Record year for bonus cuts - 45% of professionals will get NOTHING

Of those professionals who typically receive an end-of-year bonus, a startling 45% will receive nothing in December or January, according to employers.

With 44% of professionals stating that they still believe they are ‘firmly on track’ for a bonus at the end of the year – it seems there could be a discord between employee expectations and what companies are willing to give.

The findings come from global talent solutions business Robert Walters newly launched Salary Survey guide.

Chris Eldridge, CEO of Robert Walters UK & Ireland:

“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.”

Return of Great Resignation

When asked what the leading reasons are for not being able to give end-of-year bonuses, leaders responded with:

-        Economic uncertainty and inflation (25%)

-        Reduced profit margins (36%)

-        Layoffs & workforce reductions (33%)

-        Change in compensation strategies (6%)

Two-fifths (40%) of managers are ‘concerned’ that the withholding of end-of-year / new year bonuses will result in a spike in staff turnover in Q1 – similar to what was seen in 2021 labelled ‘The Great Resignation.’

In fact, over a quarter are ‘unsure’ whether they can confidently tell staff that bonuses will be a definite in 2025.

Indeed, additional research from Robert Walters’ benefits reporting revealed that three-quarters (78%) of UK professionals actually ranked ‘bonus schemes’ as the most important workplace perk – prioritising it above pension contributions, equity and commission.

Frustrated Employees

According to the Robert Walters poll, over two-fifths (41%) of professionals would ‘take steps to leave’ in the new year if they aren’t given their anticipated pay rise, bonus or promotion.

Interestingly, 32% have stated that they would be willing to ‘move for the same amount of money,’ a further third stated they would ‘take less’ so long as their new organisation gave them more purpose, recognition in their hard work, or flexibility.

Chris concludes:

"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 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 fostering a culture of transparency, purpose, and flexibility has never been more critical to retaining top talent."

ENDS