More than half a million of the UK’s small businesses are due to pay out end-of-year bonuses to their staff this year, despite the credit crunch and poor high street sales.
According to a survey by Alliance and Leicester, 12% of the UK’s small businesses plan to pay out this year – that’s nearly half of the small businesses with employees in the UK.
And while workers in the City lament the loss of their Christmas bonuses, 95% of employees in small businesses are due to receive at least same amount of money as last year – with 39% being paid more.
Not being ones to conform to stereotype, small companies in Scotland are the most likely to be paying staff bonuses, with 20% planning to pay; compared to the scrooges in the south of England, just 7% of whom will be paying bonuses.
Steve Jennings, director of business banking at Alliance & Leicester, said: “This is great news for small firms and their employees, and suggests many have enjoyed a profitable 2007.”
However, Jennings urged businesses to remain vigilant with their finances, adding: “A year of good business can put owners in a strong position to pay staff bonuses. However with the outlook for 2008 less certain, business owners cannot afford to become complacent, they need to ensure costs are reviewed on a regular basis.”
© Crimson Business Ltd. 2007
