Close to half of professionals hoping for an end of year bonus will be disappointed, salary data has revealed.
Robert Walters’ Salary Survey with employers found that 45 percent of professionals will receive nothing in December or January.
However, 44 percent of employees believe they are ‘firmly on track’ for a bonus at the end of the year, which could mean there will be a mismatch between employee expectations and what companies are willing to pay.
Employers told the survey the main reasons for withholding a bonus included economic uncertainty and inflation (25 percent), reduced profit margins (36 percent), layoffs and workforce reductions (33 percent), and a change in compensation strategies (6 percent).
The impact of fewer bonuses than expected is a concern for managers, with 40 percent of them suggesting that it will drive a rise in staff turnover in the first quarter of 2025. This would be similar to employer experiences in 2021, which were dubbed ‘the great resignation’.
More than a quarter of employers said they are ‘unsure’ that they would be able to confidently tell staff that bonuses will be paid in 2025.
Further research from Robert Walters’ benefits reporting showed that 78 percent of UK professionals viewed bonus schemes as the most important workplace perk. The data showed bonuses were ranked above pension contributions, equity and commission in terms of importance.
With bonuses hanging in the balance for many, the data showed that 41 percent of professionals would ‘take steps to leave’ in the new year if they aren’t given their anticipated pay rise, bonus or promotion.
Just under a third (32 percent) said they would be willing to ‘move for the same amount of money’, while a further third said they would ‘take less’ as long as their new employer offered them more purpose, recognition in their hard work or flexibility.
Chris Eldridge, CEO of Robert Walters UK & Ireland, said: “This year’s bonus outlook reflects the economic pressures that many businesses are facing, with nearly half of professionals missing out on end-of-year bonuses—a trend we haven’t seen since the year of lockdowns or the financial crash. It’s a challenging reality for employees who, in many cases, remain optimistic about their performance and value to the company.
“For employers, clear communication is key. Misaligned expectations between professionals and their organisations can lead to disengagement and retention issues, especially at a time when attracting and keeping top talent is already a challenge. Companies that cannot offer financial incentives should consider alternative ways to recognise and reward their staff to maintain morale and loyalty.”
Eldridge continued: “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.
“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 recognise 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 fostering a culture of transparency, purpose, and flexibility has never been more critical to retaining top talent.”
