A significant number of employees are not hopeful for a larger Christmas bonus this year.
- Only 8% of employees are expecting a larger bonus, revealing low expectations.
- 60% of employees don’t anticipate receiving any Christmas bonus at all.
- Many employees are also doubtful about getting a pay rise next year, partly due to increased employer costs.
- Employee benefits packages are seen as a more valuable alternative by a majority of workers.
A recent study indicates only 8% of employees are expecting larger Christmas bonuses this year. This highlights a prevalent sense of low expectations regarding financial rewards. A considerable portion of the workforce, amounting to 60%, do not foresee receiving any bonus at all, according to research from Zest, an employee benefits technology provider.
There is a widespread anticipation of stagnant or no pay increases in the coming year. Over four in ten employees are not optimistic about pay rises due to the newly announced Employer National Insurance contributions. This follows a trend throughout 2024, where only 43% of employees received the expected pay increase.
Employers face potential challenges in staff morale and productivity if adequate financial incentives are not provided. It becomes essential for employers to explore alternative reward mechanisms. Nearly 71% of those expecting a Christmas bonus would rather receive enhanced benefits packages, showing a strong preference for longer-term support. Particularly, the younger demographic, aged 18-34, value benefits over bonuses.
Research shows that 57% of employees believe funds spent on Christmas parties would be better directed towards benefit packages. This emphasizes a shift towards prioritizing sustainable financial rewards over one-time incentives. Despite this, 41% of employees still find their current benefits inadequate, suggesting room for improvement in what is offered.
Matt Russell, CEO of Zest, emphasizes the need for innovative reward strategies. He remarks, “After another challenging year, it’s apparent that many employees are not receiving the financial rewards they seek. If pay stagnates or bonuses are absent, companies must find other ways to reward employees or risk losing talent.”
Employers must adapt to these shifting employee expectations by focusing on comprehensive benefits to retain and motivate their workforce.
