News Compensation
One-third of managers worry withholding bonuses will lead to another Great Resignation

There seems to be a significant disconnect between employee expectations and what companies are willing to offer this appraisal season.

According to the latest Robert Walters Benefits Survey, 92 per cent of employees view bonuses as one of the most crucial workplace benefits, and 43 per cent believe they’re “firmly on track” for a year-end bonus. However, employers report two in five professionals who usually receive an end-of-year bonus will receive nothing this January.

“This year’s bonus outlook reflects the economic pressures that many businesses are facing, with two in five professionals missing out on end-of-year bonuses. It’s a challenging reality for employees who, in many cases, remain optimistic about their performance and value to the company,” said Martin Fox, managing director at Robert Walters. “For employers, clear communication is key. Misaligned expectations between professionals and their organizations can lead to disengagement and retention issues, especially at a time when attracting and keeping top talent is already a significant challenge. Companies that cannot offer financial incentives should consider alternative ways to recognize and reward their staff to maintain morale and loyalty.”

Leaders reported a variety of barriers preventing them from awarding bonuses, including:

• Layoffs and workforce reductions (35 per cent)
• Reduced profit margins (31 per cent)
• Economic uncertainty and inflation (20 per cent)
• Change in compensation strategies (14 per cent)

Just over one-third of managers (36 per cent) report they are “concerned” that withholding bonuses will result in a spike in staff turnover in Q1 – similar to the Great Resignation of 2021.

These concerns aren’t unfounded. Six in ten professionals (63 per cent) reported they would “take steps to leave” if they aren’t given their anticipated pay rise, bonus or promotion.

Interestingly, 27 per cent of respondents stated they would be willing to “move for the same amount of money,” and almost half (47 per cent) stated they would “take less” so long as their new organization gave them more purpose, recognition for their hard work, or flexibility.

“We’re seeing a rare, yet concerning, situation brewing where employees, despite facing financial pressures themselves, may be willing to ‘take less elsewhere’ if they feel undervalued or overlooked during their next pay review,” said Fox. “This is an unprecedented moment where the emotional and psychological aspects of work – recognition, purpose, and flexibility – are outweighing pure financial compensation.

“Employers need to recognize that withholding bonuses or promotions could lead to an erosion of trust and commitment, which, in turn, could fuel a wave of resignations. For businesses, offering financial rewards may not always be feasible, but creating a culture of transparency, purpose, and flexibility has never been more critical to retaining top talent.”