Bonuses remain a key part of the reward offering for UK employers in 2009, but 2009 bonus payments are likely to be constrained by the economic downturn (subscription required). These are among the key findings of a major benchmarking survey of bonus and incentive pay practice, newly published by Industrial Relations Services (IRS), part of the XpertHR group.
The survey reveals that:
- three-quarters (74.5%) of UK employers surveyed by IRS say bonus/incentive schemes are effective in meeting their stated objectives;
- the main disadvantage of bonus/incentive schemes is employee disappointment with resulting payments, mentioned by 42.7% of respondents;
- the median value of bonus payments in 2008 was 10% of basic salary; and
only 17.9% of respondents expect the value of their 2009 bonus pot to be higher than 2008.
Bonuses, for all their enduring popularity, could therefore prove problematic for many employers in 2009 as the impact of the economic downturn bites.
- Has your organisation recently carried out an annual pay review? If so, and if it has now been settled, please get in touch so that we can add your organisation’s pay award to the IRS database.