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Almost 80% of the companies surveyed planned to reward their staff with a bonus between one to two months, according to Randstad’s Bonus Expectation survey in Hong Kong, which includes more than 125 employers and 442 locally-based professionals across various disciplines.
Overall, eight-seven per cent Hong Kong-based employees expect a bonus and eighty-five per cent of the employers surveyed have planned for a bonus payout this year. While 22 per cent of the employees surveyed expect an annual bonus averaging three to five months, only eight per cent of employers aligned with employees’ expectation. Only one company of those surveyed is giving five months or more in annual bonus.
Although the majority of the respondents agreed that receiving a bonus can lead to the level of their engagement within the company, more than half said financial remuneration is not the sole factor that will make them start considering the possibility of a job change.
Needless to say, four in 10 respondents said that they will start a new job search if they do not receive a bonus this year, with a majority of these respondents working in the banking and financial services industry (38 per cent).
The survey also revealed that 56 per cent of the organisations in Hong Kong practice tiered-bonuses. Unlike a flat-bonus scheme where all employees within the company receive the same amount of bonus regardless of their performance and job scope, a tiered-bonus scheme rewards employees based on their performance and scope of responsibility.
“A tiered-bonus scheme not only rewards good performers, it also helps motivate and incentivise employees to certain milestones and work towards surpassing their goals and targets. Companies that practice tiered-bonus structure tend to have a more flexible budget which is highly dependable on the organisation‟s profit. However, companies will also reduce bonus budget when the company does not perform as well. As a result, employees are more driven to perform better so that they can receive more bonus at the end of the year.” Natellie Sun, managing director of Randstad Hong Kong, said.