It’s that time of year again, Christmas carols are played at stores and the smell of pine trees and cinnamon fills the air. It is also the time of year when employees start thinking about a potential end of the year or holiday bonus. Nowadays fewer and fewer companies are handing out holiday bonuses. But what can you do to let your employees know they are appreciated even if your company cannot afford giving out holiday bonuses?
Not to worry, we have your Holiday Bonus 101,from what a holiday bonus really is and what you can do for your employees if your company is facing cutbacks.
What is a holiday bonus? A holiday bonus is just that – a present of some sort either in the way of gifts or cash for your employees at the end of the year. Some companies will base the employees’ holiday bonus on their performance and others use this bonus as an incentive for their employees. Either way it is important for employees to know that a holiday bonus may not be handed out every year.
How much should a bonus be? Bonuses do not have a set amount. An end-of-year bonus can range from $100-$5000 and it is meant to be an additional help to your employees during the holiday season.
What can you do if your company cannot afford bonuses? According to Forbes.com handling the issue of not being able to give out holiday bonuses makes all the difference in employee retention. First, the bonus process must be explained to your employees. Letting employees know how it works takes out the mystery and gives them a reason why beyond the, “the company can’t afford it,” excuse. Another thing to do is to manage your employees’ expectations. Don’t wait until the last possible minute to talk to you employees. They will appreciate the heads up when they plan for their holiday expenses.
In your experience, what has worked at your organization when dealing with holiday bonuses?