Fewer businesses plan year-end bonuses
Slow sales and tight credit have small businesses scaling back on holiday cash. Has the financial crunch changed your company's bonuses plans?
From Noel, Anchorage, Alaska My small company probably won't perform any layoffs after the holidays, but that's only because a number of employees have moved on to other jobs, states, etc. And we will not be rehiring for those positions – so that has saved us from a layoff situation, but our benefits have always been poor and look to only get worse and the small bonus we get every year was halved. Employee morale is pretty darn low and many of my coworkers are hoping to find work elsewhere – if there's work to be had. I do feel pretty lucky just to have a job, though.
From EP, Greenville, SC I received my yearly raise this year and all the benefits are still in place, actually to my suprise they are adding some more benefits as of 1/2009. No layoffs here. The only thing we lost is our bonuses. However, my significant other received a huge five figure bonus, and a large raise. His company pays all his insurance. His benefits are amazing. And he works for a small company, it's a private family owned company. I have never seen a company so well managed. They prepared themselves for the worst and now they don't have to worry about the economy. They have more than enough cash to get thought these hard times. They don't have to lay off anybody, even if there is no work. I think those owners should do some lecturing for other companies that are so screwed up!!!
From L. Robinson You guys still don't get it.
There will be no bonuses this year, and staff will be released January 1. Those remaining (if any) will be on 20% reduction. Remaining benefits other than basic health insurance will be dropped 12/31. Now extrapolate this across the country. January is going to be an unemployment bloodbath. Small businesses simply cannot hang on past the holidays, and even that is going to be tough to do. It will be on the Owner's personal money, and he is not rich by any means. It's a truly pathetic situation. This successful firm is over 40 years old.
Bonus programs should be based on something other than an arbitrary date on the calendar. Instead, companies should employ rewards programs developed to retain quality personnel, drive results and create value for business owners and corporate shareholders. This method will tie motivation to company growth, especially important when companies face difficult economic times like these.