The Holiday Bonus: It’s Good Business
With the year wrapping up and companies winding down many are downsizing or eliminating holiday bonuses. A Bureau of Labor Statistics reported 9% of companies that have less than 100 employees offered a holiday bonus, whereas 3% of companies with over 100 employees offered a holiday bonus. Some businesses that have offered a holiday bonus in past years are struggling to do so in the present. But giving a little can go a long way.
As an employer, distributing holiday bonuses is often seen as a gesture of gratitude and acknowledgment of your employee’s hard work throughout the year. In turn, this can boost employee morale and even cultivate employee retention. Despite having a less-than-stellar year, one Local company, Sticker Mule, distributed $ 1,000 holiday bonuses this year. Their chief executive recognized inflation playing a role in some employees being in a tough spot and wanted to “do something for them”. Showing gratitude for your employee’s efforts during the holiday is a great motivator and demonstration of your appreciation.
During the holiday many people spend more than budgeted so providing your employees with a little extra lining for their pockets can be extremely valuable. Over one-third of Americans plan to spend over $1,000 on gift-giving. Receiving a holiday bonus is appreciated and allows employees to breathe a little easier at a time when they may already be strapped.
When considering holiday bonuses one word to keep in mind is consistency. There is nothing more frustrating to employees than not knowing from year to year if they will receive a holiday bonus. Look at the long-term. If your business will not be able to distribute a bonus each year, the uncertainty of not knowing from one year to the next if they will receive a holiday bonus is probably not worth it to your employees. If one person receives a holiday bonus, then all your employees should receive a holiday bonus. The amount can depend on the longevity of the employee but no one person should be made to feel left out.
Ultimately, the people that keep your company running, just want to feel appreciated. If your company did not meet goals or expectations, there are other alternatives than a flat rate. Consider offering a flexible/hybrid schedule during the holidays, extending a day or two of PTO, distributing gift cards to local restaurants and businesses, or hosting a holiday party are all great ways to show appreciation and support for your employees.
Remember, giving a little can go a long way.
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