According to employers, 2 in 5 professionals who usually receive an end-of-year bonus will get nothing this January. This follows the Robert Walters Benefits Survey, which found that 92% of employees view bonuses as one of the most crucial workplace benefits.
According to the 2025 Salary Survey guide, 43% of professionals believed they were 'firmly on track' for a year-end bonus. However, there seems to be a disconnect between employee expectations and what companies are willing to offer this appraisal season.
Martin Fox, Managing Director at talent solutions business Robert Walters Canada:
“This year’s bonus outlook reflects the economic pressures that many businesses are facing, with 2 in 5 professionals missing out on end-of-year bonuses. It’s a challenging reality for employees who, in many cases, remain optimistic about their performance and value to the company.
“For employers, clear communication is key. Misaligned expectations between professionals and their organizations can lead to disengagement and retention issues, especially at a time when attracting and keeping top talent is already a significant challenge. Companies that cannot offer financial incentives should consider alternative ways to recognize and reward their staff to maintain morale and loyalty.”
Return of the Great Resignation
When asked what the leading reasons are for not being able to give bonuses, leaders responded with:
- Layoffs & workforce reductions (35%)
- Reduced profit margins (31%)
- Economic uncertainty and inflation (20%)
- Change in compensation strategies (14%)
36% of managers are ‘concerned’ that the withholding of new year bonuses will result in a spike in staff turnover in Q1 – similar to what was seen in 2021 labelled ‘The Great Resignation.’ A significant 59% said that a lack of bonuses will drastically lower morale in the workplace.
Frustrated employees
According to the Robert Walters poll, 63% of professionals would ‘take steps to leave’ in the new year if they aren’t given their anticipated pay rise, bonus or promotion.
Interestingly, 27% have stated that they would be willing to ‘move for the same amount of money,’ with almost half (47%) stating they would ‘take less’ so long as their new organization gave them more purpose, recognition in their hard work, or flexibility.
Martin Fox, Managing Director at Robert Walters:
"We’re seeing a rare, yet concerning, situation brewing where employees, despite facing financial pressures themselves, may be willing to ‘take less elsewhere’ if they feel undervalued or overlooked during their next pay review.
“This is an unprecedented moment where the emotional and psychological aspects of work—recognition, purpose, and flexibility—are outweighing pure financial compensation. Employers need to recognize that withholding bonuses or promotions could lead to an erosion of trust and commitment, which, in turn, could fuel a wave of resignations. For businesses, offering financial rewards may not always be feasible, but creating a culture of transparency, purpose, and flexibility has never been more critical to retaining top talent."
ENDS
Contact Georgia Peglar
georgia.peglar@robertwalters.com
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