Survey: Companies give in form of cash or gift certificates
Perhaps it was a harbinger of things to come in the workplace.
When National Lampoon’s Christmas Vacation came out 30 years ago, the Christmas bonus was common place. In fact, Clark Griswold — portrayed by Chevy Chase — was banking on it to help pay for the swimming pool he wanted to build in his backyard.
Clark Griswold eventually got his bonus after Cousin Eddie — Randy Quaid — took matters into his own hands. No jelly-of-the-month club for Clark Griswold.
These days, however, the chances of getting a year-end check at the holidays is less and less each year, according to Challenger, Gray & Christmas Inc., a Chicago-based outplacement company.
In its annual holiday survey of 250 companies across the country, Challenger found 20.8% of all companies will give a monetary bonus of $100 or less to its workers, in the form of cash or gift certificates. This is a slight decline from the previous year. Only 9.64% will award a monetary bonus based on its performance throughout the year, also down from 2018.
Of the companies that Challenger surveyed, a little more than 9% of the companies said the monetary value of the year-end bonus will increase, while 13.33% said the monetary value will decrease, and 75.33% said the monetary value of the bonus will be the same as it was a year earlier.
The workforce has changed, too, in the last 30 years since the classic holiday movie was released. In the 1970s and 1980s, people tended to stay with their companies for more than a decade. (In Christmas Vacation, Chevy Chase’s character had been with his company for 17 years.)
John Deskins, director of West Virginia University’s Bureau of Business and Economic Research, called the no Christmas bonus trend counter intuitive, especially in a labor market where there are workforce shortages.
“The whole point of the bonus is to incentivize the workers,” Deskins said.
While the awarding of holiday bonuses appears to be ending, there are some area companies that still hand out checks to workers.
The Thrasher Group in Clarksburg employs more than 500 people and is one of the state’s largest engineering companies. It has awarded holiday bonuses to its employees for years.
“The Thrasher Group has always operated as a family, so we do our best to show gratitude for our employees through several avenues,” said Chad Riley, Thrasher CEO. “One of the ways we do this is with a Christmas gift. It is meaningful to our employees and a nice way to say thank you after a year of hard work.”
Brandon Sickles, owner of ProTex LLC, a Morgantown security installation firm, employs 10. He said he has always given holiday bonuses since he started his business 11 years ago.
The size of the bonus depends on the time an employee has been with the company, Sickles said.
“It boosts morale and shows we appreciate them,” he said. “If you keep the employees happy and take the burden of financial need away, then you get better performance.”
The average holiday bonus check is $858, according to a national survey by Accounting Principals, an accounting and financial temp agency. And yes, the bonus is considered supplemental wages and is subject to taxation.
Still, companies are recognizing workers during the holidays, Challenger said.
“While several indicators suggest companies may be concerned about the economy in the coming year, that concern does not appear to extend to the company holiday party,” Andrew Challenger, vice president of Challenger, said in a statement.
Nearly 76% of the companies it surveyed said they will hold a holiday party, the highest percentage since 2016. Challenger said this represents a 10% increase from 2018. Plus, more companies plan to extend invitations to partners and families — 47%. This is up from 30% in 2018.
“Generally, profits are up and corporate tax cuts have been a boon for companies,” he said. “While there may be a coming slowdown that could impact next year’s festivities, this year employees will party.”
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