Less than half of workers expecting annual bonus

Less than half of UK employees are expecting to receive an end-of-year bonus this year, according to talent management consultancy Taleo.

The Bonus Barometer survey found that, despite having weathered the recession, just 39% of respondents are expecting to receive an end-of-year bonus.

Although this indicates that bonuses will be slightly more common than last year, when just 34% of respondents received a bonus of any kind, the research suggests that workers receiving a bonus this year will still be in the minority.

The survey also found that most businesses do not align corporate success with individual success when reviewing rewards. Just 19% of respondents stated that their employer calculates bonuses using personal performance targets linked to business goals.

Instead, the majority of bonus calculations (51%) are based either on the general success of the business (21%) or on individual success (30%). Worse yet, one fifth of employees do not know how bonuses are calculated at their company.

Chris Phillips, vice president, international marketing at Taleo, said: “In order to ensure they are getting the best possible value out of their bonus and reward schemes, businesses need to clearly align corporate and individual targets. Goals alignment is a key part of any effective performance management strategy. Without it, businesses cannot be sure that an employee’s personal efforts will directly contribute to the company’s overall success.”

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