HR Fred Heritage · 1 December 2017
More workers to be rewarded this Christmas as employers fear skill shortages
Employers will work harder than ever to retain staff this Christmas, as new research has shown UK firms are spending millions on end-of-year bonuses and parties. To counter the threat of skill shortages in 2018, a recent study by the Prepaid International Forum (PIF), revealed a 23 per cent rise in the number of employees due to receive a festive reward or bonus this year. A poll of more than 2, 000 British workers by the not-for-profit trade association found that just over a fifth were in line for a Christmas bonus, compared to just 14 per cent last year and only seven per cent in 2014. Retail gift cards and rewards schemes were found to be increasingly popular forms of rewarding staff by employers at the end of the year. One4All Rewards, a leading corporate incentive scheme provider and member of the PIF, reported that sales of multi-retail gift cards and rewards schemes had gone up by 25 per cent compared with the same period a year ago. However, this seasonal generosity was revealed to be more about business goals than spreading Christmas cheer. The study showed that employers? main motivation for rewarding staff with bonuses was to retain them, after a year dominated by Brexit uncertainty and concerns over skill shortages. HMRC seasonal rules allow employers to throw staff a tax-free Christmas party A spokesperson for PIF, Alastair Graham, said in a statement: Christmas is a traditional time to show workers that you appreciate their efforts and provide a little extra to help them celebrate and enjoy themselves over the festive period. our study shows that businesses increasingly understand the importance of retaining their best staff and the impact that providing an annual thank you? has on loyalty and motivation.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.