Are annual bonuses a thing of the past?

In some industries bonuses are a common part of a formal remuneration package for many employees – and can also be used to motivate and reward staff for good performance.

However, business leaders such as the fund manager Neil Woodford, are now openly turning their backs on monetary bonuses, suggesting they are no longer suitable in the modern business world.

Nicola Britovsek, Director of HR at Sodexo Benefits and Rewards Services, says that this growing trend raises the question; should more businesses be reassessing the way they reward their workforce?

She explains: “Financial bonuses can be highly motivational however, they can also become an expectation, meaning that the money only has a short term impact on the quality of work from staff. For some businesses, the move away from bonuses is down to tighter budgets caused by the current economic climate, but for others, it is a direct response to the shift in drivers amongst employees.