{"id":11614,"date":"2018-12-11T14:08:38","date_gmt":"2018-12-11T14:08:38","guid":{"rendered":"http:\/\/www.instantoffices.com\/blog\/?p=11614"},"modified":"2018-12-18T06:41:43","modified_gmt":"2018-12-18T06:41:43","slug":"what-do-uk-holiday-bonuses-look-like","status":"publish","type":"post","link":"https:\/\/www.instantoffices.com\/blog\/featured\/what-do-uk-holiday-bonuses-look-like\/","title":{"rendered":"What Do UK Holiday Bonuses Look Like?"},"content":{"rendered":"

According to figures from the Office for National Statistics<\/a>, the average bonus paid per employee in the 2017 financial year was \u00a31,600, with UK employees collectively earning \u00a346.4 billion in bonuses that year, the highest record and an increase of 6.5% compared with the previous financial year. This is an 11.3% increase from the peak in bonuses in the financial year 10 years ago.<\/p>\n

And the areas with the most generous employers?\u00a0 It seems the largest contributor to the level of bonuses was the financial and insurance activities industry, at \u00a315.0 billion, an increase of 9.7% over the previous financial year.<\/p>\n

Which Jobs Offer the Highest Bonuses?<\/span><\/h2>\n

There are some jobs that pay cash bonuses that are far above the average, like enterprise sales managers who, according to job site Glassdoor<\/a>, can earn annual bonuses of up to \u00a355,000, which is almost double the UK\u2019s national average of \u00a328\u00a0200.<\/p>\n

Interestingly, kitchen designers also top the list of high earners, receiving larger bonuses than CEOs. On the other end of the spectrum, people employed in health and social work had the lowest average bonus of close to zero.<\/p>\n

The roles with the highest annual bonuses are:<\/strong><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0 Enterprise sales manager – \u00a355\u00a0000
\n2.\u00a0\u00a0\u00a0\u00a0 Global account manager – \u00a333\u00a0500
\n3.\u00a0\u00a0\u00a0\u00a0 Partner – \u00a330\u00a0000
\n4.\u00a0\u00a0\u00a0\u00a0 Chief operating officer – \u00a330\u00a0000
\n5.\u00a0\u00a0\u00a0\u00a0 Chief financial officer – \u00a330\u00a0000
\n6.\u00a0\u00a0\u00a0\u00a0 Kitchen designer – \u00a326\u00a0500
\n7.\u00a0\u00a0\u00a0\u00a0 Chief technology officer – \u00a325\u00a0000
\n8.\u00a0\u00a0\u00a0\u00a0 Chief executive officer – \u00a325 000
\n9.\u00a0\u00a0\u00a0\u00a0 Channel manager – \u00a325\u00a0000
\n10.\u00a0 Business development consultant – \u00a323\u00a0500<\/p>\n

Read:<\/strong> What Salary Should You Be Earning At Your Age?\u00a0<\/a><\/p>\n

What Are the Benefits of Bonuses?<\/span><\/h2>\n

A year-end bonus is a good way to keep talented staff as it makes them feel valued, respected, and appreciated. It is also a good way to thank employees for the hard work they have done throughout the year, and is a gesture that will show employees how much you recognise and respect their efforts.<\/p>\n

Finding and retaining top talent is a tough feat for employers, so you need to be prepared to go the extra mile to keep the talent you do have. In fact, 48% of UK employers predicted not being able to hire suitable candidates to fill permanent positions in 2017, while 72% of businesses cite problems attracting skilled employees<\/a>. That said, an annual bonus can not only lift spirits but also give staff a reason to stay at your company.<\/p>\n

Improve Levels of Motivation<\/strong><\/p>\n

Holiday or year-end bonuses or monetary gifts can be used as a tool to motivate staff and propel them to achieve specific goals, meet targets or complete projects. These can act can important motivators that can benefit both the staff and the business as a whole.<\/p>\n

Read:<\/strong> How to Boost Employee Satisfaction Without a Raise<\/a><\/p>\n

What Companies Need to be Aware of When Gifting Holiday Bonuses<\/span><\/h2>\n

While a bonus is usually given by the discretion of a company, some restrictions still apply when handing it out at the office:<\/p>\n

Tax Implications<\/strong><\/p>\n

There will likely be tax implications associated with holidays bonuses in the workplace. Bonuses are not as simple as merely handing over a gift. Bonuses are taxable, just as any other payment would be.<\/p>\n

Policies<\/strong><\/p>\n

There may be policies put in place by your company regarding bonuses and gifts, so it is best to be aware of these policies before making promises to your team.<\/p>\n

Fairness<\/strong><\/p>\n

Bonuses can be a point of contention among staff members, especially if they feel they have been treated unfairly. Therefore, it\u2019s crucial to be fair when handing out bonuses or gifts or you could end up with some conflict in the workplace.<\/p>\n

If you are distributing bonuses to some staff and not others, you need to be prepared to answer any questions, while the amount you are dishing out to certain individuals may also come into question.<\/p>\n

Are There Holiday Bonus Guidelines?<\/span><\/h2>\n

Generally, the size of the bonus depends on the employee. Employees who make more money, have been at the company the longest, spend more time at the office or who play a fundamental role in the company will normally receive a more generous bonus than others.<\/p>\n

This does not mean that lower earning or new employees do not deserve a bonus, therefore an employer should consider the amount of time and effort an employee puts into their role. Employers can distribute bonuses randomly if the company can afford it, or the amount of the bonus can be specified by contract. It is also important that employers do\u00a0not let personal opinions influence the decision and that all staff receives a bonus relative to their role at the company.<\/p>\n

How much to give your employees as a bonus remains a tricky question, but what should be noted is that it should be meaningful to your staff. In addition, the amount must be fair on the employee and manageable for the business. The amount being paid as a bonus should be relative to the employee\u2019s earnings and role within the company.<\/p>\n

Bonuses can be structured according to:<\/strong><\/p>\n