‘Bonus key to re­tain­ing em­ploy­ees’

New Straits Times - - News -

A re­cent sur­vey con­ducted by an em­ploy­ment agency has found that bonus pay­ment is the de­cid­ing fac­tor for em­ploy­ees when it came to stay­ing on in their cur­rent work­place.

JobStreet.com said 72 per cent of the em­ploy­ees sur­veyed agreed that one of the rea­sons they re­mained with their cur­rent com­pa­nies was the bonus scheme.

They also said they would con­sider mov­ing to an­other job if they were of­fered higher bonuses there.

The claim, how­ever, was not re­cip­ro­cated by em­ploy­ers. Only 58 per cent of them ac­knowl­edged the big role bonuses played in em­ployee re­ten­tion.

“Em­ploy­ers say the de­ci­sion to leave or stay is in­clined to other fac­tors, such as bet­ter job op­por­tu­ni­ties and ca­reer pro­gres­sion,” said JobStreet yes­ter­day.

Be­cause of the dif­fer­ence in opin­ion re­gard­ing the role of bonuses in de­ter­min­ing em­ployee re­ten­tion, em­ploy­ers were urged to im­prove their em­ployee re­ten­tion pro­grammes.

“Em­ploy­ers who give out lower bonuses would need to eval­u­ate ar­eas to bridge the gap be­tween can­di­dates who were ex­pect­ing a higher bonus pay­out.

“To bridge this gap, em­ploy­ers could con­sider bet­ter ben­e­fits, en­gage­ment in or­gan­i­sa­tion ac­ti­va­tion (whether in­ter­nal, ex­ter­nal or so­cial) or brand­ing of the com­pany,” it said.

A ma­jor­ity of em­ploy­ers, or 90 per cent of them, were giv­ing out bonuses this year, a slight in­crease from 89 per cent last year.

More than 67 per cent of them said the bonuses given were be­tween one and two months.

On the part of the em­ploy­ees, ful­fill­ing job ex­pec­ta­tions and re­quire­ments had led 46 per cent of them to ex­pect big­ger bonuses.

“For salary in­cre­ment, there is a gap be­tween em­ploy­ers’ plan as op­posed to em­ploy­ees’ ex­pec­ta­tions.

“More than 58 per cent of em­ploy­ees were ex­pect­ing an in­crease of more than six per cent in their salary, while only 66 per cent of em­ploy­ers are giv­ing out in­cre­ments of be­tween three and six per cent,” the state­ment said.

For­tu­nately, JobStreet said, 90 per cent of em­ploy­ers had planned for an in­cre­ment this year, ver­sus 85 per cent last year.

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