More employers are saying ‘bah, humbug’ to bonuses this holiday season

(This post originally appeared on The Washington Post)

The economy is humming along. Profits are up. Confidence is high. The stock market is breaking records. So with all this great economic news you would think that most employers would be feeling kind of flush this holiday season — and planning to pay out more year end bonuses. Turns out, the opposite is happening.

According to the most recent annual survey from outplacement firm Challenger, Gray & Christmas, this year’s holiday bonuses planned by employers will actually be less than what was paid out in 2016.

Administrators of the survey interviewed about 150 human resources executives this fall and found that less than half (39 percent) will be offering holiday cash bonuses this year — and that number declined from 41 percent in 2016. In addition, more employers (35 percent) are saying they’re giving no year-end awards of any type at the end of the year, which is up from 30 percent in 2016. Of those giving bonuses, eight of ten will keep the amounts the same as last year, despite showing higher profits. Bah humbug!

Why so stingy when good people are scarce, unemployment is low and employee recognition is so important to so many? The survey found that “slightly more” employers prefer to give non-monetary gifts, like more time off (a valued benefit that’s in demand by many millennials) or even gift baskets. But mostly, well, it seems that employers are just less willing to share the wealth this year.

“These results are surprising, given the tight labor market,” said Andrew Challenger, a vice president at Challenger, Gray & Christmas, in a statement. “Year-end bonuses are a reliable way to attract and retain talent.”

Do you give year-end bonuses to your employees?