Despite a lackluster economy, officials with many of Lawrence’s major employers said they stuck with their usual practices when providing holiday bonuses this year.

That seems to buck a national trend, where 21 percent of North American companies eliminated or severely cut incentive-bonus programs to reduce operating costs this year, according to Watson Wyatt’s 2002 Strategic Rewards study.

Stagnant economic conditions are to blame, the human capital consulting firm reported, and companies were faced with balancing tough budget cuts with their ability to stay competitive in the marketplace and keep employees happy.

Justin Hill Jr., vice president of the Lawrence Paper Co., said his business, which manufactures cardboard boxes, was hurt by the country’s struggling economy. But he said company officials still decided to give employees a cash reward for the holidays.

“Typically it has some relation to how the company is doing throughout the year,” Hill said, “but there are Christmas bonuses this year.”

Like some other area manufacturers, Hill said bonus amounts were under management discretion, and economic conditions were a significant determinant in the size of the bonuses.

“The economy is pretty miserable, and it has affected the amount,” Hill said.

However, in most cases, economic uncertainty has played a minimal role, if any, in Lawrence-area managers’ decisions to provide holiday rewards to their employees.

But that doesn’t mean everyone is receiving cash for the holidays. Officials from several other area manufacturers said they gave holiday rewards in some other form — most often food.

At Bowersock Mills and Power Co., cash bonuses were awarded for increased productivity throughout the year. During the holiday season, however, employees received care packages.

“It’s food, gift certificates — things like that,” plant manager David Readio said. “This year it was a smoked chicken and some pies from Washington County. Our production bonus is our cash incentive.”

Bowersock Mills and Power Co. employee Roy Jones works to make room for a new access ramp near the dam on the Kansas River near the intersection of Sixth and Massachusetts streets. Like his fellow employees, Jones has received a holiday bonus from his employer, Bowersock Mills. Jones worked Tuesday at the dam.

The absence of holiday cash bonuses also is apparent at Kansas University, Lawrence’s largest employer.

“The university has never given end-of-the-year bonuses to its employees,” said human resources director Ola Faucher. “We have the Chancellor’s Holiday Reception every year, though. It’s a reception with refreshments and door prizes.”

A party but no bonus seems to be the rule for most companies across the country, according to a national survey by Hewitt Associates. In the consulting firm’s 2002 Holiday Bonus and Gift Study of 432 American companies, 67 percent said they were not offering any type of holiday bonus this year.

Additionally, more than half, 51 percent, never have had a holiday bonus, while 16 companies had a program that had been discontinued, according to the Hewitt study.

The survey doesn’t count them as a bonus, but 64 percent of all companies surveyed did throw holiday parties in 2002.

Employees in Douglas County government positions attend an annual party instead of receiving holiday bonuses.

Similarly, other companies, like E and E Display Group, use parties rather than cash or food to reward employees.

“We have a Christmas party where we give away some gift certificates,” said E and E human resources manager Mona Katz, “but we don’t give cash.”