Survey: Bonuses Differ Significantly by Region

November 16, 2004 (PLANSPONSOR.com) - Christmas bonuses will be more prevalent in the Northeast this year, while the West will see the lowest level of such extra payments.

Geography seems to play a large role in bonus allocation, according to the 2004 Small Business Monitor by OPEN for American Express. While in the Northeast 58% of small firms expect to give bonuses, the numbers shrink the farther West one goes, with the South (56%), the North Central (46%), and the West (40%) all giving smaller bonuses than their Eastern counterparts. Overall, 51% of small firms plan to give employees bonuses.

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Geography also relates to the number of raises being given this Christmas season, although not in the same way as was seen with bonuses. Overall, 26% of employers plan to give raises, with those in the North Central district most likely to do so with 29% reporting that they will. The Northeast (27%), the South (25%), and the West (22%) all follow.

Overall, however, forms of Christmas celebration are up at small business this year, with 82% of firms planning to celebrate, up from 78% last year. Fifty-three percent say they plan to celebrate with a holiday party, while 47% plan to give employees time off.

Small business owners also plan to reward customers and clients more this holiday season. Sixty-nine percent reported that they plan to buy gifts, compared to 57% last year. Their budget, however, has shrunk somewhat, with $923 being allocated on average for such expenses this year, down from $966 last year. Cards or calendars are the overwhelming choice (41%), followed by gift certificates (24%), food baskets (20%), and flowers or plants (9%).

Volunteerism is also a common theme, although women business owners are much more likely to organize a group volunteer effort than men. Twenty-nine percent of women claim they will organize such an effort, while only 14% of men say they will do so.

The OPEN Small Business Network Monitor is based on a sample of 773 small business owners/managers of fewer than 100 employees.

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