This shouldn’t be surprising to any manager or workforce executive today, but a new study by Hewitt Associates www.hewitt.com confirms what you probably already know: The annual holiday bonus is nearly kaput.

The Hewitt study of more than 350 organizations found that 63 percent won’t be offering a holiday bonus this year. The 2007 holiday study also reveals that more than half (53 percent) of the organizations surveyed have never offered a holiday bonus, while 10 percent have discontinued their programs.

“Of those that canceled their holiday bonus initiatives, 53 percent did so between 2000 and 2007,” Hewitt said in a news release announcing the findings. “Companies said they eliminated holiday bonuses primarily due to cost (50 percent), development of pay-for-performance programs (37 percent), or difficulty in administering bonus programs (16 percent). Of those companies that never offered a holiday bonus program, 54 percent said that all rewards are tied to performance, 34 percent said it was due to cost, and 29 percent never considered such a program.”

If you are lucky enough to be working for one of the increasingly rare companies that still do offer a holiday bonus, you are most likely to get a gift card (42 percent) or cash award (41 percent). “Another 25 percent will give employees a gift of food (e.g., turkey or ham), and 20 percent will give some type of catalog gift,” according to the survey. “For the few who receive gift cards, the amount will likely go up this year with companies giving an average of $52, up from $37 last year. The average cash gift given will be $842, compared to $837 last year.”

Not surprising, the study also found that 90 percent of the organizations surveyed are now relying on “variable pay plans (performance-based bonuses that must be re-earned annually) to show their appreciation to hard-working employees this year.”

The performance-based bonuses—usually awarded when company and/or departmental goals are met or exceeded—generally amount to far more than a worker would receive as a holiday bonus. According to Hewitt, actual company spending on variable pay as a percentage of payroll was 11.8 percent in 2007, and it is projected to be 11.6 percent in 2008.

The holiday bonus is a nice tradition, but like Gene Autry singing “Rudolph the Red-Nosed Reindeer,” one that is gradually fading away. Performance bonuses are much more 21st century and generally a better deal for everyone. Not only do they motivate workers to help the organization meet its goals, but the payout is bigger and more meaningful. You win when the company wins—and isn’t that something worth celebrating at holiday time?