The use of bonus programs is increasing among organizations, with sign-on bonuses remaining the most prevalent.
July 14, 2016 — WASHINGTON, D.C. —The use of referral, sign-on, spot and retention bonus programs continues to rise as organizations seek other forms of cash compensation to reward employees, according to a new survey released by WorldatWork.
The survey, "Bonus Programs and Practices," reveals a modest increase between 2014 and 2016, with more than 60% of respondents indicating that bonus programs positively affect employee engagement, motivation and satisfaction (Figure 37).
"Organizations are increasingly finding additional ways to compensate their employees as merit budgets continue to remain stagnant," said Rose Stanley, senior practice leader at WorldatWork. "We have seen a big increase in organizations using all four bonus programs as needed compared to 2010 when the majority of organizations were only using one program. As merit budgets remain flat, employers arenât standing still and doing nothing in regards to compensation. They are using bonus options as needed to recruit and retain top talent."
Key findings include:
"As with many of the total rewards elements, organizations continue to use different tools in their total rewards toolbox as they deem necessary to create an engaging employee value proposition,â Stanley said. âThese four different types of bonus programs can assist organizations in a variety of situations. They allow them to respond to different situations that they may find themselves in due to influences both internally or externally."
For the purposes of the survey, each type of bonus was defined as follows:
Survey invitations were sent electronically to 5,200 WorldatWork members on March 16, 2016. The survey closed on April 1, 2016 with 726 responses, a 14% response rate. The dataset was cleaned and analyzed using statistical software. WorldatWork conducted similar bonus programs and practices surveys in 2014, 2010, 2008, 2005 and 2001(Retention Bonus Survey, Referral Bonus Survey, and Sign-On Bonus Survey).
WorldatWork bonus experts are available for comment. Interested media should contact Melissa Sharp Murdock at Melissa Sharp Murdock to schedule an interview.
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