How to ask for a pay bonus

The survey found Kiwis would rather have four days extra annual leave than a 10 per cent performance bonus. Photo / iStock

Kiwis prefer a guaranteed pay rise over a performance based bonus even though they could get more money in the hand by getting the bonus, research shows.

A survey of 1015 people by job search company Seek found 81 per cent would prefer a guaranteed 5 per cent pay rise over the option of a 10 per cent performance bonus.

For the average advertised salary on Seek of $73,873 the pay rise option would result in an increase of $3693.95 the following year.

But the at-risk bonus would net them $7387.

However the survey found there was a tipping point.

If the bonus was increased to 20 per cent the percentage of people who would take the bonus option increased from 19 per cent to 49 per cent of those surveyed.

"It seems 10 per cent is not enough for working Kiwis to gamble the risk of losing out on a 5 per cent pay rise, but if the performance bonus allowance is increased to 20 per cent, an extra 30 per cent of people would take the bonus," said Seek spokeswoman Sarah Macartney.

Of those who did have performance bonus pay built into their remuneration packages 74 per cent were confident they would get the money.

The average bonus was $7,728.60, according to Seek data.

Macartney said there was a strong gender bias when it came to performance bonuses with significantly more men having it built into their pay.

More men also would not take a job unless a bonus was built into the role.

But it seems time off work is more attractive to many Kiwis over getting more money.

The survey found Kiwis would rather have four days extra annual leave than a 10 per cent performance bonus.

How to ask for a bonus:

• Be pro-active about outlining what you will deliver to the business and the value or impact this will have against the business goals.

• A performance bonus is to recognise when you are delivering above and beyond the expectations of your job.

• Agree with your manager when you will review performance and when the bonus would get paid out if achieved.

• Ask if receiving a performance bonus would impact any other salary or remuneration considerations.