Year-End Bonuses Shrink 21% in Sign of Turbulent US Economy
Annual payouts declined in every industry, even those hard up for talent, according to small-business payroll provider Gusto.
Cash bonuses will be smaller this year.
Photographer: Samsul Said/BloombergUS workers are getting smaller bonuses, a sign that belt-tightening employers aren’t as concerned about losing talent as in recent years.
The average cash bonus paid to employees last month was $2,145, down 21% from the previous year, according to payroll software company Gusto, which tracks payments made by more than 300,000 small businesses. Every industry posted a decline, ranging from 3.8% for technology firms to 36% for tourism and transportation companies. Not only were bonuses smaller, but fewer workers got them in most industries. Small businesses employ nearly half of all private-sector workers in the US, according to government data.