52 per cent of SMEs are still paying staff bonuses

Amidst talk of recession, massive consumer debt, and recent retail gloom, surprisingly 52 per cent of SMEs are still paying their staff annual bonuses.

According to new research, businesses with more than 200 employees are the most likely to give their staff an annual bonus. The research is part of a bi-annual survey of SMEs carried out by GfKNOP for analysis by an independent think-tank of entrepreneurs, the Tenon Forum.

Although 52 per cent of SMEs will have rewarded staff with bonuses last year, there is a clear division between large and small businesses. 70 per cent of businesses with more than 200 employees say they will reward their staff compared to only half of the companies that have between 5 and 199 employees.

Manufacturing industries and financial or business services companies are the most generous with 61 per cent and 57 per cent respectively saying they intend to pay annual bonuses to their people. Of these, 19 and 26 per cent respectively say they’ll be increasing bonuses. Workers in the transport and communications sectors are worst off with only 35 per cent of bosses saying they’ll be paying bonuses.

Companies in Wales and the South West, as well as Scotland are planning to be particularly generous with 26 per cent and 23 percent respectively intending to pay more this time than last. Businesses in London and the South East are less optimistic. While more than half (55 per cent) say they plan to pay bonuses, only 13 per cent say these will be more than last year and 23 per cent say they’ll be paying less.