By Roderick Abad, Businessmirror, Feb 23, 2017
EMPLOYEES are not too overwhelmed by the bonus they get from their companies as the employees perceive it to be very rewarding, JobStreet.com said.
As per the Bonuses Report 2017 of the jobs portal, only 51 percent of employees believe that the guaranteed bonuses they receive are on a par or even above their peers within the industry, as 75 percent of employers think as such.
For nonguaranteed bonuses, it’s actually of the same notion, wherein 43 percent of the former are saying they receive very good bonuses, as 65 percent of the latter feel they give more than the basic salary.
“So there is a disconnect in how employers and employees feel the bonuses, or how competitive their bonuses are,” JobStreet.com Philippines Inc. Country Marketing Manager Cielo Javier Sonza said during their announcement of the research findings at a media briefing in Makati City on Wednesday. “This is a message to employers [as] while they feel that they give bonuses, this is contrary to how employees feel about it.”
Guaranteed bonuses are the other dimensions to the compensation package assured by hirers to their recruits through an agreement or contract to provide on top of the mandatory 13th-month pay. Non-guaranteed bonuses, on the other hand, are entirely upon the employer’s discretion and are usually based on performance of the workers, the company, or both.
Across position levels, JobStreet.com found out that half of the 822 respondents—741 employees and 81 employers—receive additional one-month salary over their 13th-month pay. On the average, the middle management, with at least 10 years in the company, gets the most number of bonuses at almost plus four months. This is followed by the staff, who have been working with the company from zero to five years, at an average of 3.5 months; upper management, with over a decade of staying in the firm, at around 3.2 months; and those in the supervisory level, working between five years and 10 years, receive their bonuses at 2.8 months.
However, there is high incidence that there is no guaranteed bonus across all job levels since they are the call of the employers, according to the study. It is noted, however, that there is a more even or equal split between the rank-and-file to superiors who receive such compensation from zero to a month, one month to three months, three months or beyond. It is the personnel that get nonguaranteed bonuses at almost three months, and then two months for the rest of the levels.“What we can actually deduce from here is that, in terms of bonuses, both for guaranteed and nonguaranteed, it’s really used for attraction of employees in a company. One is the entry-level to attract them to apply and work for your company, or, in case of guaranteed bonuses, we see the highest bonuses from the middle management. So that means if they want to get experienced [employees] and attract them to move from one company to the next, they also use bonuses as a tool to attract,” Sonza said.
As to the magnanimity of hirers, the study revealed those in the retail sector are the “most generous” in giving guaranteed bonuses to their work force at an average of 4.34 months, then consumer durables and apparel at 4.05, and insurance at almost four months.
“In the Job Trends Report [of JobStreet.com], the second and third most in demand jobs are in retail and manufacturing. And that is actually reflected also in the bonuses because a majority of the jobs are generated there, of course, their bonus scheme should be attractive also because a lot are vying for those jobs,” the executive said.
Meanwhile, the “most prudent” is the software sector at a mean of 2.43 months, followed by the real estate that gives guaranteed bonuses at 2.42 months, and telco at 2.26 months.
For nonguaranteed bonuses, the most generous are those in the transportation and logistics field at 4.34 months, seconded by consumer durables and apparel at 3.32 months, and then materials/construction at 2.99 months.
Again for the jobs trend, we saw that for the first time, at least in 2016, transport is now part of the Top 10 most in demand. And if so, we assume that their attraction approaches or strategies, bonuses is part of that. The most prudent with one- to two-months bonus, we have real estate, education and the semiconductors at one month,” Sonza said.
In terms of location, for staff level, JobStreet.com said that most guaranteed and non-guaranteed bonuses are in Mindanao. This is because of a shift of jobs in the key cities outside of National Capital Region, she said, hence, the bonuses also follow.
“So that’s good news for us. A lot of development, a lot of investments coming from the BPO [business process outsourcing] sector, and from investments towards Philippine Export Zone Authority and Luzon,” she said. “But if we take a lot at other position levels, we now see also that the higher bonuses givers are in Luzon.”
The report further showed 30 percent of employees use keep their bonuses in their savings or checking account; 23 percent for buying something for themselves or loved ones; 21 percent to pay of bills and loans; 17 percent, invest in stocks, property, bonds, etc.; and 8 percent to pay for family’s educational needs.
JobStreets.com’s Bonuses Report was conducted in November 2016. This is aimed at aligning employers and employees on expectations with regard to bonuses. More so, it is done to inform the job market on current trends, sentiments, and standards with regard to bonuses.