It's the end of the year! This is the time of year many companies offer pay increases and bonuses, so we thought we would share some of the latest thinking around these topics. Happy New Year to you - we hope 2016 is filled with good fortune and happiness.
1) 5 Bonuses Employees Love No Matter What the Time of Year from Entrepreneur
"It’s the end of the year, which for many employees means holiday bonus season. Originally, monetary holiday bonuses were intended as appreciation for employees -- and help with the extra expenses they incur this time of year. But is a bigger paycheck once a year still the best way to engage employees and acknowledge their hard work? A 2015 Glassdoor survey of more than 2,000 employees found that 79 percent of respondents would prefer new or additional benefits, instead of a pay raise. Considering that preference, then, here are five unique bonuses employees will appreciate more than extra cash -- bonuses they can benefit from year 'round, long after the holidays have ended."
2) These Epic Holiday Bonuses Will Inspire You to Do Better by Your Employees from Fast Company
"Annual, predetermined, lump-sum holiday bonuses are not an effective means of rewarding employees for a job well done. And employers have begun to realize that the annual gift of cash does little to improve employee satisfaction, recruiting, and retention, especially when the gift is expected. According to a recent study by Bankrate.com, only 17% of those who are expecting a holiday bonus this year intend to enjoy the extra cash in the form of a gift. Instead, 76% intend to use their bonus to pay off bills, their debt load, or add it to their savings. What's more, only a quarter of Americans are even expecting a pay raise or bonus this holiday season."
3) Worker salaries are poised to climb in 2016 from Los Angeles Times
"American workers are poised in 2016 to finally get what they've been missing for years: higher salaries. Even as the recovery from the Great Recession brought booming corporate profits, most workers' salaries have barely kept up with inflation. But now, as the nation edges ever closer to full employment and with layoffs near historical lows, there are growing indications that ordinary workers are finally starting to reap some of the gains of the 6 1/2 year-old recovery. A variety of wage and salary statistics — from payroll processors, private analysts and Federal Reserve researchers — indicate that the underlying rate of pay increase for workers has been picking up much more in the last year than commonly thought."
4) What to do with your year-end bonus from CNBC
"If you were lucky enough to land on your company's nice list this year, continue being a good girl or boy and consider investing your holiday bonus. According to data from financial services provider TIAA-CREF, putting a significant lump sum to work in the market usually returns better results than dollar-cost averaging. For all rolling 12-month periods starting each month from January 1926 through August 2014, the financial services firm found that a lump sum invested in a portfolio of 80 percent stocks and 20 percent bonds delivered greater returns than dollar-cost averaging the same amount of money over three-, six- and 12-month periods a majority of the time. Even better, in a portfolio of 20 percent stocks and 80 percent bonds, the lump sum investment beat dollar-cost averaging even more."
Lexi Gordon is a Lead Consultant for exaqueo, a workforce consultancy that helps organizations build their cultures, employer brands and talent strategies. Contact exaqueo to learn more about our employer brand innovation, workforce research, and recruiting strategy offerings.