Most small businesses won’t be paying year-end bonuses in 2008 because of the recession.
That’s according to a national survey by PayCycle, an online payroll service with more than 75,000 small-business customers.
In the random survey, 53% of resondents said they usually pay a year-end bonus to themselves, to
Jim Heeger, PayCycle
employees or both. However, of this group, 58% will not pay a bonus this year: 26% of owners are stopping all bonuses and 32% are cancelling their own reward so they can still pay employees, said PayCycle President/CEO Jim Heeger.
In addition to the bonus cut, 43% of small-business owners said they are either cancelling the annual Christmas party or toning it down. Click here to see what local businesses are doing about the traditional year-end celebration.
When asked which national issue had the most direct impact on their business in 2008, respondents said:
- slowdown in consumer spending, 32%
- credit crisis and problems in the housing industry, 21%
- decline in the stock market, 15%
- summer spike in gasoline prices, 18%
The remaining 14% of respondents gave a variety of answers ranging from lack of healthcare reform to the rise in unemployment.
A handful of respondents commented that their businesses had been spared from any negative fall-out from the economic crisis.
More about the economy…
What are other O.C. bloggers saying about small businesses…
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- Buy.com says it had biggest Black Friday. Ever.
This year we are all getting fruitcakes…. ever tasted fruitcake ?? It tastes like someones feet.
Well.. I just go my end of the year bonus yesterday (December 1). $14,500… I guess it just depends on the industry. I am an IT project manager for a large technology company. Delivered 2 projects on time and on budget. One project was worth $141 million.
If you are in retail.. you probably owe the company money!
Sniper ur funny…haahhahhhaa
The 32% of business owners who are canceling their own rewards so they can still pay employees understand that their talent is their secret weapon during this recession. Although unemployment rates are creeping up, any business owner knows that it’s difficult to find, keep and motivate good employees.
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[...] Most small businesses cancel year-end bonuses [...]
[...] Click here to read more about that survey. [...]
[...] A separate survey found most small businesses have canceled their 2008 bonuses. [...]