It used to be that Holiday bonuses were long-anticipated throughout the entire year. Like Clark Griswold, employees depended upon these end-of-the-year sums of cash for big-ticket items. But whether or not your employees are expecting to cash in on their hard work to buy a family pool, you may consider this opportunity to say “thanks.” After all, your employees are dedicated, hard-workers, and assets to the company. And this is the time to show your appreciation via gift-giving, right? Well, Holiday bonuses aren’t for every company and all employers. Let’s take a look at how and when to give Holiday bonus checks for a bit of holiday cheer in your office.
Types of holiday cash bonuses:
As a small business owner, it may be difficult to discern the appropriate amount to give your employees. Consider what your company can afford and what you aim to achieve with the bonuses. There are several types of holiday cash bonuses you might consider
- An end-of-the-year performance bonus based on the employee’s goals and objectives. This serves two purposes. It will both help ensure that the employees have an incentive to work hard throughout the entire year, as well as to thank them with a special gift.
- A bonus determined by a percentage of the employee’s salary. This is consistently given each year and is independent of the employee’s performance. While this can be thought of as part of the employee’s salary, it is still considered an incentive to work hard for a high-paying wage each year.
- A flat dollar amount for all employees. This amount is determined based on the company’s performance and distributed equally among employees of the same status. If the company has a successful year, bonuses should increase, and vice versa.
Who should give Holiday bonuses, and how much?
Holiday bonuses are considered customary among many companies. However, their tradition is becoming increasingly less-vogue. In 2017, only about half of US businesses planned to hand out Holiday bonuses that year. But, if you employ professionals of a large corporation, you may take this consideration more seriously.
Non-cash bonus ideas:
Not all bonuses need to come in the form of money. If you want to show your employees some holiday generosity, there are several ways to do so without a large sum of cash. When giving non-monetary gifts, consider what might be appropriate and appreciated by your recipients. Even throwing a Holiday party or writing them a thoughtful note can go a long way. And most would be happy to receive a bit of extra paid time off. No matter your gift, make sure that is given intentionally and in gratitude for your valued employees.
What not to do:
There are, in fact, gifts that may go unappreciated. Cheap gifts or ones that are explicitly useless might send the opposite message of gratitude and appreciation. This means no fruitcakes! They are almost universally unwanted. And not giving anything, even the smallest of gifts can seem thoughtless or greedy. So, to keep from looking like a Scrooge this season, make sure you offer your employees a thoughtful gift of some sort, big or small.
Holiday bonuses can take on several different forms. While they may be given as a check, money isn’t necessarily required. Remember that your primary goal in giving a bonus is to say “thank you” for an employee’s hard work and to spread a bit of holiday cheer.
Managing a small business is challenging, no matter the time of year. So, to alleviate some of the hard work, make sure to practice delegation. For your bookkeeping and payroll needs, call on us at Prospect Financial Solutions. We are prepared to meet the needs of your business so you can get back to doing what you do best. Reach out today!