During the holiday season, some companies give employees a holiday bonus as a way of rewarding and recognizing all their hard work during the previous year. While certainly not mandatory, holiday bonuses or other gifts they can be small investment that brings large rewards in the form of building loyalty and positive feelings in your employees about where they work.
If you choose to give your employees a holiday bonus, there are some guidelines you should keep in mind:
1. Holiday Bonuses and Year-End Bonuses Aren’t the Same Thing — A year-end bonus usually is tied to employee performance and whether they have achieved predetermined goals such as sales quotas. Holiday bonuses are simply a gift from the employer to the employee and aren’t performance-driven.
2. Holiday Bonuses Should Be for Everyone — Unlike performance-based bonuses, holiday bonuses shouldn’t be presented to only some workers and not others unless you want to create hurt feelings and resentment. If you give holiday bonuses, make sure everyone is included.
3. Be Consistent — The easiest thing is to simply give everyone the same thing, but you may choose a multi-tiered holiday bonus program such as giving a one bonus to salaried employees and a different bonus to hourly. Regardless of what you decide, set a policy and stick with it, making it clear that you aren’t playing any favorites.
4. You Don’t Have to Give Cash — While some companies opt to give their employees a little extra something in their December paycheck, others opt for non-cash gifts such as frozen turkeys, gift cards, movie passes, clothing embroidered with the company’s logo, or other items.
5. You Aren’t Required to Give What You Gave Last Year — If business is down and you can’t afford to give a bonus this year, you aren’t required to give what you gave your workers when times were flush. If you can’t give a bonus to your employees, tell them. Just make sure you explain your plans well ahead of the holidays. If your workers are expecting a bonus and are disappointed at the last minute, it can erode much of the goodwill your previous generosity created.
There are other ways to reward and recognize your employees during the holidays besides giving out holiday bonuses.
A company holiday party is always welcomed by your workers. It can as elaborate as a gala event at an off-site banquet facility, hotel or restaurant, or as modest as a pot luck in the break room. Whatever you choose, hosting some sort of holiday event and making sure everyone has a good time is a great way for your employees to bond with each other and build loyalty to your company.
Create a festive atmosphere by investing in some durable holiday lights or other decorations that won’t interfere with everyday operations. When they are not in use, they can be stored in durable storage chests for next year.
Have your human resources compile the names and addresses of each of your employees and send out personalized greeting cards to their homes.
Schedule a day where employees can wear casual clothing. Or buy Santa Claus hats at the dollar store and pass them out to your workers. Or sponsor an “ugly holiday sweater” contest.
Sponsor a toy drive to benefit a local charity. Set up a Christmas tree and encourage workers to leave gifts for needy children.
During the holiday season, spend more time greeting employees as they enter and leave your facility. Shake hands, wish them a happy holiday season and let them know that you appreciate all they do.
The holidays offer a great opportunity to build good will among your employees — regardless of whether or not you offer a holiday bonus — that can last all year long.