Tampa, Fla., May 13, 2024 – A new Hudson Talent Solutions survey finds that when it comes to annual bonuses, many professionals are less than satisfied.
Nearly half of respondents (44%) say they are not happy with the amount of their bonus, and nearly a third (31%) say there is a lack of transparency about how bonuses are calculated.
“Bonuses are a key compensation tool to reward employees and help with retention,” said Hudson Talent Solutions CEO Jake Zabkowicz. “However, if there’s a lack of transparency on how bonuses are calculated and a perceived lack of equity and fairness, bonuses could actually be a factor in employee dissatisfaction. That’s why a thoughtful, well communicated approach to offering bonuses is critical.”
More than three-quarters of respondents (76%) say that bonuses should be negotiated as part of their compensation package, but should remain confidential, as 75% say it’s not appropriate to share the amount of their bonus with colleagues.
According to the survey, bonuses can help with retention, but only to some extent. Nearly two-thirds (64%) say that if they wanted to quit their job, they still would but they’d wait until after they get their bonus.
“Compensation, including bonuses, remains an important part of employee satisfaction, but retention efforts should be more holistic, including opportunities to learn, grow and develop,” said Zabkowicz.
While the majority of respondents say bonuses are paid out in the spring, 29% percent say they receive their bonuses at other points during the year.
About the Survey: The global survey of nearly 400 professionals took place in May 2024.
Survey results
Are you eligible for an annual bonus?
- Yes: 92%
- No: 8%
What timeframe is your bonus typically paid out?
- March/April: 55%
- End of Calendar Year: 10%
- End of Fiscal Year: 6%
- Other: 29%
If you wanted to quit your job, would you wait until after you receive your bonus?
- Yes, I’d wait for my bonus then quit: 64%
- No, I wouldn’t wait for my bonus if I really wanted to quit: 36%
Should you negotiate your bonus as part of your compensation package?
- Yes: 76%
- No: 24%
Is your employer transparent about the way bonuses are calculated?
- Yes to a great extent: 21%
- Yes to some extent: 47%
- No: 31%
Do you think it’s appropriate to tell co-workers the amount of your bonus?
- Yes: 25%
- No: 75%
Are you happy with the amount of your annual bonus?
- Yes to a great extent: 13%
- Yes to some extent: 29%
- No to some extent: 22%
- Not happy at all: 22%
- I don’t get an annual bonus: 14%
About Hudson Talent Solutions
Hudson Talent Solutions is a leading global provider of flexible and scalable recruitment solutions. We service all levels of client organizations, from entry-level to the C-suite, focusing on mid-market and enterprise-level organizations worldwide. Taking a consultative and collaborative approach, we partner with talent acquisition, HR, and procurement leaders to build diverse, high-impact teams and drive business success. Learn more at hudsontalent.com.