Show me the benefits package

Workers are commanding benefits, bonuses and other paycheck-boosting goodies again.

By Julie Bort, Network World
July 26, 2004 12:12 AM ET

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	How to get great bonuses

	Bonuses by region

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Benefits packages and overall compensation have become the No. 1 and 2 considerations for respondents of the Network World Salary Survey when rating job satisfaction factors "critical" and "very important" (see chart, below). For the first time in two years, this means "challenge of work" has not taken the top spot. Clearly, insurance, bonuses, stock options and other types of compensation are becoming highly important again. If pay raises must limp along at less than 6% on average, then workers are looking for help with their cost-of-living expenses (such as medical). They're also eyeing that 8.2% average bonus increase to keep them happy.

When it comes to bonuses some titles were less rewarded, as were workers in some regions. Help desk trainers' bonuses fell 20.5%, bringing the total they expect in 2004 to a mere $620. Software and Web programmers expect to see their bonuses decrease 5.3% to $2,330. Regionally, companies in the Southwest remained stingiest with bonuses, rolling them back 9.2% to $2,650.

But areas of the country that are rebounding economically - New England, the West, the Mid-Atlantic - are planning to dish out decent bonus increases overall. The largest companies will grant the biggest bonuses, and, not surprisingly, employees who work the most hours expect to reap the best bonuses, too.

How to get a great bonus

Bonuses by region
New England is the region most generous with bonuses, paying out the largest average bonus, and giving the second largest percentage increase (after the West).

Grouping	2004 mean bonus	% change from 2003
New England	$4,380	18.4
West	$4,200	22.1
Mid-Atlantic	$4,030	10.4
South Atlantic	$3,940	7.4
Pacific	$3,660	0.8
North Midwest	$2,940	6.9
Northwest	$2,690	8.0
Southwest	$2,650	(9.2)
South Midwest	$1,680	10.5

Source: 2004 Network World Salary Survey

Bonuses by business size
Larger companies tend to have highly structured bonus systems and consequently pay out significantly bigger bonuses. Mid-sized companies with 100 to 999 employees are the tightest-fisted group.

Company size by number of employees	2004 mean bonus	% change from 2003
Less 100	$3,300	8.6%
100-999	$3,010	4.5%
1,000-9,999	$3,360	9.8%
10,000 or more	$4,310	9.4%

Source: 2004 Network World Salary Survey

Bonus by hours worked
Since bonuses are rewards, people who work more get the highest payouts. Worth noting is the highest bonus earners, senior executives, also work the longest hours.

Hours per week	2004 mean bonus	% change from 2003
Less than 45	$1,450	-5.2%
45-54	$3,160	9.0%
55+	$5,750	10.6%

Source: 2004 Network World Salary Survey

Just because your company has a bonus program, don't assume your staff knows how to make the most of it. These tips can help your employees get better bonuses.

• Make sure your employees truly understand how the bonus system operates. Some companies, particularly large companies, use standardized performance objective systems rather than the less rigid merit bonuses. Consider yourself lucky if your company uses a standardized bonus performance program, as more people tend to earn their bonuses under such systems.