Key findings
- 36.2% of organisations make 75%+ of employees eligible for a bonus scheme, the common answer; 26.9% answer "None" (n = 268). (How do UK employers design bonus schemes in 2026?)
- The common annual recognition budget is £26–£50 per employee, chosen by 39.4% of organisations (n = 254). A further 5.5% have no dedicated recognition budget. (What percentage of UK employers offer a long service award scheme?)
- 36.9% of organisations operate a long-term incentive or equity plan for any level of staff (n = 268). "No" is the common answer, at 63.1%. (What percentage of UK employers operate a long-term incentive or share plan?)
Every figure on this page comes from the lumi reward benchmark, with the number of organisations answering shown beside it. The papers below give the full distributions, and the public figures link to one page per metric. The register lists 62 metrics in this area, among them bonus spend as a % of the pay bill, long service award scheme and all-employee share plan (SAYE or SIP); every one has a public definition in the metric register.
What the research says
3 papers
How do UK employers design bonus schemes in 2026?
83.4%n = 151use company financial performance as a measure
- 36.2% of organisations make 75%+ of employees eligible for a bonus scheme, the common answer; 26.9% answer "None" (n = 268).
- Company financial performance is a measure in the main bonus or incentive scheme at 83.4% of organisations, and individual objectives at 67.5% (n = 151).
- 61.2% have a gatekeeper metric that must be met before any payout (n = 196).
Also in the paper
- 80.9% can adjust bonus outcomes after the formula is calculated (38.2% + 31.8% + 10.9%; n = 267).
- No deferral is the common answer, at 76.5% (n = 268). Where the question applies, 78.5% use clawback provisions (n = 158).
- The median average payout in the last 12 months was 75% of maximum bonus potential (25th percentile 65%, 75th percentile 80%; n = 179).
- Retention is the common primary purpose of incentives, at 31.7%; performance is rare, at 16.4% (n = 268).
What percentage of UK employers offer a long service award scheme?
58.1%n = 248run a long service award scheme
- The common annual recognition budget is £26–£50 per employee, chosen by 39.4% of organisations (n = 254). A further 5.5% have no dedicated recognition budget.
- The common typical value of an individual recognition award is £51–£100, at 37.5% (n = 208). In all, 63.5% put the typical award above £50 (37.5% + 26.0%).
- 58.3% apply clear limits on how often one person can receive a recognition award (n = 206). No organisation reported informal limits (0.0%).
Also in the paper
- Monetary is the common primary form of recognition award, at 32.0% (n = 266). Experiential/voucher (28.2%) and mixed (25.6%) are alternatives.
- 51.7% operate no peer-to-peer recognition (n = 269). Points- or platform-based peer schemes are rare, at 17.5%.
- 58.7% do not measure the impact of recognition on engagement or retention (n = 269).
- 58.1% operate a long service award scheme (n = 248). Of those answering on milestones, 67.8% recognise 10 years of service (n = 87).
What percentage of UK employers operate a long-term incentive or share plan?
36.9%n = 268operate a long-term incentive or share plan
- 36.9% of organisations operate a long-term incentive or equity plan for any level of staff (n = 268). "No" is the common answer, at 63.1%.
- Performance shares are the common main plan type, named by 42.4% of organisations that named a main plan (n = 99). Cash LTIP is the alternative, at 29.3%.
- The main plan is share-based for 66.7% of those organisations: performance shares, share options or RSUs (42.4% + 19.2% + 5.1%; n = 99).
Also in the paper
- 83.8% operate neither SAYE nor SIP (n = 185). 16.3% operate at least one all-employee share plan (11.4% SAYE + 3.8% SIP + 1.1% both).
- 78.9% operate neither EMI nor CSOP (n = 185). CSOP is reported by 18.4% and EMI by 2.7%. No organisation reports both (0.0%).
- 94.7% have no employee-ownership structure in place or under consideration (n = 266). 1.5% are EOT-owned and 3.8% have one under consideration.
The public figures
32 metric pagesOne page per metric, each with its figure, its base and its collection window, from lumi's public UK reward metrics. The register lists 62 metrics in this area; a figure is published where enough organisations have answered.
- Annual recognition budget per employee39.7% “£26–£50”n = 252
- Typical value of an individual recognition award37.7% “£51–£100”n = 207
- Limits on recognition award frequency58.8% “Yes – clear limits apply”n = 204
- Long service award scheme57.7% “Yes”n = 246
- Long service milestones recognised68.2% “10 years”n = 85
- Measures used in your main bonus or incentive scheme83.3% “Company financial performance”n = 150
- Gatekeeper metric for any bonus payout61.5% have gatekeeper metric for any bonus payout in placen = 195
- Bonuses deferred for any population23.6% have bonuses deferred for any population in placen = 267
- Malus provisions used (reduce unpaid awards)43.1% have malus provisions used (reduce unpaid awards) in placen = 195
- Clawback provisions on paid awards79% have clawback provisions on paid awards in placen = 157
- Sign-on bonuses used for any roles14.2% have sign-on bonuses used for any roles in placen = 267
- Primary objective of incentive schemes89.1% have primary objective of incentive schemes in placen = 267
- Proportion of employees eligible for a bonus36.3% “75%+”n = 267
- Average payout vs maximum bonus (last 12 months)The median average payout vs maximum bonus (last 12 months) is 75%n = 178
- Long-term incentive or equity plans63.3% “No”n = 267
- Types of long-term incentive plans offered42.9% “Performance shares”n = 98
- Sales commission plans87.3% “No”n = 267
- Bonus deferral period and vehicle38.1% “Shares/equity deferral”n = 63
- How the bonus pool is funded39.9% “Bottom-up (target-based)”n = 143
- Peer-to-peer recognition51.7% “No”n = 267
- Form recognition awards take32.2% “Monetary”n = 264
- Recognition budget held by managers45.7% “No”n = 265
- Recognition impact measured58.4% “No”n = 267
- All-employee share plan (SAYE or SIP)83.7% “Neither”n = 184
- EMI or CSOP option plans operated78.8% “Neither”n = 184
- Employee-ownership structure (EOT)94.7% “No”n = 264
- ESG, safety or people measures in incentives72.7% “No”n = 264
- Adjusting formulaic bonus outcomes38.3% “Yes — by a committee, documented”n = 266
- Bonus buy-outs for senior hires63.8% “Never”n = 265
- Bonus payment timing after year end55.1% “Within 3 months of year end”n = 263
- Profit share or gainshare arrangements77.4% “No”n = 266
- Retention or project-completion bonuses57.6% “No”n = 264
Read off lumi's public metric pages as at 2026-10-31. Members see every metric in the register, against the peer group they choose.
Guides and templates
3 items
How-to guideHow to design a bonus scheme
Design a UK bonus scheme step by step: purpose, eligibility, pool funding, measures, gatekeepers, discretion, deferral, malus, clawback and leavers.
How-to guideHow to set up a long service award scheme
Set up recognition and long service awards within HMRC rules: the £50-a-year exemption, trivial benefits, PSAs, cash and vouchers, with design.
How-to guideHow to set up an all-employee share plan: SAYE or SIP
Set up a tax-advantaged SAYE or SIP: limits, eligibility, HMRC registration and returns, providers, cost, and a worked Sharesave example.
Frequently asked questions
How do UK employers design bonus schemes in 2026?
In the lumi reward benchmark, 36.2% of organisations make 75%+ of employees eligible for a bonus scheme, the common answer; 26.9% answer "None" (n = 268).
What percentage of UK employers offer a long service award scheme?
In the lumi reward benchmark, the common annual recognition budget is £26–£50 per employee, chosen by 39.4% of organisations (n = 254). A further 5.5% have no dedicated recognition budget.
What percentage of UK employers operate a long-term incentive or share plan?
In the lumi reward benchmark, 36.9% of organisations operate a long-term incentive or equity plan for any level of staff (n = 268). "No" is the common answer, at 63.1%.
What percentage of UK employees are eligible for a bonus?
In the lumi reward benchmark, 36.2% of organisations make 75%+ of employees eligible for a bonus scheme, the common answer; 26.9% answer "None" (n = 268).
How common are employee share schemes in the UK?
Save As You Earn (SAYE) and the Share Incentive Plan (SIP) are HMRC's tax-advantaged plans for all eligible employees: SAYE savings of up to £500 a month for 3 or 5 years, SIP up to £3,600 of free shares a year. In the lumi reward benchmark, 16.3% of UK organisations operate at least one all-employee share plan (11.4% SAYE + 3.8% SIP + 1.1% both) and 83.8% operate neither (n = 185); 36.9% operate a long-term incentive or equity plan for any level of staff (n = 268).
What is a typical long service award in the UK, and is it tax-free?
A non-cash long service award is free of tax and NICs up to £50 per year of service, where the employee has at least 20 years' service and no other service award in the previous 10 years; cash never qualifies. In the lumi reward benchmark, 58.1% of UK organisations operate a long service award scheme (n = 248), and the typical value of an individual recognition award is £51–£100 for 37.5% of organisations (n = 208).