According to data from Cendex, part of XpertHR, the number of employees awarded a bonus in the last 12 months has increased. Between June 2021 and June 2022, 25.9% of individuals received a bonus, compared with 22% of individuals in the previous year.
The findings come amidst the ongoing cost-of-living crisis in the UK, which has raised concerns over salary and financial support provided to employees. The likelihood of a bonus being awarded has increased in the past year and the average value awarded across all individuals sits at £2,519.
However, gender disparities are also highlighted by the research. Female employees are less likely to receive a bonus, and those who do were found to receive less money than their male counterparts. The data shows that 31.3% of male employees received a bonus, compared to 23.7% of females. The findings also highlight how the gender pay gap goes beyond salaries; male employees were found to receive an average bonus of £2,907, compared to the average payment of £1,761 awarded to female employees.
This disparity was also found to widen with age. Bonus payments for men increase at a much faster rate than women and the growth in bonus values for women began to tail off as they hit their early thirties, compared to the early fifties for men. Men aged 50 received an average bonus of £4,929.23, over double the amount received by women the same age who received an average of £2,416.46.
Not surprisingly, both the value and likelihood of receiving a bonus increases with seniority. The research found that 38.5% of directors received a bonus, with an average payment of £61,006. A quarter (25.1%) of staff level employees received a bonus, but the average payment was just £1,282.
Bonus payments were found to be most likely paid to individuals in manufacturing and production (39.4% of individuals) or private-sector services (33.6%) organisations. Far fewer bonuses were made in the public services (11.7%) and not-for-profit sectors (10.4%).
Sheila Attwood, Managing Editor, Pay and Benefits, Cendex, said, “Given the current cost-of-living crisis and wider economic uncertainty, money is a huge source of stress for many workers. If an organisation is in the position to award a bonus to employees, it’s vital that they approach it fairly and with a strong understanding of why a bonus is being awarded at a given level.
“This is especially important given the disparity between men and women’s bonuses, which could be an indication of certain work being valued more than others.”