or leave their current roles, adding employers that offer a comprehensive benefits package will have an advantage in attracting and retaining talent. “By doing so, employers can mitigate the risk of turnover and retain their top talent even in uncertain times.”
In a challenging economic climate that will impact employers’ ability to offer bonuses, he notes communication and clarity are key to building and retaining employee trust.
“Being honest and involving employees in their career journey will be a vital retention tactic. In addition to increasing non-financial-related benefits where possible, businesses should also revise their timelines on pay reviews so that they don’t leave their employees hanging in the lurch. Where new year and mid-year pay reviews are the norm, businesses should consider quarterly pay or bonus reviews — particularly if they were unable to give the anticipated end of year bonus or pay increase.”
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