Yearly Bonuses
As with salaries, bonus participation is up year-on-year, and so is bonus size. The result is a workforce that is more likely to benchmark outcomes more closely and react quickly if they feel under-rewarded. Firms that can make the connection between their employees’ contribution and their payout more transparent, whether through clearer individual target setting or better communication around how discretionary decisions are made, will be better positioned to retain performers who feel their effort should be showing up in the number.
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:
Sales & Trading
Investment Management
Insurance & Actuarial
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
“It was another strong year in the markets, so it makes sense that more people got a bigger bonus. A lot of it comes down to capital markets revenues - when there are more deals happening, more companies merging or being acquired, that has a knock-on effect across a lot of teams and business units within finance. The tide rises, and people see it in their year-end pay.”
Ben Hodzic, Managing Director - Selby Jennings USA
QUESTION 10
If you did not receive a bonus, what was the primary reason why?
42%
No company/department bonus policy
30%
Negative company performance
12%
Economic implications
9%
Targets not met (team)
7%
Targets not met (individual)
Bonus Expectations
The proportion of professionals who said their bonus was in line with expectations has dipped slightly to 68%, down from 70% last year – but this notable given that the value of bonuses has also increased. The gap between what was paid and what people expected is particularly wide in investment management, where 66% of respondents felt their bonus was below the market average. This is the risk that comes with a strong year, as expectations move upwards before pay does.
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
“With the market as competitive as it is right now, bonus is not just a reward - it is a retention tool. People know what a good year looks like in their sector and they are benchmarking their payout against it. When there is a gap, they start looking. The companies that are proactive about communicating how bonus decisions are made - and delivering on them - tend to hold onto their best people better than those who treat it as a black box”
Ryan Mazza, Managing Director - Selby Jennings USA
Expert Brands
