If your company was one of the many to put bonuses on the back burner during the recession, it may be time to bring them back (if you haven’t already) or risk losing the talent acquisition and employee retention war.
According to a new survey of 713 HR pros conducted by WorldatWork, four main types of employee bonuses — referral, spot, signing and retention — are on the rise. In fact, each of those four types of bonuses are in use at the majority of respondents’ organizations, with the least-adopted bonus being the retention bonus, which is in use at 51% of respondents’ companies. But that 51% adoption rate is a far cry from the 25% of organizations who were using it the last time WorldatWork conducted the survey in 2010. How many companies are offering all four? Nearly one in three (29%), which is a huge increase from the 9% that reported doing so back in 2010.
Here’s a rundown of the adoption rate increases of each of these bonuses over the past four years;
- Signing bonuses — adopted by 74% in 2014 (compared to 54% in 2010)
- Referral bonuses — 63% (versus 60% in 2010)
- Spot bonuses — 60% (versus 43% in 2010)
- Retention bonuses — 51% (versus 25% in 2010)
While the unemployment pool remains relatively crowded, it’s still sparse on top talent – and companies are looking for ways to attract talented individuals from their existing employers as well as retain their existing talented employees. If you haven’t thought of adding bonuses (or more bonuses) to your total compensation package, it may be time to do so.
If your company is in need of assistance in building a bonus program for your existing and future employees, call Alternative HR today at 717-855-5589!