The holidays are just around the corner, and, with them, comes the age-old question of employee bonuses. As a business owner, you want to show your appreciation for your employees’ hard work throughout the year. Allen Woo, a successful people developer with experience in human resources and payroll, offers insight into this holiday conundrum.
The holiday bonus is a sum of money that an employer gives to their employees as a gift during the holiday season. The bonus is typically a percentage of the employee’s salary, and is given in addition to the employee’s regular pay. Some companies also offer holiday bonuses in the form of gifts, such as gift cards or extra time off.
The purpose of the holiday bonus is to show appreciation for an employee’s hard work throughout the year, and to incentivize them to continue working hard in the coming year. Bonuses are often given out at company-wide holiday parties, or they may be deposited into employees’ bank accounts prior to the holidays.
Holiday bonuses are not required by law, but they are a common practice in many businesses. If you’re wondering whether or not your company will be giving out holiday bonuses this year, it’s best to ask your boss or human resources department.
The holiday bonus is a great way to show your employees how much you appreciate their hard work throughout the year. Woo, explains, “I generally recommend that companies budget 1-2% of payroll for holiday bonuses. This ensures that everyone gets a nice bonus, without breaking the bank.”
Holiday bonuses are a great way to show your employees how much you appreciate their hard work throughout the year. However, deciding when to give out these bonuses can be tricky. Here, Allen Woo offers some insight into when is the best time to give a holiday bonus:
The holidays are a busy time for everyone, and your employees are likely no exception. With that in mind, you may want to consider giving your bonuses a few weeks before the actual holiday. This will allow your employees to use the extra money to help with holiday expenses, without having to worry about meeting deadlines at work.
If you do choose to give bonuses closer to the holidays, try to avoid giving them out on the actual holiday itself. Your employees may already have their hands full with family and other commitments, and they may not be able to fully enjoy their bonus if they have to immediately start working on holiday projects. Instead, opt for a day or two before the holiday so that your employees can still enjoy their time off.
It can be tough to show your appreciation for employees during the holiday season without breaking the bank. Woo, suggests businesses get creative with the bonus structure. Instead of traditional bonuses, they should try offering employees extra vacation days, gift cards, or even a half-day off.
Consider giving bonuses in installments. If a large bonus is not feasible, consider spreading out smaller bonuses throughout the year. This will help show your employees that you are invested in their long-term success.
Make sure your bonus structure is fair and equitable. Employees will quickly become resentful if they feel like they are being underpaid or overworked during the holiday season. Be sure to communicate clearly about expectations and deadlines so that everyone is on the same page.
Show your appreciation in other ways as well. In addition to financial bonuses, take the time to write personal notes of thanks or offer other forms of recognition, such as public shout-outs at company meetings. A little goes a long way in showing your employees that they are valued members of the team.