End of year bonuses slashed?

The end of the year bonuses may come under question as the financial turmoil and current economic conditions have prompted employees to slash bonuses and turn to layoffs, according to Hay Group, a local management consultancy firm.

As companies tighten their belts during the tough times, they need to make cautious decisions, avoid hasty conclusions and consider long-term effects, according to Hay Group's Tom McMullen, US rewards practice leader. "Many companies are being more prudent with compensation and bonuses, but if employers don't play their cards right, they may find themselves without a full house when the economy turns around," he cautions.

"Wage trends and bonus trends have an impact on economic situations," Piotr Kalisz, senior economist at Citi Handlowy told WBJ. "We can assume that this year's financial results, especially for companies in the financial and export sectors will be poorer and the pool from which the bonus can be paid will be smaller."

However, he added that when it comes to non-financial services, employees can expect bonuses, but relatively small. (AO)