Are Employees Expecting Larger Bonuses this Year? Reports are saying “Yes”.
Are employees expecting larger bonuses this year? According to Korn Ferry, 51% are.
In 2018, Korn Ferry surveyed 756 salaried and professional-level employees regarding bonuses in their organizations. According to the report, 83% of employees mentioned they “expect to receive a bonus for work performed in 2018 during the first quarter of 2019”.
Gartner was another company who released its Global Labor Market survey in which 22,000 employees were interviewed. For the third quarter of 2018, it showed that “workers anticipate larger increases than last year for 2019 salaries and bonuses based on their 2018 job performance”. Additionally, base-pay expectations amongst employees have risen nearly a full percent – with workers expecting a wage increase of 3.9% in 2019 including their bonus and merit payouts of 3.8%.
However, mostly all companies set “bonus budgets” months before 2019. In fact, Willis Towers Watson’s Midyears 2018 survey among 814 companies showed that employers were projecting that discretionary bonuses paid in 2019 would be slightly higher than in 2018:
- 3.9% for nonexempt hourly employees (unchanged from 2018)
- 5.9% for exempt non-management employees (up from 5.7% in 2018)
- 9.3% for managers (up from 9% in 2018)
- 21.3% for executives (down from 21.9% in 2018)
And, when it comes to annual performance bonuses (tied to company/employee performance) within a variable pay plan it is expected to hold steady or slightly decline:
- 5.7% for nonexempt hourly employees (down from 5.8% in 2018)
- 11.7% for exempt non-management employees (unchanged from 2018)
- 21.3% for managers (down from 22% in 2018)
- 43.8% for executives (down from 44.6% in 2018)
All of these reports have one thing in common – that due to 2018’s strong economic performance across various industries, employees have higher expectations when it comes to wages and bonuses.
Therefore, companies including healthcare organizations must develop a strategy and plan focused on “employee expectations” as well as how to allocate their compensation dollars in order to stay competitive, attract, and retain talent. Outside of bonuses, companies should consider adding benefits such as parental leave, tuition assistance, mentorship, professional development programs etc.
MASC Medical is a nationwide leader in healthcare staffing, and physician recruiting. Our expertise, resources, relationships, and proven strategies have allowed us to develop a proactive, and efficient approach when serving clients nationwide – allow us to find the right physician, physician assistant, nurse practitioner or dentist for your healthcare organization today. In fact, the search for the right candidate is risk and worry free – we’re paid on results!
Learn more about MASC Medical by simply connecting with one of our medical recruiters today!