Employer Bonuses Are Going Away, and Pay Hikes Aren't Making Up for It

Companies have stubbornly withheld salary increases over the last several years, opting to "fatten the bonus pool" instead, reports the Boston Globe . Now, a new Aon Hewitt survey shows many firms are taking those bonuses away and ever-so-slightly hiking salaries. "Companies allocated 3 percent of their budgets to raises — a high since the recession — and they plan on allocating 3.1 percent of their budget to salary next year," Aon Hewitt researchers report. This finding is consistent with a Willis Towers Watson survey from earlier in the year. Meanwhile, bonus pay has decreased in 2018 and, along with it, total spending on compensation. Last year, companies allocated 15.7 percent of their total budgets to salary and bonuses, compared to 15.5 percent this year. Aon Hewitt polled 1,026 employers in June and July for its results.