McCormick & Co. is the latest employer to hand out bonuses to its employees, citing the financial savings from the GOP tax reform bill.
The spice-maker, which has roughly 8,000 employees, said Tuesday it’s offering one-time $1,000 bonuses to eligible hourly workers in May. A portion of the company’s savings from tax reform also will go toward increasing hourly employee wages.
The company says it hopes the compensation benefit will help in its efforts to attract and retain talent.
“At McCormick, we take a long-term view of the people in our organization,” Lawrence Kurzius, the company’s chairman, president and CEO, said in a statement. “We want McCormick to be a great place for people to come work and have engaging and fulfilling careers.”
McCormick joins hundreds of companies that have made significant changes to their benefits packages or implemented one-time bonuses due to tightening labor markets and the Tax Cuts and Jobs Act of 2017, which slashed the corporate rate to 21% from 35%.
Bonuses are a popular way for employers to share tax reform savings with employees. Of firms that have made changes to benefits packages since the legislation, 65% have gone the route of handing out bonuses, according to a survey from executive compensation consultancy Pearl Meyer.
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