More than two-thirds (68%) of Canadian organizations will not offer any type of holiday bonus this year, according to a new study conducted by human resources consulting firm Hewitt Associates.

The findings is consistent with Hewitt’s 2002 survey results, in which 64% of companies indicated they would not award holiday bonuses.

“Organizations are moving away from entitlement-type pay programs and placing greater emphasis on employee performance. More organizations want to establish a real connection between success and bonuses, rewarding employees whose personal performance helps the company meet its objectives,” said Todd Mathers, a consultant in Hewitt’s Toronto office.

The number of companies offering incentive or pay-for-performance plans has increased from 43% in 1994 to 81% in 2003.

Hewitt surveyed 115 organizations countrywide for its “2003 Holiday Bonus and Gift Study”, and found that more than half (59%) of companies have never sponsored a holiday bonus program, while 9% had a program, but have since discontinued it.

Of the 32% of the companies that continue to offer a holiday bonus program in 2003, just over one-third (32%) hand out gift certificates, 30% provide cash bonuses, and another 30% reward employees with some sort of food item such as a turkey or a ham. These organizations said they continue to award holiday bonuses as a way to say thank you, demonstrate good will and uphold tradition.

“For many organizations, offering a holiday bonus program is less about the monetary value and more about providing their employees with a tangible ‘thank you’ during the holiday season,” said Mathers.

To that end, 80% of Canadian companies will celebrate the season by hosting a holiday party this year. More than half (63%) of the Canadian companies celebrating with employees plan to pick up the tab, while 35% of organizations will share the cost of the party with their employees.

In addition, Hewitt’s study found that 61% of organizations will host a children’s holiday party for their employees’ families.