Businesses Plan Fewer Bonuses, Gifts this Holiday Season

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The poor economy is having effects that include more than terminations and service cut-backs. Employers are getting more stingy about holiday bonuses and gifts to employees. From the Associated Press:

A recent survey of small business owners or managers showed fewer of them planning gifts or cash for their workers.

“Business owners are still feeling pinched cash wise,” said American Express business adviser Alice Bredin. AmEx’s small business division conducted the survey.

Last year, 44 percent of those surveyed said employees would get an end-of-year bonus. This year, only 31 percent did. Even fewer are planning raises: 16 percent, compared with 30 percent last year.

Meanwhile, in 2008, 46 percent of owners or managers said employees would get holiday gifts. This year, it’s 35 percent.

The business owners or managers surveyed oversaw companies with fewer than 100 employees.

The survey also found that, of those still giving a present, 42 percent said they’ll give fewer or cheaper gifts to customers and employees.

The random survey of 500 small business owners or managers was conducted over the phone from Oct. 6-14. It has a margin of error of plus or minus 4.4 percentage points.

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