Many companies still paying bonuses despite a year of economic slowdown

Chamnarn Maytaprechakul, executive vice president for marketing at The Mall Group, said the company would this year provide bonuses at the same rate as last year, at about two to four months’ salary, depending on the length of employment and the worker’s performance.

“We have provided bonuses at this level for more than 10 years. Whether our sales performance is good or bad as affected by economic difficulty, we will continue paying bonuses to our employees at this satisfactory level so as to contribute moral support to our people,” he said.

Mayuree Chaipromprasith, senior executive vice president of Siam Piwat Co, operator of the Siam Paragon, Siam Center and Siam Discovery shopping complexes, said the company had not firmed up its bonus amounts yet and would do so after its financial year closed at the end of this month.

“However, I can confirm that there will be a bonus, because it has been a satisfactory year. We saw visitor numbers to our properties jump by 15 per cent from 2014. We were also pleased to achieve a No 6 global ranking as one of the most mentioned locations on Facebook anywhere in the world,” she said.

Charun Poopat, vice president of Seacon Development, operator of Seacon Square shopping malls on Srinakarin Road and in Bang Khae district, said that the company this year would give bonuses to its employees worth 3.5 to four months’ salary.

He said Seacon paid bonuses twice during the year, in March at 1.5 to two months and in December, which is about two months’ pay.

“This year’s bonus reflects our greater performance. We achieved the target to grow rental revenue at our shopping complexes by 10-15 per cent this year,” Charun said. 

Warunee Kitjaroenpoonsin, director of corporate affairs at Big C Supercenter, said the company had prioritised the well-being of all employees. 

“We strive to create a positive working environment and improved quality of life for all staff, including handicapped personnel. Thus employee compensation is a key motivational factor that is always in the interest of the human-resources team,” she said. 

“Regardless of the economic circumstances, employees will still enjoy a wide range of benefits, including provident funds, life-insurance coverage, emergency funds, reasonable vacation leaves and, of course, a year-end bonus. 

“These measures of compensation keep our staff in high spirits and in full awareness of their role in the company’s ability to achieve milestones in hard times.” 

Suwat Thongrompo, chief executive officer of SF Corporation, said the company based its bonuses on its profit during the year.

“Our bonus will not swing as much as in other active sectors, such as property,” he said.

Meanwhile, in the tourism sector, Airports of Thailand has informed its staff that it will pay annual bonuses at an average of 7.5 months’ salary this year. That is up from six months last year. A few years ago, AOT used to pay bonuses of up to 14 months.

Dusit International Group, one of largest hospitality firms, has given an unofficial notice that all employees will get a one-month bonus, similar to last time.

Most hotels and some airlines such as Bangkok Airways said they would pay an annual bonus early next year, perhaps at the end of January or in February, as they have to calculate their performance and revenue after the end of high season. 

Leading commercial banks have maintained a fixed bonus for their employees even though their profitability in 2015 has likely been slower than last year. Net profits for the first nine months dropped from the same period last year because of higher loan-loss provisions. In general, the banking sector pays fixed bonuses with special incentives based on the return on assets (ROA) and performance of employees.

Bangkok Bank pays fixed two-month bonuses in June and December. A special incentive of around 1.5 months’ salary will be paid by the end of January. In the first nine months, BBL reported net profit of Bt26.50 billion, down by 4 per cent year on year from Bt27.57 billion. 

Meanwhile, Kasikornbank will pay a fixed two-month bonus in February, and special incentives based on the bank’s ROA will be paid in March. KBank’s net profit in the first nine months was Bt33.99 billion, down by 6 per cent year on year.

Siam Commercial Bank pays a fixed two-month bonus in June and December and a special incentive based on employees’ performance, which will be paid in February. SCB reported net profit for the first nine months of Bt35.38 billion, down by 14 per cent from Bt41.10 billion in the same period a year earlier.

Krungsri Group will pay a fixed one-month bonus and a special incentive based on its key performance index in March. The bank reported net profit in the first nine months of Bt13.53 billion, up by 32 per cent from Bt10.23 billion in the same period last year.

Media and event businesses this year are expected to pay bonuses to their employees at the same level or less than last year, according to an industry insider, as they rely heavily on economic momentum.

Based on the official economic-growth forecast of 2-4 per cent, the industry’s growth forecast for 2015 was originally set at 4-7 per cent. In the first nine months when gross domestic product expanded by only 2.9 per cent, the industry was unable to achieve the original growth target. 

In the first 11 months, advertising spending remained in positive territory, increasing by 4.2 per cent from the same period last year. 

Amid intense competition in TV broadcasting business this year, new players are still focusing on cost management, so bonuses will be small if any. Market leaders Channel 7 and Channel 3 could not be reached for comment, however.

Despite a slowdown in advertising spending in print media, Matichon Publishing is reportedly paying a bonus of one month’s salary. Nation Multimedia Group will pay an average bonus of 80 per cent of monthly salary but it also offers extra for those who demonstrated outstanding performance.

In the property sector, Prasert Taedullayasatit, managing director for condominiums at Pruksa Real Estate, said the condominium department showed strong financial performance this year. As a result, the department will pay bonuses of 12-20 months to its employees. The rate will depend on the performance of individual staff.

However, the company’s average bonus this year will be close to last year’s, according to chief operating officer Lersak Chuladesa.

Pruksa Real Estate announced bonuses averaging 7.5 months last year.

Other property firms have committed to paying bonuses at the same level as last year, averaging three to six months, depending on the business’ performance. Most of them will pay their bonuses in January or February.