In this series, manpower reporter Tay Hong Yi offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career. Get more tips by signing up to The Straits Times’ HeadSTart newsletter.
Q: My company hasn’t given me a bonus. Is that enough reason to quit?
A: Most medium- to large-sized companies in Singapore pay out bonuses, which are often pegged to an employee’s performance, says Mr Akshay Mendon, who leads the Singapore office of executive search firm EMA Partners.
However, the ability of an employer to award bonuses also depends on how the wider economy is performing, he adds.
“In the current climate, tech and construction-based companies will see subdued or no bonus cycles, while employees in sectors such as energy and life sciences will still receive a fair bonus,” says Mr Mendon. “In the Singapore market, bonuses have been a common feature as a retention tool for most product sales companies.”
Ms Lim Chai Leng, general manager at recruitment firm Randstad Singapore, says that it may be a breach of contract if one’s employment contract explicitly mentions a bonus as part of the compensation package, and the company fails to fulfil this obligation.
“Additionally, if you consistently meet or exceed performance expectations and have historically received bonuses, the absence of a bonus might be a cause for concern.
“It could signal a lack of recognition for your accomplishments or financial challenges within the organisation.”
Regarding the lack of a bonus as a factor in deciding whether to resign, Mr Mendon says heavy weightage should be given to it if the company lacks a well-defined bonus plan that is linked to employee performance.
“There are scenarios where companies give out discretionary blanket bonuses across the entire organisation, which go a long way in antagonising the employees who are putting in more effort.”
However, the lack of a bonus should be less of a consideration if the company has consistently given bonuses and the lack of one is an anomaly due to poorer economic performance, he notes.
Likewise, Ms Lim says that not receiving a bonus may not immediately warrant a resignation.
She advises employees to first try and clarify the situation through a transparent discussion with their manager or human resources team, should there be a lack of communication or unclear bonus criteria.
“If the lack of a bonus is accompanied by limited growth prospects, or your current compensation is significantly below market rates, it might be worth exploring other opportunities,” adds Ms Lim.
Meanwhile, managers should share any financial challenges or freeze on bonuses with their team as soon as they can, she says.
“Springing the news unexpectedly is only going to make the information more challenging to process.”
She adds: “Managers should also reassure their teams if this is a one-off event and the firm has consistently been paying bonuses.”
Furthermore, employers who are unable to give a bonus can still engage employees and retain them in other ways, notes Ms Lim.
“Employers should share what the company can offer in terms of non-monetary benefits such as career growth opportunities or other benefits such as financial management training or share options instead of cash bonuses.
“Increasing medical insurance coverage or dental and mental health reimbursements can also help alleviate financial pressures that the employee may face.”
Employers can also consider offering employee assistance programmes for personal and work-related challenges, which can go a long way in reassuring employees that their well-being is supported at the workplace, says Ms Lim. Such programmes often include financial support for counselling services and other measures to promote employees’ mental well-being.
Employers should also regularly acknowledge and appreciate employees for their hard work and contributions, such as through awards, small rewards like shopping vouchers or meal reimbursements, or additional days off, advises Ms Lim.
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