Earlier this month, consulting firm Pearl Meyer released results from a quick poll of 301 board and management level executives, primarily from large publicly held companies. The survey was intended to reveal company plans for sharing savings resulting from the 2018 tax reform bill.
Poll results indicated that 20% of respondents had already provided benefit enhancements to employees, and 35% are considering additional or new benefits. While some employees directly linked additional employee rewards with the benefits of tax reform, others indicated that they were recognizing employee contributions to success.
Other key findings of the survey include:
- 52% of companies surveyed are not planning additional actions as a result of lower tax obligations. Some have employee programs in place which are expected to benefit from the tax plan, such as profit sharing plans and equity awards.
- The most common one-time actions are employee bonuses, with over 50% of the respondents providing a $1,000 bonus.
- Other structural changes to compensation include increases to minimum wages, increased salaries or additional retirement benefits.
News coverage and announcements of tax-related bonuses and benefits to employees have raised awareness and expectations. Pearl Meyer suggests that companies who aren’t planning changes should prepare to answer employee questions about compensation and benefits and be prepared to explain their rationale and plans.
Wetzel, Dan and Toman, Rebecca, Pearl Meyer Quick Poll: Sharing Tax Bill Benefits with Employees, 2/9/18.