The majority of employees (60%) do not expect a Christmas bonus this year, and only 8% are expecting a larger payout.
According to a survey by employee benefits provider Zest, 44% of respondents are not expecting a pay rise next year due to the increase in employer’s national insurance contributions announced as part of the recent budget.
In the study, it was found that many employers had already begun to reduce wage increases throughout this year. Only 43% of employees claimed they received the raises they expected in 2024.
Zest, in a statement, said that organizations who fail to offer good financial incentives run the risk of not only negatively impacting the morale and productivity of their employees, but also of losing talented staff.
The company emphasized that employers must be able to motivate and reward employees beyond their salary packages.
Research also showed that seven out of ten (71%) employees who were in line to receive a Christmas bonus, would rather have better employee benefits. Four out of five (18%) 18-34 year-olds prefer employee benefits to Christmas bonuses.
Nearly three-quarters (57%) also said they prioritized longer-term financial assistance, saying that Christmas party spending would be better invested into their employee benefits package.
The findings are similar to those from recent Zest research which found that two thirds of workers (63%) said employee benefits were more important to them in deciding where they would work. However, two fifths (41%) feel their company’s benefit package is insufficient.
Matt Russell, CEO at Zest, stated: “After another difficult year, many employees seem resigned that they will not receive the financial rewards from their employer.
If pay stagnates, or if organisations cannot offer bonuses, then they need to find alternative ways to reward their employees. Otherwise they will fall behind their competitors. Employee benefits packages are a cost-effective way for employers to reward their employees without raising salaries and to ensure that they continue to retain key talent.
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