How to prevent churn after bonus season hits
As bonus season looms and employees often consider moving on, employers will be thinking about ways to retain the best of their talent.
Bonuses alone aren’t always sufficient to keep staff but a broader wellness policy could go some way to persuading them to stay on.
The post-bonus exodus
Employees who leave after a year-end bonus were already planning on leaving. The bonus was just an incentive to stick around a little longer.
It’s like hitting a milestone - they’ve worked hard, got their reward, and now feel free to explore other opportunities.
Without a connection to broader benefits, such as career development or wellness programmes, they can start feeling undervalued.
A survey by Benenden Health found that 32% of employees prioritise a positive workplace culture, and 22% value training opportunities, both ranking higher than bonuses at 17%.
Money may be nice, but it doesn’t make up for feeling disengaged or overlooked.
Then, there’s the bigger matter of stress and burnout. After a tough year, unresolved issues like job dissatisfaction or overwork can bubble over.
For some, a bonus can act as a clean break, prompting them to search for a healthier work environment.
Kate D’Camp, former VP of HR at Cisco, said: “In 30 years, I have yet to see a retention bonus retain, let alone motivate, anyone.”
Tackling these deeper issues is the real key to keeping your team happy and engaged.
Why bonuses aren’t enough
Bonuses often fall short because while it might give employees a temporary boost, they don’t address what truly matters: job satisfaction, growth, and feeling valued.
On top of that, they’re a significant expense for companies, with little long-term payoff if employees leave shortly after.
To put it into perspective, in 2024, the average UK full-time worker received a bonus of £2,000 (including those who received no bonus).
With an average gross income of £36,611, bonuses accounted for around 5.5% of total pay, a significant additional expense on top of an employee’s monthly salary.
While generous, this costly incentive offers no guarantee of increased retention or productivity without addressing deeper employee needs.
And let’s not forget that competitors offering better pay and perks can quickly make your bonus look less enticing.
Rather than relying on financial rewards alone, it’s worth investing in a benefits strategy that delivers year-round value and keeps employees engaged.
How wellness benefits drive retention
When done strategically, wellness benefits are a game-changer when it comes to retaining employees.
They address some of the most pressing needs your team has and show that you genuinely care.
Not only do they help tackle burnout by offering resources like counselling and mindfulness apps, but they also support a better work-life balance with fitness programmes and wellness initiatives.
By prioritising wellness, employers are offering tangible support that shows employees you value their health and happiness, building a culture of trust and loyalty that encourages people to stick around.
And it’s not just employees who benefit. Companies see gains too.
The Return On Wellbeing report found that 99% of HR leaders say wellness programmes enhance productivity.
Plus, wellness initiatives often deliver a fantastic return on investment.
The report also revealed that 56% of companies see more than double their investment back, with 24% achieving a 2.5x ROI.
This is not just down to cash bonuses.
Addressing specific needs, such as women’s health at work, can have a profound impact on employee satisfaction and retention.
Tailored initiatives that support areas like maternity care, menopause management, and general well-being create a more inclusive and positive company culture.
Tips for retaining employees after the bonus
If you’re wondering how to keep your team motivated and loyal after bonus season, here are some practical steps:
- Adopt a wellness-first approach: Offer holistic wellness benefits such as gym subsidies, mental health support, and mindfulness programmes.
- Communicate year-round value: Ensure employees understand and engage with the benefits available to them.
- Prioritise regular check-ins: Schedule frequent feedback sessions to address concerns and build trust.
- Recognise contributions beyond bonuses: Celebrate achievements through non-monetary rewards like extra leave or public recognition.
- Foster growth opportunities: Provide learning and development programmes to keep employees invested in their futures within the company.
These actions not only improve retention, but add a sense of belonging and purpose to the general workplace atmosphere.
Bonuses alone won’t keep your top talent. To truly retain your best people, you need to look beyond payouts and address their deeper needs.
By focusing on wellness and creating a comprehensive benefits strategy, you’ll not only reduce turnover but also foster a loyal, engaged workforce.
Ready to get started? Let Wellhub help you build a retention strategy that works year-round.
Supplied by REBA Associate Member, Wellhub (FKA Gympass)
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