Polls Say: Bigger Year End Bonuses For Employees

NEW YORK (CNNMoney.com) — Employers are ramping up bonus payments this year to help retain the best workers as the economy slowly improves, according to a consulting firm survey released Thursday.

Challenger, Gray & Christmas, Inc., an outplacement consultancy, said 64% of employers are planning to hand out holiday bonus checks this year, up from 54% last year.

The poll of 100 human resources executives also found that more companies are planning to give bigger bonus checks this year.

A full 8% of the employers surveyed plan to increase the amount they award this year, compared with none last year.

While employers remain reluctant to expand payrolls, there is growing concern that job market improvements in 2010 could bring an exodus of workers, according to John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“Companies are not quite ready to ramp up hiring, but they are beginning to see the light at the end of the tunnel,” Challenger said in a statement.

Last week, the U.S. Labor Department said employers cut 11,000 jobs in October, which was far below any of the job losses posted over the last 23 months. The nation’s jobless rate improved to 10% from a 26-year high of 10.2% the month before.

Still, employers have cut 7.2 million jobs since the beginning of 2008. And most economists expect unemployment to remain high well into next year.

The dismal job market and the looming threat of layoffs has weighed on worker morale, Challenger said, and employers are hoping a bigger bonus will help keep their employees happy.