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Administration December 4, 2002
Bonus "Bump" Modest
April 24, 2001 (PLANSPONSOR.com) -A growing practice
to award employee referral, hiring, or retention bonuses will
still only have a minor impact on a company's overall labor
costs, a new federal study says.
Reported by Fred Schneyer
The overall cost of these bonus plans amounts to no more than 2 cents per hour for any major industry or occupational grouping, said the study by the Labor Department’s Bureau of Labor Statistics (BLS).
With hourly costs for total benefits ranging from $2 to $7, an additional 1 to 2 cents should have virtually no impact on the BLS, Employment Cost Index. Government researchers use the employment index to monitor labor cost changes.
BLS officials said the tight labor market has brought heightened attention to compensation policies targeted to either attract or retain employees in occupations experiencing labor shortages.