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Long, long ago, in a fiscally confident time, employers would share the company good fortune and offer their employees Holiday Bonuses.\u00a0 But, considering the impact of the economy, what will employers do this year?\u00a0 Can they afford to give Holiday Bonuses?\u00a0 Is it even a good idea?\u00a0 Why exactly do companies continue to give, or even contemplate giving, these year-end Bonuses?<\/p>\n
It is probably a fair assumption that employees know only too well not to count on getting a Holiday Bonus this year.\u00a0 Times are tough and keeping their jobs is really their priority.\u00a0 But what are employers thinking?\u00a0\u00a0 And, what should employers be thinking?<\/p>\n
The fact is that Holiday Bonuses are not always the most motivating.\u00a0 If you give a bonus out of obligation, employees will know it. I once worked at a place that gave turkeys each year for no other reason than that was what had been done for the last 50 years.\u00a0 Each employee had to pick up their turkey from the main office on the day of delivery, from the back of the delivery truck, whether they were scheduled to work that day or not.\u00a0 Employees could not stop talking about how insulting the whole process was, kind of like a food bank feeling for many of them.\u00a0 Given how the bonus turkeys were received by the employees, the company would have been better off giving nothing.<\/p>\n
Giving Holiday Bonuses doesn\u2019t sound like it should be a difficult process, but a lot of companies get it wrong.\u00a0 In reality the Holiday Bonus is one perk that should be handled very carefully and with some extra thought. \u00a0If you\u2019re going to give a bonus, think through the whole process.\u00a0 Which isn\u2019t to say you have to give what you don\u2019t have!<\/p>\n
Industry at large is strapped for cash.\u00a0 Bonuses that are small can be appreciated, or at least, understood for what they are.\u00a0 Employees can feel grateful for even the most modest of bonuses.\u00a0 Having said this, if you\u2019re going to give your employees an inexpensive bonus, there\u2019s a good argument for being clever and thoughtful about it.<\/p>\n
By putting some thought into a Holiday Bonus, you can avoid a lot of problems. Don\u2019t give anything too personal, anything that contradicts the receiver\u2019s value system (such as giving alcohol to a non-drinker), or anything that could be misinterpreted (for instance, giving female employees beauty kits and male employees jumper cables, thereby reinforcing stereotypes).\u00a0 Most importantly, should your company provide a year-end bonus, be fair about it. You may like one employee better than another, but don\u2019t give $10 to one and $200 to another if they\u2019re both performing the same basic functions.<\/p>\n
But do employers even have to give a bonus?\u00a0 And, what about non-monetary bonuses?\u00a0<\/p>\n
The fact is that many companies stopped their Holiday Bonus programs in the early 2000s.\u00a0 Besides the obvious economic rationale for discontinuing year-end bonus programs, other reasons employers ended bonus programs include switching to performance-related compensation plans, rising corporate sensitivity to workplace diversity, and serious issues of entitlement that arise when providing an obligatory bonus.<\/p>\n
Still some employers see the Holiday Bonus as a company\u2019s chance to say thanks and to offer their employees something extra along with their December paycheque. Their experience is that Holiday Bonuses do positively impact morale and company loyalty.\u00a0<\/p>\n
One of the biggest fallacies of the year-end bonus is the method by which the bonus is determined.\u00a0 The senior management teams sits, sequestered, in a boardroom.\u00a0 They look at how much money they have at their disposal and try to match the bonus to the fiscal reality.\u00a0 What is missing in this approach?\u00a0 The employees\u2019 voice and preference!<\/p>\n
The need to be transparent about the standing of the company is a whole other article.\u00a0 Having said this, sharing the fiscal realities and how these relate to the year-end bonus is imperative.\u00a0 Building an employee team to help match the fiscal reality to the Bonus is just good common sense.\u00a0 Having that team conduct and interpret a quick survey of employees\u2019<\/span> and their preferences is just plain and simply a best practice!<\/p>\n Whether the bonus will be more of a symbolic gesture this year or something significant, employees know best what will create that elusive motivation and loyalty-\u00a0 they might surprise you!\u00a0 More often than not, it is not the financials of the bonus but rather the impact.\u00a0 Employees might well prefer a day off with pay than a $50 gift certificate to the local grocery store.\u00a0 They might prefer a personalized and framed letter from the company CEO, acknowledging their contributions, over a pen and pencil set.\u00a0 They might prefer a well thought-out, no-cost-to-the-employer Employee Discount Program over a basket of fruit.\u00a0 Or, employees might prefer a holiday party, with good food and time away from the office with friends and new friends rather than the obligatory turkey.\u00a0<\/p>\n To bonus or not to bonus is the question.\u00a0 Well thought-out bonuses might very well increase employee motivation and loyalty.\u00a0 There are creative ways to give your employees bonuses that don\u2019t necessarily need to break the bank.\u00a0 Involving existing employees, educating them about the financial realities and tasking them with advising what the best Holiday Bonus is might well be the best practice of the year.<\/p>\n