Effectively managing bonus expectations has become a crucial aspect of talent retention and company success throughout this year. As businesses develop, so do the expectations of employees regarding their performance-related incentives. It is vital to explore strategies and insights to navigate the complexities of bonus management, ensuring a positive balance between employee expectations and organisational goals as we approach bonus season.
Macro-economic shifts have a direct impact on the economy, creating a natural anticipation for bonuses among employees. Ongoing tensions between Ukraine and Russian and war in the Middle East, capital market fluctuations, and locally challenges with new regulatory frameworks, salary inflation, increased interest rates and tighter margins and the recent surge in Artificial Intelligence trends all contribute to the growing need for transparency around bonuses and expectations to be met. It is vital to provide clarity for employees regarding the reasons behind bonus amounts which helps establish a foundation for trust, loyalty, and engagement leading to retention and an understanding of the current position of the company.
Expectations for 2024 with Talent Retention
It is expected that 2024 will be a year of stability and show little or no growth in the sector in terms of large new entrants. There have been several start-ups within the sector, notably these companies have been hiring at a low level, with hires staying within the low double-digit figures. There will be a typical hiring of Heads of functions with little or no middle management necessary in the short or medium term. Businesses have been stable compared to profitability and meeting expectations.
According to Coopman’s Placement Analytics Report carried out in 2023, the length of individuals that stay in a position is not relative to seniority / level of position. After conducting research with our network, consulting top-tier C-Suite and management professionals, a substantial majority, up to half of the respondents have claimed that 25% of their job vacancies remain open since the start of 2023, signifying a talent shortage. Employee retention is key heading into H1 to promote growth and development within your organisation.
Advice to Clients
Effectively navigating bonus expectations with employees is vital for cultivating transparency and maintaining accountability, crucial elements in retaining top talent. When bonuses are not expected, skilful communication with the team becomes crucial. Maintaining open and transparent conversation is important for understanding the needs of your team. Locally across the sector, budgets are being / have been signed off and agreed for 2024, calculated, the key is to understand what the motivators of your staff are with career advancement and expectations. Sit down individually with each employee and understand their motivations in more depth. If you cannot pay out expected bonuses, what does this mean for the team and can you outline a long-term plan for employee satisfaction. As we approach bonus season, we’re excited to announce the forthcoming release of Coopman’s 2024 Industry Insights. This will include exclusive market insights within your sector; keep an eye out on our socials, newsletter and website insights page for more updates.
If you require guidance regarding your ongoing resource planning and addressing these challenging circumstances, please get in touch with Director and Co-Founder, Mark Fallon, at mark.fallon@coopman.ie
