16 December 2024

Why 65% of Us Like Bonuses Tied to What We Do

By Ronald Smith

Did you know that a whopping 65% of employees actually like getting bonuses that are linked to their own performance? It’s true! That’s what a survey found. So, why is that? Well, let me explain.

I don’t know about you, but personally, I get a real kick out of knowing that my hard work and effort directly impact the amount of bonus I receive. It feels good to be recognized for my individual contributions, you know? It’s like a pat on the back, a little nod that says, Hey, you did great! It motivates me to keep pushing myself and striving for excellence.

But it’s not just about the individual satisfaction. Having bonuses tied to personal performance can also benefit the company. When employees know that their bonuses are directly linked to what they do, it creates a sense of ownership and responsibility. It encourages us to take our tasks and responsibilities seriously and do our best. And let’s be honest, when we perform at our best, the company wins too.

Now, I get it. It might sound a bit odd at first. Some might think, Why not just give everyone the same bonus regardless of their performance? Well, that’s a fair question. But here’s the thing: when bonuses are tied to individual performance, it promotes a healthy competition among employees. It pushes us to constantly improve and innovate. It fosters a culture of excellence and continuous growth. And trust me, that’s the kind of environment that breeds success!

Of course, it’s important to strike a balance. Bonuses should be fair and based on realistic, achievable goals. Otherwise, it could lead to unnecessary stress and pressure. Nobody wants that. So, it’s crucial for companies to set clear expectations and provide the necessary support and resources for employees to succeed.

So, there you have it. A majority of us actually prefer bonuses that are tied to our personal performance. It’s not just about the money, but the recognition and motivation it brings. Plus, it positively impacts the company as a whole. Now, isn’t that pretty cool?

Why 65% of Us Like Bonuses Tied to What We Do

In a recent survey carried out by Payscale, they found that 65% of employees in the United States prefer to receive bonuses based on their own performance. It seems that these bonuses hold great appeal for workers because they see them as being very profitable. However, in order to qualify for these bonuses, employees often have to meet challenging goals.

Facts About Compensation

The survey also revealed that 75% of workers prefer to receive tiered performance bonuses rather than unpredictable ones. Interestingly, even if the total amount is the same, 53% of workers would rather receive 12 monthly bonuses while 47% prefer one annual bonus.

I wanted to share some interesting information with you. You see, last year was a really great year for jobs in the US. Businesses added a whopping 2.6 million jobs, which was 40 percent more than everyone expected. The economy was booming, which meant there were lots of job options available. So many, in fact, that workers were leaving their current jobs to find better ones.

This caused a bit of a problem for businesses. They didn’t want to lose their talented workers, so they started working on ways to keep them. One way they did this was by improving how much they paid their employees. The demand for workers was higher than the supply, so companies had to increase wages. And it worked! Wages went up by 3.2 percent compared to the previous year.

How to Keep Employees

I also found out that a lot of businesses are taking employee retention seriously. In fact, 66 percent of organizations this year said it was a high priority, which is 7 percent more than last year. However, even though companies want to keep their employees, they’re not always spending more money on their salaries.

Did you know that a recent report found that a whopping 81% of organizations are planning to increase their employees’ base pay in 2019? That’s pretty exciting news, right?

But here’s the thing, the average increase isn’t expected to be much different from last year. In fact, about 69% of employers estimate that the average pay increase will be 3% or even less. It’s not a big jump, but hey, at least it’s something!

Now, let’s talk about how organizations are trying to keep their top performers happy and motivated. They’re getting creative with their tactics, I’ll tell you that. One popular approach is the merit-based pay plan, which 61% of organizations are planning to use in 2019. Basically, if you’re doing a great job, you’ll get rewarded for it.

But that’s not all! Organizations are also focusing on providing learning and development opportunities for their employees, with 59% of them implementing this strategy. It’s all about helping you grow and become even better at what you do.

And last but not least, there’s the discretionary bonus plan. Around 34% of organizations are using this approach to motivate and reward their employees. It’s like a little extra something to say, Hey, we appreciate all your hard work!

Exciting stuff, right? I can’t wait to see how these strategies play out in 2019!

I’ve got some interesting info to share with you. So, it turns out that businesses are getting pretty crafty when it comes to hiring and keeping their employees in this competitive job market. They’re not just sticking to the usual stuff like health insurance and retirement plans anymore. Nope, they’ve kicked it up a notch.

Nowadays, employers are all about that work-life balance. They’re realizing that it’s important to meet their employees’ changing needs and wants. This means giving them some flexibility. Get this: 44% of companies surveyed are now letting their employees work from home, up from last year’s 39%. Pretty cool, right?

But that’s not all. They’re also offering other awesome perks to keep their staff happy. Like, over a third of companies (that’s 37%!) are giving employees the option to have flextime. That means they can adjust their work hours to fit their personal schedules. And get this – 32% of companies are now offering paid family leave. That’s a big deal!

But wait, there’s more! Some companies (about 10%) are even experimenting with a four-day workweek. Can you imagine having an extra day off every week? How awesome would that be?

So, bottom line is, businesses are really stepping up their game to attract and keep great employees. They’re offering all sorts of incentives and benefits to make their staff happy. It’s pretty cool to see how companies are evolving and adapting to meet the needs of their employees.

Today, a lot of workers, especially younger ones, want to learn and grow, and they expect their employers to help them do so. In 2019, organizations think that training and development is the most important thing in HR. That’s what 7,030 people said. 23% of those people chose training as the most important thing, more than things like keeping employees, finding new employees, and paying them well.

Paying Attention to What’s Happening

In 2019, businesses are watching the job market carefully. 56% of the organizations surveyed looked at the whole job market in the last year. 24% looked at what individual jobs paid every year, and 18% looked at it every month.

I’ve learned that many companies have realized the importance of using multiple data sources to cover all of their positions. In fact, back in 2018, a whopping 82% of organizations used two or more sources of market data.

But here’s the thing – businesses are still struggling to establish a strong pay brand. Out of these businesses, only 40% feel confident about their pay brand among their employees. And you know what? A slightly larger group of 41% feel like their pay brand is neither good nor bad. Another 19% even describe their pay brand among employees as bad or very bad. Some companies honestly admit that they haven’t even developed their pay brand yet, while others are trying to figure out how to improve pay transparency.