Corporations reining in vacation bonuses

Companies reining in holiday bonuses


Last year, bonuses were bountiful. This year, economic uncertainty is bringing a chill to the holiday-season perk, according to survey data released Thursday by Challenger, Gray & Christmas.

More than 81% of the 252 employers surveyed by the outplacement firm said they planned to freeze the value of holiday bonuses at the same level of last year, while a growing number of companies said they would forgo a bonus altogether.

Nearly 27% of companies surveyed said they wouldn’t give a bonus, which is up from 23% in 2021.

“We’re clearly seeing some softening in the labor market,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, told CNN. “Companies are more concerned about an economic recession or a slowdown coming in the next quarter or so, and you’re starting to see that show up in some of these indicators.”