Most firms are not dishing out bonuses this year, but they need to find other ways to keep valued staff on side or risk losing them once the economic gloom lifts.
Research from talent management firm Taleo showed that 39% of UK employees expected an end-of-year bonus, compared with 34% last year. But only 19% of firms linked employees’ personal performance with business goals. Instead 21% of bonuses were based on the general success of the business and 30% on an individual’s performance. One in five employees had no idea how their bonuses were calculated.
Chris Phillips, Taleo vice president of international marketing, said that it was important for bonuses to be linked closely to business goals, so people could appreciate the affect of their individual contribution.
“One of the other ways to motivate is for people to understand what their contribution is to the organisation, not just their personal goals but understanding the alignment of those goals and what the company is trying to achieve overall,” said Phillips.
Companies should also look at non-financial ways of motivating staff and encouraging loyalty, including setting up personal development programmes for individual employees and creating a culture where staff are put forward for internal job opportunities.
“Paying attention to keeping valued staff happy is key for sectors such as IT, where skills are at a premium,” said Phillips.
