Cash is king for Yorkshire employees at Christmas bonus time

EMPLOYEES in Yorkshire would overwhelmingly choose a small cash bonus over spending more time with their family this Christmas.

This is according to new research from PwC, which asked adults in the region what bonus they would value the most this Christmas. £250 extra pay was the most popular option for all generations of workers (58%), with only one in ten people picking two extra days of annual leave.

Extra pay was the overwhelming option for all generations of workers, despite the fact that many of the other bonuses on offer are tax free. For example, only one in ten people would choose a voucher of the same value for their favourite store (but tax free). Only 1% of people opted for a £1,000 bar tab for them and their immediate team (of approximately 10 people), 9% would choose a tablet computer, 5% opted for a Christmas hamper worth £250. Only 1% of people in Yorkshire would donate the money to charity.

Nationally, people working in financial services and professional services were the most likely to choose an extra two day’s annual leave over extra pay. And people working in manufacturing are the most charitable – with 7% saying they would donate the £250 to charity.

John Harding, employment tax partner, PwC, said: “Our research highlights that cash is still king this Christmas as employees overwhelmingly place a higher value on a small amount of extra pay above all other benefits – even extra time off with their families this Christmas.

“Despite the recent signs of a pick-up in wage growth, many people are still feeling the squeeze this Christmas so it isn’t surprising that people are hoping for an extra cash bonus in their stocking this year.

“The fact that people opted for extra pay, which will ultimately be taxed, rather than a voucher of the same value but tax free shows that people value certainty and control most when it comes to workplace benefits. Employers should consider what it is that their workers will really value. More targeted employee benefits could actually end up saving many companies millions of pounds a year on benefits that their people do not value.”