Nov 27, 2006

Christmas Bonus or Performance Incentive Pay

Last year only 31% of business gave their staff Christmas bonuses. This is from a survey done by Hewitt Associates and reported on in the Dayton Business Journal by Suzelle Tempero. This was a drop of 14 % from prior years. Companies have opted to incorporate their annual Christmas bonuses into some form of incentive or performance award.

Under the tree this year: A Performance Review
Quoted from an article by Marilyn Gardner, Staff writer of The Christian Science Monitor: "We're seeing the holiday bonuses disappear," says Brian Drum, president of Drum Associates in New York. "Thirty-five years ago, when I first dealt with a lot of companies that used to pay the so-called Christmas bonus, it was a gift. Today, as companies are becoming larger and consolidated, they are giving because it's performance-related." Tying rewards to the performance of the company serves to motivate workers, employment specialists say.

Small wonder companies pay this guy the big bucks.
From a PR Newswire: "They're humbug because they often subvert employee incentive rather than fostering it," says Filson, founder and president of the Filson Leadership Group, Inc. "After all, when it comes to incentives, pay and perks are far less effective than good leadership."