Korn Ferry Bonus Survey: Professionals Mixed on Prospects for 2019 Payouts
December 18 2019 - 8:00AM
Business Wire
- Training and Development Tops Wish List for
Other Ways to Receive Incentives Besides Just Cash or Stock -
As professionals head into the new year, there is mixed
expectations on the amount they will receive for their hard work
and accomplishments in 2019. That’s according to a new survey of
professionals by Korn Ferry (NYSE: KFY).
The majority (88 percent) of respondents say they expect to
receive a 2019 bonus. Forty percent said it will be larger than
their 2018 bonus, 39 percent say it will be the same size as their
2018 bonus and 21 percent said it will be smaller than last
year.
Nearly half (49 percent) say their bonus is tied directly to
their individual performance, and 81 percent say their bonus is
tied to the performance of their teams and the organization
overall.
“To avoid adding to fixed costs with large annual salary
increases, companies are regularly relying instead on bonuses to
reward employees for superior performance,” said Don Lowman, Korn
Ferry’s Global Leader, Rewards and Benefits Practice. “CEOs are
quite willing to pay for solid results, but only if those results
are attained.”
While the vast majority (85 percent) of respondents say they
understand how bonuses are allocated in their organization, only a
slight majority (59 percent) agree that the bonus allocation
process is fair.
“Our research shows that increasingly, employees are talking
with their colleagues about how much they make, including the size
of their bonus,” said Lowman. “That’s why bonuses need to be
structured in a fair and transparent way that focuses on objective
performance metrics supported by a management process that is
understood and accepted.”
While 97 percent of respondents say they receive their bonuses
via cash, there are other forms of differentiated rewards that
employees would like to receive. The largest percentage of
respondents (30 percent) say training and development opportunities
top their list, and 27 percent cited a paid vacation.
“While bonuses are a critical part of total compensation
packages, leaders must also look at all of the ways employees are
rewarded, including development and advancement opportunities,
meaningful work, an energizing work climate, health and wellness
benefits, a competitive base salary and paid-time off,” said
Lowman.
About the survey
The Korn Ferry survey of professionals took place in December
2019 and garnered 1,028 responses.
Survey Responses:
Are you in a job that is eligible to
receive a bonus for the work you completed in 2019?
Yes
92 percent
No
8 percent
Do you expect to get a bonus for work
you accomplished in 2019?
Yes
88 percent
No
12 percent
Did you get a bonus for work you
accomplished in 2018?
Yes
84 percent
No
16 percent
If you are getting a bonus this year
will it be:
Larger than last year
40 percent
The same as last year
39 percent
Smaller than last year
21 percent
Is your bonus tied directly to your
individual performance?
Yes
49 percent
No
51 percent
Is your bonus tied to the performance
of your teams and/or organization?
Yes
81 percent
No
19 percent
Identify the way your bonus is
allocated to you
Cash
97 percent
401(k) or other employer-provided defined
contribution
0 percent
Stock
3 percent
Besides cash or stock bonus payments or
a 401(k), what’s the top way you’d like to receive
incentives?
Flex time
14 percent
More time off
14 percent
International assignments
7 percent
Sabbatical
12 percent
A paid-for vacation
27 percent
Training and development opportunities
30 percent
Do you understand how bonuses are
determined in your organization?
Yes
85 percent
No
15 percent
Do you think the bonus allocation
process is fair in your organization?
Yes
59 percent
No
41 percent
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work
with clients to design their organizational structures, roles and
responsibilities. We help them hire the right people and advise
them on how to reward, develop and motivate their workforce. And,
we help professionals navigate and advance their careers.
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Tracy Kurschner 612.309.3957 Tracy.Kurschner@Kornferry.com
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