Handling Employee Bonuses

Do you offer your employees any kind of bonus? Instead of using raises as an incentive, many companies are moving to bonuses instead.

From The Wall Street Journal:

Employers are making employees work harder for their money.

Most workers will receive modest raises this year and next, as employers reward employees with performance-linked bonuses rather than broad salary increases, according to a survey by consulting company Hewitt Associates Inc. to be released today.

The economy and labor market are relatively strong, but employers are loath to increase fixed costs with raises. Hewitt predicts raises for nonexecutive white-collar workers -- the largest chunk of the work force -- will average 3.7% next year, slightly ahead of 3.6% increases this year and last. Raises remain below dot-com-boom levels, when they clocked in at 4% or higher between 1997 and 2001.

So, what do you offer your employees as an incentive? You may want to consider bonuses instead of raises to save money, and keep your employees happy.