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Australia – Healthy bonuses for commerce and industry professionals

27 August 2015

Three-quarters (77%) of professionals working across Australia’s commerce and industry market received a bonus in 2014/2015. With 45% receiving a higher bonus than the previous year, 32% of this group advised that their bonus increased significantly compared with last year, according to the Morgan McKinley Bonus Survey.

Matt Jacobs, Associate Director, Finance & IT at Morgan McKinley Australia, commented: “Given the increase in recruitment activity over the last 12 months it’s not surprising that the eligibility for bonuses were more common and in many cases had increased on 2014.”

“For employers to retain and attract the top talent in the market it’s important that the bonus component of their remuneration package is competitive. Many organisations have become leaner through the Global Financial Crisis and in several cases are beginning to deliver better results in comparison to a few years ago, which is also having a positive impact on bonus pay-outs.” 

Nearly half (48%) of respondents were satisfied with their pay-outs; with the rest either neutral or dissatisfied with their bonus. The satisfaction level seems to be higher in Media (57%) and Telecommunications (55%), whilst Retail, Fast-Moving-Consumer-Goods (FMCG) as well as Healthcare and Pharmaceuticals were between 42% and 47%.

Mr Jacobs explained that whilst there is some truth that some sectors generally offering higher bonus pay-outs compared to others, it is subjective. There are high performing companies across all sectors, which can also upset the status quo if their industry is underperforming.      

Almost three-quarters (72%) received a bonus between 1% and 20% of their annual salary, whilst a quarter of respondents received between 20% and 70%.

Half (48%) of survey respondents felt their bonus was in line with their peers, while 24% felt there was parity when compared with other organisations.

When considering a new role 58% of respondents stated that the entire compensation is the most important factor, whilst 24% consider just the basic salary, and only 8% said they had other motivations.

Mr Jacobs concluded: “This analysis certainly shows that whilst many factors have an impact on the decision as to whether someone accepts a new role, compensation is still a major consideration.  Many organisations continue to have strict guidelines in place when it comes to negotiating salary packages, those that can offer a lucrative bonus structure and or demonstrate recent bonus payments will certainly have an advantage when attracting top talent in the market.”

To access the full report, click here.