The true cost of the Christmas bonus

New research suggests that the traditional Christmas bonus may be under threat, with just 7% of workers likely to get a festive treat in their December pay packet this year. However, the study also shows how employers may be missing out if they fail to amend their Scrooge-like ways.

The “Thank You” report, published by One4All, a multi-retailer gift card company, studied the practices at more than 1,000 workplaces across the UK and what impact bonuses had on staff morale, loyalty and company reputation.

The survey suggests that businesses that use Christmas as an opportunity to thank staff with a bonus will also find a gift in their own Christmas stocking.

For example, staff getting a Christmas bonus this year will be significantly less likely to move to a different job in 2015. 71% of staff surveyed said they would actually turn down the chance of earning more money rather than leave a company that regularly thanks them for their efforts.

Meanwhile, a failure by some employers to plan and deliver end-of-year recognition effectively means up to one third of Christmas rewards are wasted, according to another new survey.

The report, “Getting a Return from Christmas Reward in 2014” by employee benefits, incentives and rewards company Edenred looked at UK employees’ experience and expectations around Christmas. It found that barely a third of employees (37%) said they received a personal thanks from their employers when a Christmas reward was given; around one in three (30%) have never had a Christmas reward; and 9% couldn’t remember whether their employer gave them a Christmas bonus in 2013.

The research also found substantial differences in employee attitudes to a Christmas reward depending on their age. Among 18-25 year-olds, 56% said they expected something from their employer, compared to just 34% of employees aged 55 and over. Overall, 7% of employees said the idea of a Christmas reward was outdated.

The full results of the studies are available at one4allrewards.co.uk and edenred.co.uk/