Just 8% of employees are expecting a larger Christmas bonus this year, reveals new research from employee benefits technology provider, Zest.
In addition, six in ten (60%) employees admit they aren’t expecting a Christmas bonus this year.
Employees aren’t hopeful for their prospects of improved financial rewards next year – over four in ten (44%) employees are not expecting a pay rise in the next year due to the increase in Employer National Insurance contributions announced in the recent Budget.
Many employers have already been scaling back pay rises throughout 2024, as just two fifths (43%) of employees received the pay rise they were expecting this year.
Employers who fail to provide adequate financial incentives risks not only negatively impacting staff morale but also hitting productivity and ultimately losing talent – employers need to ensure that they’re able to motivate and reward employees in a way that extends beyond salary.
Benefits packages offer a cost-effective solution to reward staff – seven in ten (71%) employees who will be getting a Christmas bonus would prefer a better benefits package instead of a Christmas bonus. Demand is greater amongst younger workers with eight in ten (80%) employees aged 18-34 prioritising benefits over bonuses.
Similarly, the research shows that nearly six in ten (57%) employees think that the money spent on a Christmas party could be better spent on their employee benefits package, demonstrating the strong preference for longer-term financial support.
The importance of workplace benefits packages is demonstrated from recent research findings from Zest that revealed that although two-thirds (63%) of employees agree that company benefits have become more important to them when deciding where to work, two in five (41%) employees think their workplace benefits package is inadequate*.
Matt Russell, CEO of Zest, said, “After yet another tough year, many employees appear resigned to not receiving the financial rewards they’re looking for from their employer.
“If pay stagnates or organisations are unable to offer bonuses they must ensure they are finding alternative ways to reward employees or they risk falling behind competitors. Employee benefits packages offer a cost-effective approach for employers to reward employees without salary hikes and ensure they continue to attract and retain key talent.”
Zest is an employee benefits technology company with over 500 customers, including Hargreaves Lansdown, Taylor Wimpey, Yahoo and Travis Perkins, serving over 300,000 employees. Its multi award-winning platform offers a fresh approach to truly flexible employee benefits.
Employers can use Zest’s ROI Calculator to learn more about potential savings on employer NI contributions as well as approaches to reduce talent loss and boost productivity: https://www.zestbenefits.com/roi-calculator/
