Growing Bonuses
 April 4, 2005

There seems to be a growth in the use of and the amount of bonuses for both associates and senior staff members. One-time signing bonuses and guaranteed year-end bonuses are a means for firms to increase the amount they can offer a candidate without going above their established salary scales. The impact is an increase among all employees in the class and, even though bonuses are growing a proportion of total compensation, the part of the bonus that actually is differentiated by personal performance seems to be declining.