‘Bonus key to retaining employees’
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.