MW 'Isn't a bonus usually at least $100?': How company rewards can backfire

By Charles Passy

From $600 designer shoes to $5 bird feeders, bonuses can boost or bust employee morale

Experts say bonus amounts can vary depending on numerous factors, including the nature of the industry and the type of position the employee holds. One tech worker's story about a $20 bonus sparked debate about what constitutes proper recognition from the boss.

When does a company bonus feel more like an insult?

Such is the debate surrounding a recent LinkedIn post from Liz Ryan, a New York-based workplace consultant. It shared an exchange between Ryan and a tech-support representative who received a $20 bonus - in the form of 20 $1 bills stuffed inside an envelope, oddly enough.

"I mean it's nice, but isn't a bonus usually at least $100?" the anonymous worker asked Ryan.

Ryan agreed the company wasn't exactly doing the right thing.

"I'm sure the intention was good but your employer dropped the ball here," Ryan wrote. "Many people would be just as underwhelmed by a $20 bonus as you were."

Others who responded to the LinkedIn $(MSFT)$ post told similar stories of bonuses that didn't feel so bonus-y, from restaurant coupons to the proverbial holiday ham. Some also simply commented on how empty the $20 bonus gesture seemed - and, in turn, how that could affect a worker's morale.

Or as one respondent observed: "A bonus, however small, sends a message about how the company values its employees, and if it misses the mark, it can do more harm than good."

It's a lesson that employers would be wise to heed, according to human-resource professionals and workplace consultants who spoke with MarketWatch.

Granted, there are no hard and fast rules about what constitutes a proper bonus, these experts say. They note that much depends on the industry - some professions, such as those in sales, are more bonus-driven than others.

And much depends on how high up the ladder an employee may be: An hourly worker might take joy in receiving a $100 bonus, but a C-suite employee? Not so much.

Experts also note that bonuses come in many forms, from "spot" gifts that may recognize a one-time effort to the more traditional extra compensation come holiday time. There are also retention bonuses, referral bonuses and rewards of yet other kinds - and each type of bonus can suggest a different type of remuneration.

"The definition of a 'fair' bonus depends heavily on context," said Lisa A. Cummings, an attorney who's worked in the human-resources field.

Some companies do surprise workers bonus-wise in a positive way. Take the news that Brinker International $(EAT)$, parent company of the Chili's restaurant chain, will pay out hefty bonuses to corporate employees in recognition of recent strong sales.

"This year's bonus is our biggest yet, and it's a direct result of everything you did to make FY25 one for the history books," the company said in a message viewed by The Wall Street Journal.

But if there's a common thread in many situations, experts say, it's that an employee's expectation of what's fair bonus-wise doesn't always align with how the employer views the situation.

Tyler Yamnik, an employment attorney for Engage PEO, a company that specializes in HR outsourcing, cited a scene from "National Lampoon's Christmas Vacation" as the perfect illustration of this expectancy gap.

In it, Clark Griswold, the character played by Chevy Chase in the 1989 movie, is looking forward to receiving a big enough holiday bonus to pay for a new pool at his home. But when he opens the envelope from his company, he finds he's getting the gift of a membership in a jelly-of-the-month club.

The point, said Yamnik, is that companies should set bonus expectations, so there are no misunderstandings. Then, they need to be consistent going forward. "And give notice if anything has changed," Yamnik added.

And things may have indeed changed. The Chili's example notwithstanding, companies are being slightly less generous these days when it comes to bonuses, according to data from the Society for Human Resource Management, a trade organization. For example, 50% of companies offered "spot" bonuses in 2023, but this year that's gone down to 46%, SHRM reports.

"The definition of a 'fair' bonus depends heavily on context." Lisa A. Cummings, an attorney who's worked in the HR field

Not that it's strictly about the money, experts say. Employees desire recognition for their efforts, but sometimes a heartfelt "thanks" or "congratulations" can be just as telling. Or perhaps more to the point: A bonus that's given without that personal touch can feel a bit less bonus-y, too.

That could even apply to the aforementioned $20 cash bonus, says Marissa Andrada, a business consultant who has worked with companies and brands ranging from Chipotle to Starbucks.

"It would have been more meaningful if there was some note attached to it," she said.

A meaningful bonus can also be about the unexpected, say those who have been on the receiving end of such gestures.

Sarah Belizaire-Butler, a veteran publicist and marketer who heads her own firm, recalled when, earlier in her career, she was working for a company that recognized some of its top employees in an especially personal and telling way. Rather than just writing them a check, the CEO took them on a shopping experience at a high-end department store. Belizaire-Butler got a pair of $600 designer shoes that she still has to this day.

"A $600 check would not have hit the same," she said, adding that the end result was the employees were motivated to work all the harder.

Conversely, when companies don't put much thought into a bonus - or just go the really cheap route - there's less incentive to do a good job or even stay with the business, according to those who have experienced such treatment.

L.A. Berry, a journalist who specializes in covering the equestrian scene, recalled the time she worked for an independent contractor who marketed horse shows. It was a job that involved "nonstop hustle all year" and "lots of travel and the cheapest possible stays in motels."

So, what kind of bonus did she and some other employees once get? As a gesture that built on the animal theme, the boss gave them each a plastic bird feeder - an item that Berry estimated cost all of $5. Adding insult to injury, according to Berry: The boss included some bird food as part of the gift, but didn't even buy individual bags of seeds; rather, he divided one large bag into small sandwich bags - "like school lunches packed for children."

Berry stuck with the job a while longer, but others left. The bird-feeder bonus was a kind of a final straw, she said: "It was a gesture of 'You can't say I didn't give you anything,' but it was the minimum investment possible."

Which brings us back to the tech-worker and the bonus of $20 in singles. Ryan told MarketWatch that when she learned of the situation, she could hardly fathom it.

"It's the kind of thing that makes you question if the person in charge has a clue," she said.

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

-Charles Passy

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August 23, 2025 12:58 ET (16:58 GMT)

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