20.03.2024 – The challenges and expectations in today's labour market call for a differentiated view of what motivates employees and employers. The Robert Walters Salary Survey 2024, conducted among more than 500 specialists and managers in Germany, sheds light on the decisive factors that will characterise the recruitment market in 2024. It focuses on the role of bonus payments and the associated expectations.

Employer perspective

Skills shortage and the search for talent

From an employer perspective, 88 % of managers express concern about the skills shortage. One of the biggest hurdles in recruiting staff is the excessive expectations regarding salary and benefits, as 67 % of employers confirm in the salary survey. In addition to salary, flexible working models (68 %), company cars (50 %), holiday arrangements (46 %) and company pension schemes (40 %) were highly rated by respondents. These preferences put companies under pressure to put together attractive offers to compete for talent.

Employee priorities

The decisive role of bonus payments

A key finding of the Robert Walters Salary Survey is that 66 % of employees consider bonus payments to be a decisive factor in their next job choice. However, 44 % of the employees surveyed do not expect to receive a bonus this year. This shows the untapped potential of bonus schemes for employers.

Decline in bonuses

According to the study results, there has been a marked decline in both the likelihood of bonus payments and their amount, particularly at senior management level. While 76 % of companies still stated in 2023 that it was likely or very likely that senior management roles would receive a bonus, this figure fell to around 59 % in 2024. In addition, the amount of bonuses paid in senior positions has decreased significantly. While bonuses amounting to 20 % of salary were still being awarded in 2023, the study predicts that only between 6 % and 10 % of salary will be paid in 2024.

This development underlines a clear trend towards lower bonus payments across all hierarchical levels, although the impact is particularly noticeable at management level.

Talent retention and recruitment strategies

While alternative incentives such as career development opportunities and flexible working conditions are important components of a comprehensive employee strategy, Thomas Hoffmann, Senior Director North at Robert Walters, particularly emphasises the importance of flexible and individualised bonus programmes. Hoffmann sees these as a key factor in recognising excellent performance and promoting performance-related remuneration.

Hoffmann emphasises that despite the need to cut costs in the current uncertain economic climate, a well-thought-out bonus system is an effective means of attracting and retaining employees. "A bonus system is not only a form of recognition and reward for the current commitment and contributions of employees," says Hoffmann, "it also conveys appreciation and motivates future performance. If employees feel valued, they are more willing to continue their efforts and thus contribute to the long-term success of the company."

Hoffmann also points out the economic efficiency of bonus payments: "The cost of replacing an employee can be equivalent to 6-9 months of their salary. In comparison, a bonus often represents a lower cost factor." This perspective makes it clear that investing in employees through bonus systems not only increases employee satisfaction and loyalty, but also makes sense from a business perspective.

Recommendation for companies

Flexibilisation and individualisation of bonus programmes

Against this background, it is advisable for companies to strategically realign their bonus programmes. The introduction of customised bonus programmes not only strengthens the company's position in the competition for qualified specialists, but also promotes a culture of appreciation and motivation. This approach enables companies to achieve long-term employee loyalty and ensure sustainable success together.

You can find more labour market and salary trends in our latest salary survey.