But more than half are planning to offer just the same, or lower, amount
A new Robert Half Canada survey has found that almost all (92 percent) of Canadian companies are planning to provide year-end bonuses, but more than half will offer the same or lower amounts compared to the previous year. The survey found that only 45 percent plan to offer more than last year, 39 percent will maintain the same amount as in 2022, and 8 percent intend to provide less.
“Most companies are running lean, under-staffed, and are challenged with hiring new staff. Because the economics have changed, they’re not giving as much as last year or the year before, which is not surprising, but companies are still facing significant hiring challenges,” says Sandra Lavoy, regional director at Robert Half Canada.
Lavoy emphasizes that even if cash bonuses are challenging, alternative forms of recognition aligned with budget constraints can contribute to staff retention in a competitive labor market. This may include offering perks such as remote work options, additional days off, or extended holiday breaks.
Despite the intentions to distribute bonuses, the survey noted that not all Canadian workers would benefit equally, as bonuses often targeted specific teams or employees at certain seniority levels.
The need for financial assistance
It is worth noting that the need for financial assistance among Canadians has only intensified this year, with a National Payroll Institute study indicating a 20 percent increase in financially stressed individuals — that’s comprising 37 percent of working adults.
“What’s changed is the cost of living and the higher interest rates, which are eating up much more significant portions of their income,” says Peter Tzanetakis, president of the National Payroll Institute.
The study highlighted the potential impact of financial stress on job performance, as 40 percent of those experiencing such stress reported a direct correlation. To alleviate financial stress, Tzanetakis recommended employers consider implementing programs supporting sound financial management, such as savings and pension plans matching employee contributions.
While financial incentives — especially cash bonuses — are key motivators for employees, Hannah Yardley, chief people and culture officer at Achievers, highlights that a strong sense of belonging, benefits, and career development support are crucial elements alongside monetary rewards.
“Bonuses and recognition should come in multiple forms. The year-end bonus is a great longer-term orientation, but you also need to support people throughout the year,” Yardley says.
