The use of bonus programs continues to increase as organizations seek other forms of cash compensation to reward employees. These reports are a survey of WorldatWork members to gather information about trends in bonus programs and practices. The research measures prevalence data on each of the types of bonus programs but also provides common eligibility criteria, payout averages and other details about how the programs are administered.
This report summarizes the results of a WorldatWork survey, where members gather information about trends in bonus programs and practices. The research measures prevalence data on each of the types of bonus programs but also provides common eligibility criteria, payout averages and other details about how the programs are administered.
The largest group of companies reported awarding between $1,000 and $4,999 to an employee for referring someone who is hired. Ten percent of companies pay a bonus of $5,000 or more to an employee who refers an executive to the company.
Interestingly, the 2002 survey data indicates a slightly higher prevalence of retention bonus in the more difficult market conditions. In 2000, about 24% of the 650 WorldatWork members who responded to the survey reported having a retention bonus program in place. In May 2002, however, 34% of the 772 members indicated their organization has a retention bonus program.
Is there room for improvement in spot bonus programs? It seems so, with 42% of the respondents indicating that the amount awarded may be too low to be effective. Communication is also a factor: 36 percent of the respondents felt that there is a lack of communication to managers on the availability of the tool, a problem which hinders success.
