Seven in ten (71 percent) employees who will receive a Christmas bonus would prefer a better benefits package instead, a survey has found.
This shift is more prevalent among younger workers with 80 percent of employees aged 18-34 prioritising benefits over festive bonuses.
Added to this, 57 percent of employees think that the money spent on a Christmas party could be better spent on their employee benefits package.
The research, from technology provider Zest, suggests that there is a strong preference among employees for longer-term financial support.
The research also found that just 8 percent of employees expect to receive a larger Christmas bonus than expected this year, while 60 percent of workers say they are not expecting a Christmas bonus at all.
More than two-fifths (44 percent) of employees added that they are not expecting a pay rise next year as a result of the hike in employer national insurance contributions announced in the Autumn Budget.
Survey results confirmed that some employers have already reduced pay rises this year as only 43 percent of employees said they had received the pay rise they were expecting in 2024.
The provider warned that employers who fail to provide adequate financial incentives risk lower staff morale and a hit to workforce productivity, as well as ultimately losing talent.
The provider said that employers need to ensure that they’re able to motivate and reward employees beyond their salary.
Matt Russell, CEO of Zest, said: “After yet another tough year, many employees appear resigned to not receiving the financial rewards they’re looking for from their employer.
“If pay stagnates or organisations are unable to offer bonuses they must ensure they are finding alternative ways to reward employees or they risk falling behind competitors. Employee benefits packages offer a cost-effective approach for employers to reward employees without salary hikes and ensure they continue to attract and retain key talent.”
