Yearly Bonuses
Bonus participation has increased year-on-year according to our survey data, with many respondents also reporting larger payouts. While positive, this was a steady season rather than an exceptional one, providing stability after the volatility of recent years. How bonuses are determined is where opportunity lies for employers. More professionals cited theirs was based on company performance than individual performance, making it harder to draw a direct link between their specific contribution and their payout. Firms that can build more individual-level transparency into their variable pay framework will find it has a positive effect on how valued people feel. It is also worth noting that the removal of the bonus cap in the UK, alongside changes to deferral rules for material risk takers, may begin to change expectations around bonuses in some functions.
QUESTION 7
Have you received a bonus in the past 12 months?
Yes
No
Not confirmed yet
Not eligible
Sectors most likely to have received a bonus:
Investment Banking
Investment Management
Sales & Trading / Financial Technology
QUESTION 8
How is your bonus determined? Select all that apply:
Company performance
Discretionary
Individual targets
Team targets
QUESTION 9
If you received a bonus, what was the value of the bonus you received, as a percentage of your base salary?
1-10%
11-20%
21-30%
31-40%
41-50%
51-60%
61-70%
71-80%
81-90%
91-100%
101%+
Not based on percentage
QUESTION 10
If you did not receive a bonus, what was the primary reason why?
46%
No company/department bonus policy
20%
Negative company performance
20%
Economic implications
9%
Targets not met (team)
5%
Targets not met (individual)
Bonus Expectations
Nearly half of surveyed professionals say their latest bonus was not in line with what they expected, and the majority believe their payout sat below what peers in similar roles received, revealing a workforce that has been paid but does not feel rewarded - a distinction that matters considerably for retention. But bonuses aren’t just a retention mechanism; used well, they are one of the strongest arguments for making a move. Digging further into the data, the pull of a higher bonus potential towards a new role is even stronger than the push of a disappointing one away from a current employer, and firms can use this to their advantage when hiring.
QUESTION 11
Was your bonus package in line with your expectations?
Yes
No
QUESTION 12
How do you believe your latest bonus compares to the wider industry for similar roles?
Much higher
Slightly higher
About the same
Slightly lower
Much lower
QUESTION 13
Would a reduced bonus be a contributing factor towards looking for a new role?
Yes
No
QUESTION 14
Would a higher bonus potential be a reason to accept an offer from a new company?
Yes
No
“What we tend to see after bonus season is a disappointing bonus being the final prompt rather than the root cause of a move - the dissatisfaction has usually been building for longer. By the time someone is ringing a recruiter in March, the real reasons are typically progression, recognition, and feeling undervalued over a sustained period. The firms that retain people through bonus season are the ones that have been having those broader conversations throughout the year, not just at year-end.”
James Warnaby, Managing Director - Selby Jennings London
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