Career Daily News Survey: 56% of employees without Christmas bonuses!

How do you comment on the results of the survey by Career Daily News, according to which 56% of employees will not have Koledni bonuses this year?

For me, this is a big surprise, as the official preliminary surveys indicated that over 77% of companies this year will stimulate their employees with Christmas bonuses. A difference of over 20% among real companies suggests that it is possible that companies at the last moment decided to provide some other type of Christmas bonus like a Christmas party, Christmas gifts, and others.

Some employers are limiting bonuses in an attempt to optimize costs, especially if they are facing a slowdown in the economy, stricter budgets for 2026, or planned layoffs at the end of the year. 

From the employees' perspective, the Christmas bonus is an essential element of income with which the holidays will be celebrated.

The lack of bonuses can lead to decreased motivation and retention of talents if employees perceive this as a lack of recognition, especially if companies have created expectations among their employees.

 

How does economic uncertainty and preparation for Bulgaria's entry into the Eurozone affect decisions regarding Christmas bonuses this year?

The transition to the euro on January 1, 2026, involves numerous adaptations for the business – for example, changes in accounting systems, ERP, employment compensation schemes, contracts, and dual pricing before and after the introduction of the euro. These transitional costs may limit the freedom of companies to distribute additional bonuses.

Currently, the focus is on fiscal stability. For the successful introduction of the euro, the state and business are following stricter fiscal discipline and expense planning, which often means stricter budgets and control of additional payments to staff during the adaptation period. In this disciplined environment, on the brink of new elections, it is quite possible that some companies will miss the most important part of the end of the business year – motivation and recognition of their people's contributions.

Still, the outlook, in my opinion, is positive. I believe that joining the Eurozone will give us greater economic stability and potentially lower financing costs in the medium term. This could support more confident decisions regarding bonuses after 2026, not just Christmas ones.

 

Do you observe a more cautious approach from companies when planning additional compensation at the end of the year?

I cannot state this categorically. By default, companies that regularly allocate a budget for additional compensation, recurring and one-time bonuses, are unlikely to change this approach to avoid potential upheavals. Those who do so would risk generating a strong decline in motivation and potential for “quiet quitting” of key employees.

The important point here is how budgets for 2026 will be made and what funds will be planned for salary increases, more stimulating additional bonuses, and resources for developing key skills. Informally, employees expect that with the introduction of the euro, salaries will naturally increase by 10% to 30%. However, these are more like “urban legends”.

Salaries are not automatically indexed when transitioning from lev to euro.

Employers are not obliged to raise salaries because of the euro.

 

What alternatives to cash bonuses are increasingly being used by employers, especially when traditional bonuses are reduced or absent?

My observations are that there are many and diverse practices, depending on the type of company, whether it is local or international, the homogeneity of the team, and the established organizational culture.

I would really like the focus in 2026 to be directed towards more flexibility and programs for better work-life balance

Flexibility of companies will be one of the most valued “currencies” in 2026.

-          Hybrid or fully remote work

-          Flexible working hours without a set start and end

-          Compressed work week (e.g., 4 days)

-          Additional paid days off around holidays and more

-          Package service for psychological, legal, and social support for mental health prevention

-          Focus on the comfort of people 50+ and care for knowledge preservation.

For many employees, this is perceived as equivalent to a financial bonus, especially for parents with younger children, people with long commutes, and others.

 

Is there a difference in the approach to bonuses between international companies and local firms here?

Yes, there is a noticeable difference in the approach to bonuses between international companies and local firms in Bulgaria, although over time the boundaries are starting to blur partially. The differences are most visible in the structure, predictability, and philosophy of compensation.

International companies definitely apply a more structured and long-term approach – clear and formalized bonus schemes, expected predictability, use of non-financial incentives, and others. But at the same time, they also have some limitations related to the global performance of the company - if it is not satisfactory, the bonuses may be completely absent. To a considerable extent, this is seen as a lack of flexibility.

Bulgarian companies apply significantly more flexible approaches, but too often chaotic and insufficiently transparent. Decisions regarding bonuses are made “here and now” and depend on the current state of the business, without necessarily having planned funds for that. It is possible to demonstrate unhealthy practices, such as giving bonuses “secretly”, only to a part of the people, or having no communication to the team, but creating expectations.

 

How do employees react to the lack of a Christmas bonus and what can HR do to manage these expectations?

The reaction of employees to the lack of a Christmas bonus is predictable and human, but not unambiguous. It depends on the context, communication, and trust in the Employer. Here, the role of HR is critical.

Most often, employees react with disappointment and a sense of being undervalued, because the Christmas bonus is not just money, but it has emotional significance for most people.

In many cases, a comparison with competing companies begins – they have bonuses, and we do not...

It is possible that on a subconscious level, an idea of leaving may form, which over time manifests as a lack of motivation and recognition for efforts, and a strong decline in engagement.

 

What is the role of transparent communication from HR towards employees when the company cannot afford bonuses?

This is the most important moment for any self-respecting HR - when there are created expectations among people to confront them and explain the situation.

A good HR does it openly and transparently. Honesty increases trust much more than hiding the facts.

A good HR  can always offer alternatives, small gestures of recognition, a personalized approach that says that not everything is about money, and in this way maintain motivation, treating them as a trusted partner. The easiest way is to compensate for the lack of a bonus with an additional day or two off. The business will not suffer significantly, but people will feel the care and will increase their loyalty.

Honest and timely communication with the team, as with family, demonstrated humility and trust in difficult times are the best tools for motivating people.
For me, the most accurate approach is a combination of humanity and strategy.

To not lose the trust of its employees, the most important thing is to remember that if there is communication to people or a bonus scheme is presented for a given period, it must necessarily happen, regardless of the circumstances. Otherwise, employees quickly develop a feeling that they have been deceived, and trust automatically disappears.

 

How does HR balance between the financial constraints of the business and the need to maintain high motivation among teams?

Through intelligent management of expectations, priorities, and employee experiences. In periods of pressure HR transforms from an operational function into a strategic role. Under conditions of constraints, motivation is not “bought”, but built.

As I already mentioned, key approaches are:

1.      Clear and honest communication – to explain to people why these constraints are necessary, not to give “false hopes”, to have logic and consistency

2.      Focus on “total rewards” -  HR redirects the conversation from “how much money” to “what is the total value ”, with all added social benefits, training,  Wellbeing…

3.      Intelligent and skillful use of non-financial motivators. These are high-impact and low-cost factors:

-          Recognition and visibility

-          Meaningful work and autonomy

-          Participation in important projects and decisions

-          Trust and psychological security

4.       Working with line managers, as they  are the "ambassadors" of motivation. The role of HR is to manage to train them to:

-          talk about difficult topics honestly and openly, with respect

-          give sincere, motivated, and justified recognition

-          manage workload and stress, not only their own but also that of the team

Poor communication from manager to people can undermine even the best HR strategy.

Successful HR is also a professional and a balancer, who does not promise the impossible, does not reduce motivation only to money, uses a combination of honesty, care, and strategy, and always supports managers by guiding and assisting their development.

What are your expectations for 2025–2026 regarding bonuses and overall employee compensation, considering economic trends?

According to annual surveys, the average salary increase in our country is expected to be around 6% both in 2025 and in 2026. This indicates that employers are planning a gradual but stable growth of base compensation.

In comparison, in the eurozone, the European Central Bank reports that wage growth will gradually decrease – for example, to around 2.3–2.7% in 2026. This reflects moderate pressure on the labor market and more stable inflation.

Surveys indicate that wages will grow, but at a slower pace compared to some stronger years in the labor market. This is a normal development during economic slowdown and inflation stabilization.

Personally, my expectations are that companies may reduce and optimize ineffective structures and the so-called "parasitic positions" and try to allocate resources to retain their talents through additional financial incentives, ensuring European stability of their compensation.