Only 3 in 10 firms plan to give annual bonuses

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Only 3 in 10 firms plan to give annual bonuses

Only three out of 10 Korean companies are planning to give employees annual performance bonuses this year.

Out of 503 companies surveyed by online recruitment company Saramin, 62.6 percent said they were not planning to reward year-end performance-based bonuses this year.

According to a report released Thursday, some 40.6 percent of respondents said it was due to their companies’ “poor financial standing.” Another 37.5 percent chose an “absence of relevant company policies” and 29.5 percent selected the companies’ “failure to meet performance goals set for the year.” Multiple answers were allowed.

Among the 188 companies that said they were planning to give out performance-based bonuses, 15.4 percent said they planned to hand out between 800,000 won ($706) and 1 million won per employee. Some 11.2 percent said they were planning to give 2 million won to 2.2 million won, while 10.6 percent answered that bonuses would be less than 400,000 won.

Conglomerates that said they would give out performance-based bonuses reported that they would reward an average 2.73 million won per employee, or 1.5 times more than the 1.76 million won average reported by small and medium-sized businesses. The average size of planned bonuses across all companies was 1.9 million won per employee, which is 21 percent less compared to last year.

When asked whether they were planning other perks to boost morale, 69.4 percent of all respondents answered that they would. Some 37.5 percent of respondents said they were planning an end-of-year party and 35.8 percent said they were planning company restaurant outings. Other perks included a raise in the upcoming year, gift sets, vouchers and extra holidays. Multiple answers were allowed.

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