Don’t Wait Too Long for Bonus This year
By Jane Han
Staff Reporter
December is the month when employees commonly expect extra envelopes from their boss, but it looks like many eager workers worldwide will be left waiting, as the global economic slowdown keeps employers from rewarding Christmas bonuses this year.
A recent survey of 100 global companies done by job placement company, Challenger, Gray & Christmas, shows that only two-thirds of them will give annual bonuses at the year's end and just 3 percent of companies are set to raise the amount.
However, because the economy _ dogged by the subprime mortgage crisis _ was so slow in the fourth quarter, experts say even this should be appreciated.
``Yearend bonus recipients can thank a relatively robust economy that lasted through the first three quarters,'' said John A. Challenger, CEO of the recruiter, adding that this was the reason bonuses are intact.
But he added that an expected sluggish consumer and business spending in 2008 due to the housing slump will probably make situations worse next year
Locally, online recruiter Career's survey of 350 companies showed that less than half will award annual bonuses this month.
About 45 percent said they have incentive plans, while 31.6 percent said they don't and 23.1 percent aren't sure yet.
While the giver is hesitant, the same poll showed that 80 percent of 845 employees are expecting the extra money, demonstrating the inevitable disappointment workers may face later this month.
But although the overall employer sentiment is shy on rewarding bonuses this year, those in certain sectors, such as shipbuilding and heavy industries, keep their hopes high thanks to strong business throughout the year.
Getting an extra something is one thing, but what form it comes in is another, as there seems to be a clear difference in how employers and employees each define the term ``bonus.''
``Oftentimes, many employers attempt to slip by the holiday season with gifts, instead of monetary rewards,'' said Kim Hyung-jin, a business consultant of Clear Management.
``However, no employee will think a fruit basket or bottle of wine equals to that of a bonus. It's a no-brainer that they want money.''
Workers undoubtedly prefer cash over anything, but the Career survey showed that 30.8 percent of companies hand out gift sets as their No. 1 form of bonus.
The reason for the cash craze is mainly attributed to investment purposes with almost 45 percent of employees making plans for extra savings, said the recruiter. Travel, debt payment and shopping followed.
``The tight economy leads both employers to hesitate and employees to anticipate that extra envelope,'' said Career CEO Kim Ki-tae.