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Most CFOs Expect Little Change to Year-End Employee Bonuses

More Bonus Increases Than Decreases Planned, Research Shows

The Financial Year Journal -- Financial executives don't anticipate bonus levels will differ much this year compared to 2012, suggests recent research. The good news for workers is that at companies where bonuses will change, they are more likely to rise than fall.

In the Robert Half survey, 17 percent of chief financial officers (CFOs) at firms that offer bonuses said their bonus levels in 2013 will increase over last year, compared to just 7 percent of respondents who expect a decline. Sixty-seven percent of executives foresee no changes.

The survey was developed by Robert Half, the world's first and largest specialized staffing firm, and conducted by an independent research firm. It is based on interviews with more than 700 CFOs from organizations that offer year-end bonuses to employees. Respondents were from a random sample of companies in more than 20 of the largest U.S. markets.

CFOs whose companies offer year-end bonuses were asked, "Does your company plan to increase, decrease or leave employee bonuses unchanged this year?" Their responses:
Increase from last year : 17%
Unchanged from last year : 67%
Decrease from last year : 7%
Don't know/no answer : 9%

Changes to bonus levels are projected to vary by location. Miami is the city with the largest percentage of CFOs, 28 percent, expecting to pay higher bonuses. Workers in New York and Seattle are also more likely to receive bigger bonuses; 26 percent of CFOs in both metropolitan areas anticipate their companies will increase bonuses this year.

"Bonuses can be a valuable way to acknowledge employees' work and help retain valued staff members, many of whom have seen their roles expand in recent years without a commensurate spike in salary," said Paul McDonald, Robert Half senior executive director. "Firms that don't offer bonuses, or plan to scale them back, may find other ways to reward their teams, such as training opportunities or staff celebrations. These nonmonetary perks show staff members they're valued and their contributions are appreciated by the organization."

Note: For additional information on employee compensation, including starting salary projections for 2014, visit roberthalf.com/salary-guides

About Robert Half
Founded in 1948, Robert Half is the world's first and largest specialized staffing firm. The Menlo Park, Calif.-based company has staffing locations worldwide and offers online job search services on its divisional websites, all of which can be accessed at roberthalf.com

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