For the third consecutive year and the seventh time since 2005, bonus pools for annual incentives will be under target. According to a new survey from Towers Watson, one in four North American employers will pay bonuses to workers who fail to meet performance expectations, even as bonuses are not fully funded.
According to Towers Watson, employers have only twice fully funded their bonus pool since 2005, once in 2006 (102%) and again in 2010 (111%). The survey reports that the average current projected bonus funding for this year is 87% of target, same as last year and below 2011’s 95%.
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