Randstad have published an insight into bonuses in the construction, property and engineering industry in Malaysia region. They say that while bonuses are not required in many workplaces, it is still common tool throughout different industries in the country. They add that bonus standards vary between organisations and industries, and can be given out in a lump sum or in phases throughout the year like a quarterly or half yearly bonus.
“Bonuses are often a highlight of the year for many employees,” write Graham Whitworth and James Pickett, team leader and associate director of construction, property and engineering respectively. However they note that for those yet to receive a bonus, they might want to calm down their spending - as the expectation is for lower bonuses to be paid out this year compared with last year.
Randstad Malaysia surveyed 520 construction professionals in Kuala Lumpur and have seen a slight decrease in what people received in bonus 2017 versus 2016. There are couple of benefits for companies when they choose to pay bonus for their employees. First, it is nice to think of a bonus as a job well done, a chance to share in the success of the company and to redistribute the wealth.
The authors note:
? Firstly bonuses function as a motivational tool for the year - work harder, smarter and expect a bigger bonus. With the potential of earning bonuses, employees are more likely to strive to surpass their set targets, boosting company results and creating a culture of high performance.
? Secondly it is a retention strategy for the employers - why let your exceptional talents go? Great employees can be retained within a company with bonus payouts.
Year Respondents who received 2+ months bonus
Companies with a great reward package tend to have a lesser attrition rate as compared with companies that do not provide an attractive rewards package. But like any shrewd business leader bosses and HR directors are trying to minimise bonuses so they are just enough to keep staff motivated and stop them from looking elsewhere.
“The construction industry as a whole is performing well and undergoing growth at a sustainable and positive rate,” say Whitworth and Pickett. “We are seeing the effects of less confidence and uncertainty play their part - and we think business leaders are confident they can keep their teams motivated on slightly less.”