Home Depot bonuses: Here's what workers will receive (2024)

FAQs

Home Depot bonuses: Here's what workers will receive? ›

The company says workers with two to four years' longevity will receive $250; five to nine years', $300; 10 to 14, $400; and 15 to 19 years', $750. Newbies with less than two years on the shop floor will get $200.

Home Depot's "Success Sharing" program is a bi-annual cash bonus tied to the company's financial performance. Think of it as a 'pat on the back' for employees, not just for individual efforts, but for collectively exceeding predetermined benchmark goals.

Home Depot is one of the largest and best-rated employers in the U.S., and employees saw widespread raises in early 2024. How much is the starting pay at the big-box hardware retailer, and what benefits come with the job?

This statistic indicates that, on average, in the United States, the amount of money employees receive as a bonus is approximately 8% of their annual salary. This means that employers typically provide an additional payment that is equivalent to 8% of an individual's yearly income as a bonus.

An annual bonus of 5-10% of your yearly salary is standard in a lot of industries, just as a 5-10% annual raise is considered standard.

Home Depot Officers, Regional Managers, Merchandisers, Associate Merchandisers, and designated Directors are eligible for participation in the Company's bonus plan. For information related to store management, refer to SOP 01-81, Store Management Bonus Plan.

Home Depot's bonus payments will be determined based on a person's length of service, similar to Walmart's strategy. The payouts range from $200 at minimum to up to $1,000 for all hourly employees in the U.S. Home Depot joins a growing list of corporations using new tax benefits to invest in their workers.

The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024. Nonetheless, federal employee pay increases have failed to keep pace with rising labor and living costs.

Thanks to its stellar lineup of products and services tailored for every project, Home Depot and its market seem ripe for delivering more. Statista research predicts the U.S. home improvement scene will balloon to a jaw-dropping $621 billion by 2025, jumping from $457 billion in 2020.

THE CONTEXT

For 2024, Home Depot is expected to forecast roughly flat comparable sales, improving from an estimated 3.2% decline in 2023, according to LSEG data. Lowe's is likely to forecast a 1.1% drop, compared with a projected 4.8% fall last year.

How much is a Christmas bonus usually? ›

Common percentages range from 5% to 15% or more, depending on performance and industry norms. Flat Amount: Some companies provide a flat bonus amount, such as $500 or $1,000, to all eligible employees.

Companies often withhold federal taxes from a bonus check at a flat 22% rate. As a result, anyone in a marginal income tax bracket below 22% would likely see a smaller sum than expected, experts said. Bonuses are also generally subject to state and local taxes, and payroll taxes for Social Security and Medicare.

Historically, the employer distributes bonuses on a discretionary basis at the end of the company's fiscal year—late December and in the first few months of the New Year.

If you're a manager or department head deciding on bonuses, determining the appropriate salary percentage bonus involves considering all employee salary and wage amounts. Use the prior year's annual wage estimate if required. Base the bonus itself on the amount that each employee makes individually.

Make sure you're prepared if you're going to ask your boss for a raise. Pay increases tend to vary based on inflation, location, sector, and job performance. Most employers give their employees an increase of around 3% per year. Consistent job switching may have an impact on the rate at which your salary increases.

Why is tax withholding on bonuses so high? Since bonuses are paid in addition to your normal paycheck, taxes are withheld at a higher rate than your regular wages. This is because they are considered supplemental income.

Our philosophy of taking care of our people and motivating them to deliver a superior customer experience shapes our profit-sharing program for non-management associates. Success Sharing provides semi-annual cash awards for performance against our business plan, including sales and productivity goals.

They can be given to individual employees or to the entire company. Some companies give holiday bonuses to all of their employees, while others only give them to certain employees, such as those who have been with the company for a certain length of time or who have achieved certain performance goals.

While specific numbers aren't yet confirmed, Home Depot typically offers increases that are above average. These hikes are designed to attract top talent and keep them onboard, showcasing that the company values its employees beyond just their day-to-day tasks.