Most Canadian CFOs expect little change in year-end bonuses
TORONTO--Financial executives don't anticipate bonus levels will differ much this year compared to 2012, suggests recent research. Further, at companies where bonuses will change, they are more likely to fall than rise.
In the Robert Half survey, only 8 per cent of chief financial officers (CFOs) at firms that offer bonuses said their bonus levels in 2013 will increase over last year, compared to a slightly higher 12 per cent of respondents who expect a decline. Sixty-two per cent 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 100 Canadian CFOs from organizations that offer year-end bonuses to employees. Respondents were from a random sample of Canadian companies. .
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 8%
Unchanged from last year 62%
Decrease from last year 12%
Don't know/no answer 19%
*Numbers do not total 100 percent due to rounding.
Changes to bonus levels are projected to vary by industry. Manufacturing is the sector with the largest percentage of CFOs, 33 per cent, expecting to pay lower bonuses. Whereas workers in wholesale and transportation are likely to receive bigger bonuses; 17 and 14 per cent of CFOs in those sectors, respectively, anticipate increases in bonuses this year.
"Year-end bonuses can show employees that their hard work throughout the year is valued and that they are appreciated by the organization," said Greg Scileppi, president of Robert Half, International Staffing Operations.
"Monetary bonuses, though, are not the only way firms can reward their teams. For firms who are not planning on awarding bonuses, or are looking to scale back from last year, nonmonetary perks like training opportunities, staff celebrations or additional vacation time can be an effective way to acknowledge and reward teams."
Founded in 1948, Robert Half is the world's first and largest specialized staffing firm. The Menlo Park, Calif.-based company has more than 350 staffing locations worldwide and offers online job search services on its divisional websites.