Like Christmas in June: More companies are dangling bonuses to attract workers

Businesses are handing out bonuses like it's Christmas amid a hiring crunch, according to recent data from a payroll firm. 

More than 1 in 10 paychecks issued in May contained a bonus. That's a 50% increase from a year ago, according to an analysis from payroll firm Gusto of the businesses it works with. And the bonuses employees are receiving are also getting bigger, with Gusto finding the average bonus in May almost doubled to $567. Indeed Hiring Lab found that job postings are increasingly dangling incentives to lure applicants, in some cases with bonuses of up to $30,000. The surge in the frequency and size of bonuses signals that employers are doing more to both hire and retain workers amid a labor crunch, experts say. Restaurants and other service businesses are having trouble hiring as the pandemic recedes and the economy booms. At the same time, employees are quitting their jobs at record rates to take higher-paying positions elsewhere.