Fewer small business owners will reward their employees with bonuses this holiday season, according to the OPEN from American Express Small Business Monitor, a semi- annual survey of business owners. However, in the spirit of the season theyíre expected to give staff more time off. This holiday season, only 47 percent of small business owners say they will hand out bonuses compared to 54 percent in 2005. By contrast, 55 percent of owners surveyed plan to give the gift of time off, up 8 percent from last year. Interestingly, one third of business owners (36 percent) find they are frustrated in general with not having enough time themselves, up significantly from the spring (23 percent).
Overall, holiday gift budgets for clients and customers remained steady at $1,065 (on par with last year's average of $1,064 and up from $923 in 2004).
"Despite a strong economy, the survey shows that small business owners have felt a financial pinch from higher gas and energy costs," Alice Bredin, OPEN from American Express small business advisor, said in a release. "Cautious about the future, they are keeping a watchful eye on their money, investing where it matters to grow the businessócustomer service, technology, and in particular health benefits for employees (71 percent vs. 54 percent last year). Perhaps this explains why fewer appear to have dollars for raises and bonuses this year."
More owners from the North East (60 percent) plan to give year-end bonuses to their staff than their counterparts in other regions of the countryó49 percent in the South, 45 percent in the West and 36 percent in the North Central states. And more owners from the South (68 percent) plan to thank their staff with time off versus 50 percent in the West, 47 percent in the North East and 46 percent in the North Central states.
Of those surveyed, 58 percent of small business owners in the South will have a holiday party for their staff, with plans for merry-making also happening in the North Central states (54 percent), the North East (52 percent) and the West (47 percent).
Some respondents intend to recognize their employees with raises (36 percent in the South, 28 percent in the North East and North Central and 24 percent in the West) and gifts (58 percent in the South, 56 percent in the North East, 48 percent in the North Central and 44 percent in the West).
For more information about OPEN, visit www.open.com.
