Christmas bonuses rarer than ever

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Wed, 21 Dec 2011 6:29p.m.

Christmas bonuses are becoming a thing of the past

Christmas bonuses are becoming a thing of the past

By Dan Parker

If you received a work Christmas bonus this year, you were one of the lucky few.

Business New Zealand, which represents 70,000 employers, says bonuses are fast becoming a thing of Christmas past and the majority of the nation’s workforce won’t be receiving them.

Some businesses are keeping the tradition alive - Maori TV rewarded almost its entire staff with $1,000 each, while seven senior managers got to split $145,000 between them.  

Maori Party co-leader Pita Sharples says Maori TV staff “really deserve it, because there's a lot of pressure placed on them to perform, and their ratings went up… New Zealand must be proud that they did so well”.

Large companies like Air New Zealand and BNZ didn't pay bonuses but have given staff presents, while Telecom told 3 News its team got nothing.

Business NZ CEO Phil O'Reilly says Christmas bonuses are now the exception, not the rule, and “tend to be team based or individual based, and… will more often than not be based on a particular target being hit”.

He says staff receiving bonuses just because it’s Christmas is “becoming pretty rare these days”.

Many employers now favour bonding activities over bonuses at Christmas time, Mr O’Reilly says, and the Human Resources Institute's Beverley Main says those who choose to give need to do it carefully.

“It's got to be genuine and it's got to be fair,” she says.

“It shouldn't really be that the senior managers get lots and the people who do the work at the coalface don't get very much at all – it should be reflective of the contribution people make.”

However, the bottom line for most companies though is that tough economic times mean they're simply not in a position to hand out Christmas bonuses.

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Comments

21 Dec 2011 08:33p.m.

Mike wrote:

“It shouldn't really be that the senior managers get lots and the people who do the work at the coalface don't get very much at all – it should be reflective of the contribution people make.” And what did Maori TV do for their 7 senior managers!! $145,000 split 7 ways not a bad bonus, but the poor guy on the coalface only got 1 grand, now TV 3 reporters there is a good story for you to follow up, what happened there??

21 Dec 2011 08:05p.m.

Ruz wrote:

What was Phil O'Reilly's bonus worth?

21 Dec 2011 07:45p.m.

Alex wrote:

it's interesting how the narrative on the economy is slowly changing from "the recovery is coming, the recovery is coming" to "this is the new status quo, suck it up."

21 Dec 2011 07:18p.m.

Homer wrote:

These days bonuses are only for the top, and basically those at the top are getting everyone's share.