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Christmas Bonuses?
An anonymous reader asks: "I run a small startup company who was able to turn a buck during this past year. To say 'Thank you' to the employees who put in so much time and effort to get us financially stable I would like to give them a Christmas bonus. However, I've never received one before, so what is appropriate? I have 5 employees and I want to give them all the same bonus, but while I can afford about $1500 a person, is that too much? Would gifts be more appropriate then money? What are some bonuses the Slashdot crowd has received in the past?"
How about, divide profit by 2, then divide that by the # of people to get a bonus?
I think that $500/person would be quite acceptable...
Give them the cash. Cash bonuses to workers are not too uncommon, and no employee will ever complain about a cash bonus. Plus, they get to spend it how they see fit, and would be better than a single type of bonus. Id reccommend cash, the more the merrier. On a side note, bloody good on you for giving them a bonus.
Will you hire me? ;-)
At the engineering company where I work, Christmas bonuses are usually between 0.5x and 3x a full-month's pay, depending on performance (of the individual and the company). $1500 does not sound unreasonable to me.
If you are a small company I think even $1000 is too much. Don't forget to reinvest. Give them $500 or something like that - they will love it.
...And when they came for me, there was no one left to speak out for me." - Martin Niemoeller (1892-1984)
I happen to work for a great place that has, for years, given a flat 5% of yearly salary for christmas bonus for all employees. I return the favor with my loyalty and hard work.
Take that $1500 per employee, give them a $500 or so christmas bonus, then save the rest for further bonuses.
One thing I really like about my employer is we get a christmas bonus, a back to school bonus, a summer bonus, etc. They are all in the couple hundred dollar range, but they alwas seem to come at the right times, and everyone appricates it.
symetrix. We are building a religion, a limited edition.
As a lowly emplyee, I highly respect the fact you are doing this. Congrats!
/end rant
I've been at the same job for 3 1/2 years and three years ago I received about $400 I believe, and then $0 and $0, even though I got 'promoted' and we're making more money. It's a small company and I feel like shit because I also probably haven't received a raise in that long as well. Anyways,
$1500 sounds awsome!
HURD - Hurd's Under Research & Development
Staff are the true assets of companies (especially tech companies) and deserve to be treated as such. Show them how much you appreciate them.
Why am I so sure? Because my resignation has brought more than one company to the brink of bankruptcy (despite my best efforts to train replacements etc.).
Q.
Insert Signature Here
Obviously how exorbant a $1,500 bonus is depends on the regional economy. $1,500 would be a dream come true for me, here in Wisconsin. If you're in California, I'd say $1,000 would be a good bonus.
Of course, this assumes they don't have some form of profit sharing. If they do, cut it in half.
I've never received larger than 2% of my salary during bonus time. I suspect $500 is 'enough', but if you can afford to give $1,500, then why not? There is no such thing as 'too much' unless it means you'll have to skimp on other business needs next year.
You might also consider giving gifts in addition to a bonus. The percieved value of a gift is often greater than it's actual cost - spend $400 on an IPOD for each employee and give them a $500 bonus.
Just don't give them gifts that are directly related to their daily work - it'll seem cheap (ie, never give your wife a vacuum cleaner as a 'gift', under pain of death)
-Adam
Back in the dot com days, I think I got a small So. Pacific Island for a bonus and a roll of stock options.
Last year I just got a lousy iPod and ~$1500.
Last Christmas everyone at our small (50 person) company got fairly nice bonuses. Right after the new year, several business deals fell through, and many had to be laid off. The lay-offs may have been avoided if the bonuses weren't so high. The smaller you are, and the fewer clients you have, the more likely you are to find yourself in a similar situation. So, yes, give bonuses, but don't go overboard--you and your employees may end up regretting it.
and buy a lots of gifts for lucky draw. Nothing like the pleasure of lucky drawing. :)
:)
My company will attach some donation forms of charities along with bonus, so that we can remember to help the needed. I'd recommend you attach these two forms:
FSF
EFF
Well, if you decide that the health of the company requires that you put some of that potential bonus money away for future needs... you better hope none of your employees reads Slashdot and gets bitter that they didn't get the full $1500!
Bonuses are great, but the have a habit of becomming an institution at many small companies that owners use to "beat-up" people with rather than simply a "gift". Example: I work at a company that used to [from older employees] give out good bonuses. Well, they use it as a "recruiting" tool [blah, blah] to get you to work there, but last year in particular, they beat everyone up all year about it. "You won't get bonus unless..." That lead to all sorts of stupid statements from management about "lazy" and "stupid" [but working 60 hrs./week!] employees. It was a nightmare...It was abusive. If they didn't want to do them, then just say so...execpt they were "promising" them with all sorts of "strings". Promise yourself right now NEVER to do that! it leads to a good thing for the employees just turning you into a tightwad arse. If you're going to do it, make it no-strings-attached, this-time-only. Don't promise it if you can't expect to do it again, and don't hold it out there if you don't intend to deliver...
in short, keep it simple.
The company I work for has a sales sharing plan paid out every two quarters. Of course one of these coincides with Christmas. A portion of the revenues are shared equally among all employees with over a year of service. Employees under a year of service get a half share (prorated for the first half year). Fortunately we are having one of our best years ever and the summer bonus was excellent. The X-mass bonus is predicted to be even better. In the past the bonus has been both below and above $1500.00 CDN. Therefore the amount suggested by the story poster is in my opinion quite respactable. I do suggest that in the future the poster should tie the bonus to the company's performance by a mathematical formula so that there is a definite motivational reason for the employees to put forth that little bit extra.
134340: I am not a number. I am a free planet!
I agree with those advocating about a $500 bonus, and keeping some of that money back for future "incentives". $500 is a great bonus for a small business to be able to manage, so the employees will appreciate it. Then, with the rest of the money, you'll be able to save up and plan for future bonuses. Being able to give a bonus every 3 or 6 months is a great way to motivate people!
I've gotten $100 bonuses in the past, and although they represented maybe $1 per hour of uncompensated overtime put in, it meant something to me to at least be recognized, and to have some "mad" money to spend.
Holding back money and being able to *regularly* give bonuses helps a lot too -- once people get bonuses, especially around a certain time of the year, they get to like them... being able to make this a regular thing (given that the company has good performance) will go a long way towards retaining good employees.
It's a strange world -- let's keep it that way
And no, there is no amount of money that is ever "too much".
They're putting dimes in the hole in my head to see the change in me.
"You can afford"?
That's the big thing. Does the company have a decent cash reserve to deal with any possible problems, as well as a stable cash flow? I'm sure that in the end, they'd prefer having a job for the long term than the cash now.
Anything in the range of one pay period should be considered a rather reasonable bonus IMO.
The standard in the high tech industry is 10% of annual salary IF both the company and the employee performed well during the year. Higher if profits were absolutely fantastic.
Adjust as necessary. For example if the company did OK but not great, the amount might be capped at 5%, and only employees who performed well would get that full amount. Average employees might get 2% or 3%, and low performing ones 0% to 1%. If the company did poorly, maybe you can't afford bonuses, or maybe you can give bonuses only to the very few very top performers.
Considering that many people don't get bonuses, I'd assume any amount would be much appreciated. Then again you may get in trouble both ways. If previous employers fed gobs of bonus money to one of your workers and the other never got a holiday bonus, then to one the bonus may be an insult while the other is joyfully gracious. There's only five of you and you're probably a pretty close group, why not ask them about there previous jobs holiday bonuses.
I and about 25 others recieved $1000 cash in 100 dollar bills and a bottle of 1990 Dom Perinon(?). That is less than your 1500$ limit, but is a nice touch. the fist full of hundreds is exciting, and the dom is something that none of them would buy by themselves, but shows that they have class (even if they don't know how to spell it...).
Why not bring good for both of you? If this is a tech company upgrade their workstations. This keeps the money in the company but it also boosts the moral of workers and feels like you often think about them and the long hours you put in. It would work even better if you were to suprise them with say a nice dinner, and have a bunch of new equipment at the front of the room. If you want your employees to choose have a catalog with ONLY their options avaialble to them so they can pick and choose what they want out of what you deem appropriate.
-- botsex is {grep;touch;strip;unzip;head;mount}
$500 or so as a bonus, an extra day or 2 vacation at christmas time, a $100 - $200 gift for each employee, maybe throw a small holiday party for your employees and their families at a nice local hotel(where you could present their gifts and bonus checks as well as announce extra vacation time for employees). And make sure to put some away for the future.
You would know better what your employees would appreciate. 5 employees are easy to please...try pleasing 200+ employees...
By making sure to spend a little in a few different ways, each of your employees will find some benefit in the way you have spent the money. This also requires you to do a bit more work than a gift or bonus alone, but it will likely not go unnoticed.
That is an amount that they have to declare as income, which means that after taxes they get about 800 or 900. I'd go for something smaller. Throw a party or take them to a really, really expensive and nice restaurant. Then give them about $50 to $200 gift cards. There is an american express card that can be used like a gift card in several places. Basically 'mall money' that can be used at many mall stores. This way they get some kind of bonus but it is more of a gift that they don't have to declare on their taxes.
Only 'flamers' flame!
Does slashdot hate my posts?
In the two jobs I've had that has givin bonuses, ive received an extra 100 in my paycheck for two years at one place and 50$ my first year there. And another place would have a big fancy (read: gettogether at a hall and serve horible expensive food.) dinner and 50$ gift certificates for the mall (for tech support, and the higher levels got more)
How about shares or options? Given that your company is stock:ed ofcourse. Its a great way to give something to your employees and at the same time coach them to do even better in the future, since company progress means their shares rise.
What are some bonuses the Slashdot crowd has received in the past?
The finger and a pink slip. The boss called me at 3am because a virus killed his windows machine, in my delerium I told him to "stop being a cheapskate and buy a mac" like all the other lawyers I know. I was so tired at the time, upon awaking the next morning, I didn't remember the whole incident and the boss cussed me out.
Considering that a poor American is much better off than like 3/4 of the world, that extra money would make a huge difference in other peoples lives who are much less fortunate. Not to mention there might be a tax benefit in there. I guess consider it an alternative to putting an extra grand in people's pockets who are already "rich" by any standard in the world.
The sending of this message pretty much inconveniences everyone involved.
Give them what you can...$1500 is not to much or not to little they will thank you and give you a good performance next year.
Here's a real winner! Give each employee one of those round cookie tins with the different kinds of butter cookies. I really like the flat ones with crunchy sugar crystals on top. Since you give it to them at work, they can keep it there all for themselves and not have the kids inhale them within five minutes. The decorative tins also add a truly festive air to the office, well into July.
If that's not an option, then hand out bulk Christmas cards containing a $25 certificate for a small local restaurant. If they haven't ever heard of "Ma's Pasta Shop" so much the better, they'll welcome the push to get out and experience new things! They may even go back, having discovered a new favorite restaurant; the gift that keeps on giving!
Seriously though; employees really do appreciate a generous gift, and will remember it for the rest of the year. I'd suggest giving part of the gift in cash, maybe $750 to $1000. Also have some seasonal gourmet foods sent to their home address; Honeybaked Ham gift packs are always fantastically delicious, and Pittman & Davis oranges and red grapefruit are the largest and sweetest you'll ever see. Remember, it's not all about the employee's reward and morale boost. This is an opportunity to show his family that you care about both him and his family, and the workplace isn't just where Daddy stays late and comes home tired and grumpy.
Also remember to give the cash bonus well in advance of the actual holiday. Not only do you catch the potential celebrators of other religious holidays, but you give them a welcome shot of cash for the gift-shopping season, which is often very stressful for tight budgets.
...
Whores!
Lots and lots of whores!
You run a tech company, right?
Just imagine the loyalty they'll feel toward you, once they can honestly tell their Dungeons & Dragons buddies that they finally lost their virginity in real life.
Opinions on the Twiddler2 hand-held keyboard?
Just because you can afford 1500$/employee doesn't mean you have to give it to them.
If it was up to me, I'd give them 750$~ or so and a 3 or 4day weekend for each of them when time allows.
I only suggest this because the company I used to work, everyone got a $5000 bonus every year (or more). Then one year it ended up being 3000$, even though the company did better then ever, and we were all bummed out. I know I know, flame me for bitching about a 3k bonus instead of 5, but when you come to expect it for bills and such and it doesn't happen, it's a blow to moral. So just start em out small, make sure you can afford it. Remember, even though a bonus is basically a "thanks!" your employees will get used to it, and when you hit a bad year (if) and can't give out bonuses, it'll be a slam to their moral. So start out small, make sure you can cover things, then slowly increase it.
Looking for hardware (Currently need: Large Etch-a-Sketch) Have one? See my journal!
The cash just get's poured into giant drain of life, buy a cool gift that will clutter up their house. I would much rather have something I wouldn't buy for myself, some sort of laptop for instance. Crappy cheque's just get taxed.
Tax me I'm Canadian
Whatever the bonus, go to the bank and get a bunch of $1 bills. If the volume is big enough, go down to Office Max and get a bunch of attache cases and fill it with the dollar bills. If you really want to screw with people layer $20s on the top... Or have some fun and find $2 bills...
Bleh!
I hope you are able to ignore all of the silly suggestions to donote to charities, upgrade workstations, and give non-cash gifts.
Donating to a charity in someone's behalf is one of those anti-gifts. It's a gift that isn't a gift. It says, "Here's some cash but you can't have it." And if you chose the charity, you're saying "And I won't even let you pick where it goes." Lovely sentiment.
Upgrading a workstation is, as someone else pointed out, like buying your wife a vacuum cleaner. Keeping workstations fast and efficient is in *your* best interest, and I'll bet you get to write-off the depreciation. It's another anti-gift.
I believe those who say they really appreciate non-cash gifts, but not everyone does. Do you really want to roll the dice? I've sure received a lot of stuff that just missed the mark. Let your employees get something they want, not something the boss wants. Besides, I have a suspicion that a gift large enough to be a decent bonus is probably taxable anyhow. A gift that costs cash to receive would be a huge anti-gift.
Cash is king. It says, "Thanks for all the hard work, and sorry about the chunk the tax man takes (can't help that), and I know you'll make good use of this."
My suggestion would be to give them each a 40G iPod and take them out to a nice lunch to show your appreciation.
Seriously, once the cash is gone - it's forgotten. The iPod will be there all year round.
I work in retail to pay for college.... Godiva gives a decent discount (10% right now) on orders over $600. They sell high-end chocolate, if you're curious. Yes, I work at a retail location for Godiva. No, I don't get comission.
moox. for a new generation.
Although I recognize your intent, I once recieved a 'donation form' in our office mail, and it suggested that the organization had a donation plan where you could get a few dollars taken out every paycheck.
Unfortunately, as the charitable organization was the one in which I was employed, it came across to most of us as 'we're paying you too much, will you please give some of it back?'
If you're interested in a charity, make a donation in the name of the company, and be done with it. Or perhaps offer to match anyone's donations to an organization [perhaps set a cap on matching, just incase someone has some savings they decide to dump that you weren't aware of]
Build it, and they will come^Hplain.
According to my dutch friend, they give you at least 1 months wages.
Yhey might do more, but that seems pretty standard there.
CJC
So what I am saying he could make a decision as owner of the company that 50% of the profits will go back to the community that allowed his business to thrive. Not to mention there is probably a tax benefit involved as well. I look at this as a case of a wealthy person trying to figure out what to do with his money. And my solution is give half away... the other half to the people that helped his business acheive its success by doing their jobs.
The sending of this message pretty much inconveniences everyone involved.
I think some here sort of alluded to this, but ask them as a group, or even individually in private, what they would like (while being up front with what/when etc., you can offer of course), and even how or when they'd prefer it- like a customized thing- ie. in the summer, Chinese/Jewish New year, Halloween, July 4rth., for their birthday, as cash, a gift, a stock option, dental plan, a trip, a longer/earlier vacation, more paid sick days, etc..
I think that the very act of asking them these kinds of things might, in themselves, feel like a bonus, too, and keep you in a good light...
Probably one of the better investments you can make.
Give them as much time off as you can. Being able to spend time with families, friends or just chilling. You could even hire temps to cover for some of the time.
Our bonuses were based on growth and individual's salaries. By basing it on growth rather than profit, you're less likely to overcommit just before a downturn, I guess.
I work in the UK and we just got our Q3 bonus. How it works at our company (Business ISP) is as follows:
Our bonus is based on 20% of our annual salary, or 5% of our annual salary every quarter
Based on how well we do, we get a percentage of the bonus - for example this quarter our division is getting an 80% bonus - so in effect 80% of 5% of our salary - depending on how well we do the bonus % changes - one country did really well adn is getting a 125% bonus!!!
Makes it fair to be tied into salary, and also into business performance!
I worked at a small financial agents office for a few years doing IT. The first year I was there for christmas the boss took us and our signifigant others (about 10 employees plus others) to a fancy resturant (about $50 a plate) and then to a theater for a play. The next year we had a christmas lunch at a local resturant (some chinese place i think) the next year we had subway sandwiches brought in by the bosses wife the day b4 christmas. Oh well what are you gonna do. But before all that i worked at kiosk in a shopping mall doing photo retouching and got a $300 check for christmas (about a 2 weeks paycheck for my part time work)
This last summer i was an intern at qualcomm and got a non cash reward for good work and was able to choose from a list of rewards including things such as hour massage, camping equipment, jewlery, dinner, sporting event tickets, etc I ended up chossing a dinner dance cruise around san diego (about $100 value), which my wife and i enjoyed very much however i ended up spending about another 50 on drinks and tip but it was worth it. I am not interning there now that i am back in school so i dont know what type of christmas bonus goes on there.
What is this strange concept? Is it anything like the mythical "raise" I keep hearing about?
Seriously - this year I'm hoping my bonus is a job with a different company. *sigh*
(posted anonymously for fear of reprisals)
If you can afford $1500 each, it looks like a week off with full pay is a nice way to say thanks.
Yesterday was the time to do it right. Are we having a REVOLUTION yet?
...and lots of it.
Money is much more appreciated than presents, even if they're expensive presents.
What you can do is give them money (say $1200), and offer them champagne, or even geek stuff @ thinkgeek. $300 makes nice presents, and $1200 money is always appreciated !
____
nico
Nico-Live
why not say $1200 bonus and then prehaps a small thoughtful present for each person. That way you get the best of all world?
Or prehaps a company outing
Rus
Cheap UK and US VPS
You said 5 employees and enough for 1500 each? 5x1500 = 7500.
I'd go with an even grand each. That would leave 1500 that could be used for a group gift like a foozball table, or local game server or just some things to nicen up the office (let the group pick or vote on stuff).
And yes, my math is right. 5x1000=5000 which would leave 2500, but I don't see how it's fair that *YOU* don't get to have the same bonus since you probably worked just as hard if not harder to keep them all so happy. Besides, you've never gotten a bonus and someone who puts thought into something like this no doubt deserves it. And if you were including yourself in the 5, then make it 2500 for the 'make the office a better place' gift.
Make sure they understand that this is special. You don't want them to think is is now a regular benefit. In terms of amount, if the $1500 is more than a weeks pay, make it a weeks pay for each person. As a grand gesture give each person a thank you with a $100 in cash and say the rest will show in the paycheck. Then again your accountant can advise you on the largest "gift" you can give each person without having to apply income taxes. A $200-$500 non-taxed gift certificate for amazon will also go over very well. As an employee my self I say give'm the $1500. As a businessman I say give them something they'll appreciate and bank the rest. With this economy, don't spend what you don't have to.
How big is your company? I've done something similar in a company with 6 employees; small enough for me to know what kind of presents the people liked. Ended up giving different gifts of the same value depending on what they liked:
Gift voucher for a travel shop
Gift voucher for computer hardware
Gift voucher for a new bicycle
If you don't know what your employees would like, perhaps you should just ask them what they prefer: a bonus (which will be taxed), gift vouchers for the same monetary amount, a new PC...
Make sure you tell them that this is because as a team, you made a good bottom line; and you wanted to thank them for their efforts. When just giving bonuses, people tend to expect them again the year after and are regarding it as 'appreciation for their efforts', regardless of how the company is doing.
This is a gift from the company, because you can afford it: you wouldn't have given it to the same people who performed exactly in the same way if the company didn't turn a profit.
Okay... I'll do the stupid things first, then you shy people follow.
[Zappa]
Most I have ever been given was a $100 Gift Certificate.
I'd kill for a $1500 cash bonus.
Well I've wrestled with reality for thirty five years doctor, and I'm happy to say I finally won out over it.
If you have 1500$ per employee, give them something like a 1000$ bonus, make a donation to a charity in the order of 100$ each (in their name) and use the rest and have a small office party at your local pub/restaurant. Whatever's left over use to slightly improve work surroundings (IE: coke machine with free pop til the funds run dry, etc...)
It's better to burn out than to fade away
Given the skyrocketing costs of health insurance, your employees may get better benefit from you giving much smaller bonuses (200 - 300) and putting the rest of the extra money towards better health insurance, or, at least, paying 100% of their health insurance costs for a few months.
-Ghostis
Computer Science is all about trying to find the right wrench to bang in the right screw. -T.Cumbo?
Round here we get a bonus of 1 week salary at Xmas. That's fine by me.
If your engineers have been pulling long hours, you may want to boost that to reflect that they're working above and beyond. Better to make the latter kind of bonus contingent on release dates though, so it's obvious that it's targetted at completing work to time and quality, rather than just an Xmas thing.
Don't suck too much cash out of the company though. Employees would rather have less bonus and keep their jobs, than get high bonuses but get fired at the next downturn!
Grab.
Make sure that all of your employees celebrate Christmas. If you've got people who don't -- e.g. Jewish, Islamic, Buhdist, etc. they may take offense at a "Christmas" bonus -- call it a "Holiday" bonus instead.
If most of your employees have major obligations (e.g.: are married with small kids, are divorced with alimony payments, etc.) then just giving them money is likely to end up paying for diapers, toys, etc. -- nothing for them specifically. Consider a gift that they would appreciate and the balance as the bonus. That way they get something they want (like an iPod or a digital camera, or some power tools), but that they couldn't buy if they were given the money. You may be able to spin this as a business expense so that the employees don't end up paying taxes on the gift. Good question for a tax accountant.
Also consider a 'bonus for the office' -- if you gave everyone $1000 instead of $1500 that would leave a few thousand for something like an expresso machine or free soda machine, or a la-z-boy massaging recliner in the break room -- some kind of luxury they get to enjoy all year.
"But actually trying to use m4 as a general-purpose langage would be deeply perverse" --ESR
I would give them a cash bonus, perhaps of $500, and also promise to keep the office fridge stocked with soda the next year. That way the bonus keeps on giving :-)
tasty and delicious
I get to keep my job, but only if I'm really, really, really lucky.
Seriously though, I hope for the future prospects of your company (and consequently the continued employment of your staff) that you manage to become more decisive about this financial stuff. We don't all have the time to help you out everytime you need to make a decision.
FWIW, if it were me in charge, I would never use the words 'Christmas Bonus' or anything involving the word 'Bonus'. I would pitch it as a 'profitability party' and take them all white water rafting, or bowling or something similar with taxis to get them home afterwards. That way everyone has a blast, they know that it's because you got profitable and there won't be another one unless you *stay* profitable. It's also equitable because everyone got to go to the same place at the same time - no percentage crap.
..I ever got a Christmas Bonus from was BMC Software. The way they did it was everyone upto a certain salary level got a $500 bonus. Anyone making over $60K (I believe, might've been higher) didn't get the bonus.
And they held killer Christmas parties. Everyone dressed to the 9s, free food, two free drinks (and then its a cash bar). A separate party for the kids with a visit from Santa and presents. Hell, the 1st year I worked there (actually, it was my 3rd day) they had the Christmas party in Houston. They paid for everyone in Austin to come over (reimbursed $.33/mile. I made money by driving to Houston for that party) and put everyone up in the hotel the party was at for free.
I can't imagine many companies can afford to do this now.
Cruising the internet on my TI-99/4A @ a whopping 300 baud!
I work for a midwestern car manufacturer that has about 2400 employees where I'm a salaried developer in their IT department.
Back in 1999 and 2000 I got around a $4k bonus before taxes. The bonuses for salaried and management was determined by some kind of formula HR devised. I think all the hourly workers got something like $1k-$1.5k.
However, in the past couple of years my bonus has dropped to around 1K and this year we might not get one at all if you believe the rumors......
I used to work at a place that would give 10% of your annual salary as a bonus.
Here's the thing. If you don't tell people they are getting a bonus, and then you give them one, that's great. However, next year you may not be so financially black (hopefully you are though) so communication is very important. Giving surprise bonuses without prior "warning" can lead to frustration next year when no prior warning is given, and then no bonus is given.
What's worse, is when bonuses are written into contracts and initial hire communications, but then completely dropped around the holiday times (like at my company). Nothing spells plummeting moral like breaking promises, especially when they're promises about money.
I guess what i'm saying, is be careful that you don't end up in a situation where expectation is set through non-communicative means. "Well, we got on last year, and i think we're doing well this year..." is trouble.
Be clear, concise, and honest about bonus policies.
There are 01 types of people in this world. Those that understand binary, and me.
I've worked in all sorts of environments. Suffice it to say, despite the CURRENT economy, most of these places were turning a quite decent profit whilst I was there. The following is a list of the bonuses typical of these places (which were both professional - eg Attorney's Office, laborious - eg Manufacturing Plant, and retail):
1. $400-$700 (from the isp that I currently work for)
2. $2500 raise (from the law firm - biggest bonus yet - and I call it a bonus because I got it at Christmas in lieu of a cash bonus for perfomance, and raises were done at the end of fiscal in april.)
3. One 8-12lb turkey (that was from the zoo)
4. $50 Gift Cert to the local grocer (TV Station)
That being said, my expectation is quite a lot lower than what I've seen of the responses so far. However, I think the key here IS expectations. If you set them, be sure to set them early and reasonably. And NEVER fail to meet them. Beyond that, whatever you do decide to give should be sufficient (particularly as this is the first time you've done it.)
Rational people do not rely upon bonuses as a functional part of their budget, and if you give those who do enough early warning that they aren't to expect one, everyone will be apprciative of whatever they get.
The english language is in beta. It's evolving but has not yet reached a level of usability.
The more you give, the more loyal they will be to the company. I once worked at a company that gave out bonus that could be as much as 100% of your annual income. Yes, 100% of annual income! We would have doen anything for that company. The first year I was there, I got a 70K bonus! Unfortunately after the 10K I put in a 401(k), and the federal government, state government, and wife took a chunk, it didn't feel that big any more.
One thing to watch out for is that, this bonus, especially a large one like that, might bump people into the next tax bracket. This has hapened at a couple of places i ahve worked (before I got there), so if you can spare a few minutes, just make sure that this gift, plus salary, won't bumjp people up.
Personally I think the Gift CardAmex Card + Party is a great idea!
Give everyone a good frame of reference so they know what to expect. The last thing you want to do is wind up having people *rely* on the bonus and get disappointed with the Jelly of the Month (the gift that keeps on giving, all year!).
Get off my lawn.
I wonder if any of the people replying and saying "$1500 is great!" are employees of this guy.
Avoid gifts. Let people pick their own. Don't waste the money on a lavish party. Some people will love it but many will hate it. I think $500 is a nice round figure. It's enough to get that new digital camera / flat-screen or fund a weekend getaway (or at least make a huge dent in the cost). I'd also just go with the same bonus for everyone and let people know it's the same. It'll avoid all that petty rumor crap. And if you really want to go back and give more to a star employee, do it privately.
While once employed by a large financial company,
I've received and also allocated bonuses that were:
1) a percentage of my salary
2) a percentage of a pool allocated to my department
3) an extra paycheck
for percentages, a 5-10% of the monthly salary is was not unusual.
Money is much more useful then other gifts.
Thank you for being kind to your employees.
Peter AI6PG
Some people don't do X-mas, so don't throw X-mas in their face. Call it a year end bonus, but kudos for actually giving one! Most bossses give nothing, or a pink slip because they outsourced your job to India.
Remember Clarke Grizwold? Jelly of the month club? Yeah... When you start giving your employess christmas boneruses, they may come to expect it every year. And reasonably so. Therefor you ought to be careful not to give them more than you think you'll be able to afford to give them next year. At least not unless you give them a serious disclaimer.
-73, de n1ywb
www.n1ywb.com
I've worked for a number of years at a small company where we do annual profit-sharing bonuses, and it works well as a motivational tool, and everyone likes the extra money at the end of the fiscal year. But we also are reminded that they *are* bonuses, and if business gets tight, the bonus can and has been $0 in the past (thankfully, this is rarely the case)
Maybe I have just been lucky, but every company I worked for was big on bonuses. Like up to 40-80% of salary type bonuses. Most very successful firms that I have heard about work in this manner. Interestingly enough, these companies were also very successful and had workers that frequently worked 60+ hours a week somewhat willingly. *If* you are willing to be this forthcoming, I would establish bonuses distributed as a percentage of profit(which you would have to reveal to your employees). The system works so much better IMHO if they can directly equate hard work and profitability with money in their pocket in a guaranteed way. Parties, gifts, etc.. yeah those are nice tokens too, but come on now, cash is cash, whether its taxed to death or not. If your employess understand that the success of the company is directly linked to financial gain, your workers will love you, love the company and wont mind putting in longer hours when it counts.
Other thoughts on distribution:
Make it quality based- Good workers get more, bad workers get less.
Give more to the rank and file than to the managers, these things always get around somehow, and alot of faith is lost in the company when a worker feels that a manager, on top of already stealing their recognition for work done, is also getting a bigger share of the profits because of it.
As an alternative, consider giving out a few extra days off or some other non-trivial perk. That will usually be appreciated.
The reason for this is that if you give, say, $2,000 this year and next year you give $1,000 because business took a dip people will think that they are worth less. In a round about way, they are (less business), though the $2,000 bonus is about what they expected...even if they do not need it.
Another alternative: quarterly or monthly bonuses -- given out immediately or at the end of the year. Periodic bonuses are more immediate and if they differ from month to month for obvious reasons (more or less business) there will be less angst about a dip. Consider these equal to stock dividends, and be consistant with what adds or subtracts from the bonus.
A firewall can not protect you from yourself. Turn off what you do not need. Do not use the firewall to do your work.
i would say give as much as possible, but not too much, because if your business starts slipping, next year there may be no christmas bonus... i would say what was said before: bonus=((income-expenses)/2)/employee_count;
"What are some bonuses the Slashdot crowd has received in the past?"
'You won't survive on brains alone' by Scott Adams. Ironic, and redundant because I already had it.
Oddly Draconis
Too cynical to live, too stubborn to die.
I've worked for 3 major Detroit sports teams. Two of them, owned by the same tight wad (if you live in Detroit, you know who I'm talking about), offer minimal bonuses to full time employees and nothing to the part timers or the production people, who bring in most of the sponsor money for a team. Needless to say, we hate working for them.
Now that a third sports team has moved to Detroit, I have the pleasure of working for them too. They do a great many things for company morale, like having a "social committee" who will arrange get-togethers at sports bars for Monday Night Football, or other nice little things, and the company picks up part of the tab. For Christmas last year, they threw a party at the facility (free food and drinks, but not concession food, the good stuff). Then, as a complete surprise (because for a period we were in a pretty bad financial spot), we received a bonus check for $1,000 each. Everyone. Even part-time staff like myself - and that bonus amounted to about 3 weeks of actual pay for me.
Needless to say they will need to pry me away from that sports team with a crowbar. They make work feel like a second home, and that's a great environment to be in. Just be careful the amount you give, because if people start expecting that $1,000 check, it can be a morale buster if it comes in at $500 next time. Make it a little less than you can afford, like $750, or give $500 and throw a party, all expenses paid. It promotes unity and gives your employee that warm and fuzzy feeling about working for you.
I think bonuses are nice.
But if you are _just_ becomming profitable, I think it would be better to make sure you'll stick around till next year.
Just me, but keeping my job is a better bonus then a few hundred bucks.
Also people start to expect them (National Lampoons Christmas Vacation) and that can cause no end of trouble.
In any case keep it small, and give them a larger raise when that time comes around. $20/week more then they were expecting.
A bonus is nice, and certainly would be welcomed, but if you offer a 401(k)[1], put a huge hunk of the money into that.
[1] If you don't, why not? Mutual companies do offer very simple 401(k) plans with low administration fees, and you could just offer a few index funds.
III.IIVIVIXIIVIVIIIVVIIIIXVIIIXIIIIIIIIVIIIIVVIII
Good bonuses I have received: 1) $1000 2) $5000 3) $10000 4) $25 grocery store gift certificate 5) Nothing (see below, as nothing is certainly better then the bad bonuses) Bad bonuses: 1) a box of the ugliest flowers (I use the term loosely) I have seen. They were from Hawii and had to be at least $100, I did a little research. 2) A (wait for it) small dietetic fruit/snack basket. And bad, sugarless, flavorless snacks at that. There are others, but the bad ones really stand out. The were both from a company that "Flip" used to run and sold to CA. I found them insulting and incredibly stupid. Better to have gotten nothing. To the original poster, $1500 is a very nice bonus. Its enough to make a dent in bills or to buy something nice. That makes it a good indication of appreciation.
If you want to thank them at at a personal level, give them a turkey and a Christmas party... If you want to thank them and incentivize them at a professional level...put a formal profit sharing plan into place, to be paid out when your fiscal year ends. You probably can't have an absolute fixed formula as to how to divy up the profits, but some kind of general guidelines are good (perhaps 1/3 of profits to profit sharing, 1/3 of profits to shareholders as dividends, 1/3 of profits retained by company for growth). It would not be bad, either to split up the profits into an immediate cash payment and some kind of deferred, tax advantaged long term scheme like a 401K). And last thing (having experienced this myself), don't overreact when someone you give a bonus to quits on you. View the bonus as something given for past performance...not for the future...
Get them some really nice, comfortable chairs to sit in, and large desks [minimum three feet wide] to sit at, so they have enough room to rest their elbows on the desk. [The leading cause of carpal tunnel syndrome is elbows hanging in the air.]
And upgrade them to 24" flat screen monitors so they don't have to squint.
Take them on a trip somewhere vaguely business related like Comdex or Apachecon where they can all party it up on per diem with no additional tax liability. If you're talking about 1500 per person, that should cover it. You can also spring for show tickets and restaurant tabs which let everyone have a good time, but aren't taxable for your employees and are an entertainment expense for you.
Also, you should consider the morale boost that comes with going to an industry conference, especially if most of your rank and file staff don't ever attend trade shows. Anyway, congrats on your good year.
Hopefully, you know your employees well enough to decide what would be best received (cash, dinner out, tech toys, etc). A combination of things is likely best. Be generous, but don't give away the store. Consider using some of that excess to better fund their retirement accounts (e.g. SEP-IRA). If you give cash, don't forget that you have to deduct taxes up front!
This year my Employer has decided to give me the wonderful gift of an Outsourcing. I have about at 50/50 chance of either getting hired by the company contracted to provide IT services or getting a severance package. Hopefully they didn't mean severed package. It all takes effect December 15th.
Merry Christmas!
Where I work, we close the office and get the week between Xmas and New Year off - with pay. It works out well.
No cash/comp bonus though. Nada.
way way back when I worked for DEC (in the late 80's) we got 'xmas turkeys'. DEC would buy whole truckloads of frozen 5lb (maybe it was 10, I forget) turkeys, and have you collect them in the parking lot at the end of the day. building by building. each year, it was the same.
today, having a JOB is a bonus enough, I think. so many of us are out of work, taking a severe paycut or just contracting here and there to make ends meet. you are lucky you HAVE a job and can GIVE a bonus.
it doesn't have to be big. it doesn't even have to be there. but its a nice show of faith. don't get caught up in the 'percent of salary' game. to have a job is enough. this really is the shades of the 20's depression era, in many many ways...
job stability would be my preferred bonus...
--
"It is now safe to switch off your computer."
If it were me, I'd rather have an extra paid vacation day than the money. Even though a day's pay is less than the $1500 you propose. You can't buy free time.
I worked where Christmas bonuses were distributed.
Then, they were typically about a month's salary, maybe a little less.
Obviously, YMMV.
But definitely go with cash distributions.
Keep it secret until the end for maximum impact.
More than a few folks get themselves into financial jams around Christmas, your bonus distribution will help keep them cheery.
Kudoes for being a good boss.
"Provided by the management for your protection."
First, remember that you will be setting a precedent. Too generous now may make you look cheap next year.
Second, Cash is king. It allows the recipient to best decide what's good for them, and meet their own needs, not eat a ridiculously overpriced meal on an inconvenient night.
That being said, keep in mind the tax ramifications of large cash gifts. Maybe giving everyone a $1500 raise would be a more efficient way to convey the money.
Third, what else can you give to improve your workers' lot in life? Do you provide a company match towards insurance coverage? Retirement contributions? If you're a small startup, you probably don't have insurance offerings for them -- add that as a benefit, and pitch in $1500 or so per employee towards the cost. That will make many people very happy.
Finally, Give them time off. Shut down between Christmas and New Years Day, or maybe just for a couple of days. Startups are notorious for working people to death, sometimes for good reason, and while you seem to care enough about your employees not to do that more than necessary, it would benefit them and you to give them some more time off to rest, recharge, and tend to their homelives. Maybe add a day to their annual allotment as well!
And Merry Christmas. Please remain in this employee-centric frame of mind as you grow your business and become a captain of industry.
Invest the $7,500 back into the company but let them decide how to invest it.
... in short they have the power to override any purchase veto they didn't particularly agree with. Better now they can go get that toy they have been wanting SOOO badly without convincing anybody that they need it - I really want a SMP box but there is no way I could convince my boss that I need one.
... but a twin 18" LCD display says 'I am special' for a very long time and serves as a daily reminder that what is good for the company is good for the employee.
Just a thought : every employee secretly wishes he had some power to do something a little bit different, has something that drives him at work. Give them power, and money is power.
Five $1,500 Amex gift cards to be used 'for business expenses' (that part means you get to write it off on your taxes if you get some supporting paperwork, and they don't have to pay $600 of it to the IRS) empower them mightily (money = power). A case of the good coffee, ten cases of soda that they like for the fridge, a nice twin 18" LCD monitor setup or Bose noise cancelling headset, a DVD burner for their individual workstation, more RAM for the server or their machine, one of those nifty HyperThreading new P4 machines, a session of training, 7 MCSE exams, a new 100 megabit switch to replace the hub, wifi gear, iPod, handheld iPaq, work related hardware for their home office, reference materials
This borders on the 'new vacuum cleaner for the wife' but remember that if they are hardcore techies they LIKE new toys even if they are work related toys. After regular ol' cash is spent (once it hits the bank and mixes with all the other cash it isn't the same anymore) it is forgotten
Because it is something they are spending to improve their quality of life issues at work (and the IRS doesn't steal 40% of it, and their wife doesn't get to steal the rest) they are justified (guilt free!) to spend it on toys that they really, really want.
Finally because it doesn't actually affect their bottom line at home they can't become dependant on the bonus money in their annual budget and if this 'benefit' is only half the size next year (or zero if biz is bad) they are not going to be nearly bent out of shape.
Glonoinha the MebiByte Slayer
Where I work (UK Govt) we used to get 6 monthly performance related payments. Largest I got was about 900 - about 4% of 6months pay. We are now moving to an annual performance related bonus of up to 10%, though no one really expects to get that. I'd say pay some proportion of salary (assuming they are all on roughtly the same)in cash.
"I deny nothing, but doubt everything." Lord Byron
...but it's better than nothing.
I got $50 as a christmas bonus (in cash no less) last year when I worked at an ISP. Then again, they did have to lay us all off because they ran out of money... (since then they've been bought out).
Anyways, for someone like me, a ripe 19 years of age, working for $9.00/hour, a $50 bonus was pretty neat.
Insert clever one liner here.
1001 ways to reward employees
by Bob Nelson, ISBN 1-56305-339-X is a good resource that might help you determine what to give.
Amazon link
Regards, Anomaly
But Herr Heisenberg, how does the electron know when I'm looking?
Don't be a cheapskate. It's a fact that there's no such thing as a bonus that is too big, but you can definitely make a bonus too small.
What do your employees make on average? A 10% bonus is no big deal, and if your employees make $60K a year, then that would be 6 grand. After taxes, they'll get 3 grand.
$3000 will get them a very nice laptop computer. Someone could put some carpet into their house, or some tile on their floor. They could take a trip to Europe on that amount.
Put the money into terms of something they could actually buy, and you'll see that a week-long trip to Europe is an entirely appropriate way to reward an employee who worked very hard for a year, and helped to make your personal dream - YOUR OWN SUCCESSFUL COMPANY - come true.
If tits were wings it'd be flying around.
I know that everyone else would disagree with me but seriously consider not giving out bonuses.
Throw a small party/give a small gift but keep the money and use it to grow the business. Give them the gift of hopefully better job security.
The surprise isn't how often we make bad choices; the surprise is how seldom they defeat us.
Wow. That's really a god idea. Now, before I get flamed for this, let me explain.
I'm sure I'm not the only one (at least I hope I'm not) who has taken a bonus/windfall and bought a tech toy that's marginally useful for work but might not have a really solid business need. I once took a bonus and bought a really kick-ass PDA, which I thine used for some work purposed as well as all the fun stuff I wanted it for.
There's a ton of things that would fall into this category. Maybe a trip to (insert trade show at fun location), a laptop for somebody who might not ordinarily get one, and damn near everything in the ThinkGeek store.
Now I really wish I worked where I would get a bonus. Maybe next job...
It's common practice in the skilled trades to give a worker a few thousand dollars at Christmastime, provided he did a good job all year. It makes the worker happy, it cements his loyalty, and it starts the new year on a positive note. Some organizations give programmers bonuses as well, which seems to have the same happy effect.
I haven't been lucky enough to work for such an organization, and hearing about the bonuses they award always depresses me. I don't begrudge them their good fortune, and I congradulate the organizations for caring about their workers (you don't see enough of that these days) but still -- I wish I worked for one! But I can't really complain, at least I have job security (I work in government) and a roof over my head, which seems to be about all most programmers can hope for.
Kudos for caring about your staff, you're a rare item: an honest (and honorable) boss. Give them the 1500. They'll love you for it, and show you a loyalty other companies can only DREAM of. Don't listen to all the PHB's on this board advising you to be cheap. They're wrong and you're right. You're on the side of the angels, man. Keep to that high road...
Farewell! It's been a fine buncha years!
And the list goes on...
Giving employees a choice in the matter shows, not only that you care, but also that you're flexible and considerate.
Gift cards are ok, and the American Express ones are basically travelers cheques, so they can be spent anywhere. I've always prefered a straight bonus though.
It's important you feel good about the amount you're giving. If you are initially thinking $1500 is good, and you only give $500, you might feel bad about it later. I think giving gifts is a much more selfish thing than most people acknowledge. I think anything less than $100 is kind of cheap, but it's more about how you give it. I had a boss give me a $100 gift cheque at a time when I knew the company wasn't doing all that well and I would have appreciated it alot more if he hadn't been so damn apoligetic about it. I also would have appreciated them not laying off all my friends. Of course this is the same company that would take us to happy hour and tell us what we could and couldn't order, depending on the specials. And that had a holiday party that was a pot luck.
But whatever you do, don't give on of those stupid glass art things with the company name engraved on it, unless you're going to be huge in 5 years and massively flop in 7 and they call sell it on ebay after all their options tank.
That will come out to like 175 dollars after taxes.
Right now I'd settle for a full time job.
Better do not give everything you can - set a lower level, just like 500$/person. Why? Because when (if) next year your company will have worse results - and people will get less for xmas bonuses - they will be disapointed. So better give 500 and save the rest for the next year xmas party :-) :-)
By the way, are you hiring?
Ask them if they want a bonus. Maybe instead, you can put $1500 aside for employee benefits or something. Let them choose a $1500 bonus or a $1500 discretionary spending budget. If you give them $1500, they actually only get $750 after taxes. The tax benefits for you are the same either way.
However, if you setup a descretionary fund, then the employee can spend the full $1500 ( on a laptop, free road runner, free home telephone service, better health insurance, child care, or whatever else can be considered a business item or an employee benefit). Pay for something for them that they're buying any way. It's the same to you either way, but your employee gets twice the benefit if you don't give them the bonus.
This isn't the sig you are looking for... Carry on...
Good lord. This is borderline brilliant.
With $1500, or even half that, to spend on in-office perks for myself or the office in general, I'd be a seriously happy boy. I can't seem to get optical mice with scroll wheel for my three machines, or a docking station for my laptop for both work and home, or a flatscreen monitor... all would be possible with a little work-related bonus.
Plus, the side bonuses of not losing a bunch to taxes... you get some pretty happy employees while keeping the money in-house. And the whole "not dependant on the bonus next year" thought is so true.
I can see how employees might be a little bitter about not getting any take-home, though. I think a $500 take-home and a $1000 "license to spend" might be a great compromise.
Doug
Seriously, what is going to have more impact in your life, splitting the $7500 five ways or keeping it in one nice pile?
I like that idea of not getting employees dependent on a fixed bonus. I also really like the idea of having them decide how to spend the money... it will make them feel more in control and listened to. You could allow them to make the decision themselves, invest up to $1500 on work tools/training, and they can take 75% of what's left over in cash.
So what good is that to those of us who have a life outside the office? For most of us, work is a means to an end. What you're suggesting isn't what I would consider a bonus. Sure, it would make some aspect of my job better...but for most of us happiness in our life away from work is far more important than happiness at work.
At my company, we get annual "merit-based" bonuses in March. The bonus is based 25% on my evaluation (performance), 25% on my department's overall performance, and 50% on the company's performance as a whole.
:)
Last year, my bonus was $9200. I suspect it will be higher this coming year (We're having an even better year!)
And no, we're not a repo company.
You turned a profit?!?!? Can I have a job?
I find that a week or two's salary is appropriate for large companies, but smaller amounts work for the smaller companies. I agree with those who say to hold some in reserve for future bonuses or for a rainy day.
Liberalism...the next best thing to thinking.
$500 is nearly my entire rent payment (in my 1 bedroom apartment). However, in NY City, $500 won't go that far. Which is why it is easier to state it as a percentage of their salary, because there salary probably reflects the cost of living.
The thing to remember is they are going to get screwed on the taxes. Either you have to withhold a bunch of it (which will anger them), or you are creating a rather large tax burden for them (depending on the tax braket they are in). You might want to announce this in advance and discuss what they want the with-holdings on it to be. If you want to be really nice, figure the net withholdings, if you had spread that payment out to them over the year. Withhold that. (I'm not sure that's legal by the way, but it'd be the nice thing to do).
At the company I currently work at, they treated bonus money as a second source of income, and did the withholding as such (which basically meant that all of it was taxed in the lowest tax bracket available, meanwhile, I had to claim it as income for the highest tax bracket I was in). So that wonderful bonus I got royally screwed up my tax withholdings. I planned the year to ensure I had no tax liability at the end of the year, so I could invest the money right away. I didn't figure this out until the end of the year, and I had to scrimp and save to avoid the penalties of taking it out of my investments to pay Uncle Sam.
I'm thrilled about my bonus, I just wish somebody had told me how oddly they were doing the withholdings. That and the liability it was creating for me.
Kirby
One of my lawyer clients gives Christmas bonuses in the range of $6,000 - $11,000 (and these are receptionists and paralegals, not just non-partner lawyers). So, no, $1500 is not necessarily too much. I'd say go with your gut. Give them what you think they're worth, not what convention dictates.
When I use to work for a company, christmas bonuses were around 5k-6k. But really should be how well yah did that year.
Whatever this is a crap idea. Give them the money I'd way rather buy a whole bunch of cool stuff for myself to use on my spare time away from work than cool stuff at the office. Give them cash in an envelope so they don't need to pay any tax on it.
I'd say give them $100. You aren't obligated to give out bonuses, but a hundred dollars or so is a nice gift. Maybe give them a canned ham and $100. You're in business to make a profit, you shouldn't feel obligated to divide the profits by 5 and give everyone a share. You are the boss for a reason.
As for peer advice:
I would suggest you probably want to pay out some portion of the monies directly to the employees. After all nothing says your hard work is recognized than a thickening of the wallet.
However, you probably do want to do something with part of the money to recognize the fact that this success is not only from their individual efforts alone, but their efforts as a team.
It seems really trivial, but you reward the behaviours that you want to reinforce. So, if the employees have functioned well as a team, reward them, in part as a team. What specifically, I can't say, you know your people better than the rest of us. Ultimately, you can probably get suggestions from your employees.
Whatever you decide to do, an important component of your decision is the one you have allready made, that the bonuses will be equivalent. This says to me you are recognizing that each indivdual is part of the team that made success possible. Make sure that this message carries across, no matter what specifics you eventually decide to implement.
Of course, I may be reading more into your intent than is warranted, but this seems consistent with what you have stated. But, bonuses are usually preceeded by work which is above and beyond expectations. You, as the employer want to reinforce that above and beyond work.
I'm gonna venture a guess that you are probably a pretty good person to work for, and your employees likely feel the same way. You pay them for their day-to-day work allready. If you are going to give them something above and beyond, tie it to the ways they have gone above and beyond.
"Talk minus action equals nothing" - Joey Shithead, D.O.A.
"Talk minus action equals
if the company is doing well and the employees know this, they'll expect a bigger bonus. Again, much of this depends on the employees themselves, and how wide a range of responsibility they have, and their relationship with you and each other. Being a small company, i'd venture to guess thet y'all are more on the tight side than just saying "hey" to each other in the halls.
If they know you're making the dough and theres a bonus structure in place, a $100 bonus at christmas is kind of like getting a sweater when youve been asking for a GIJoe with the Kung Fu grip all year long.
Did you discuss a profit-share type bonus thing, or a performance based bonus.
It also depends on the salary of said people. $1500 is pretty steep for a receptionist making $28K, but JESUS GOD will that person be happy. The guy making 4 times as much [im just tossing numbers around as guesses at this point] helping you run the company is not going to be happy when [s]he gets the same amount for a ton more responsibility.
Also, the guy that's been there all year despite the fact that this startup could possibly go directly into the shitter if somethign bad hgappened deserves more than a guy that got hired in September because the company was doing so well that you needed another person.
If It were me, Id take the max amount I can give, use hunk of it to buy them all the same something nice (Like a ham - who doesnt like a nice big ham?) If you have the time, get them somehting they EACH really want that are all about the same cost (id guess the $25-60 range, if youre doing that well.) This makes everyone look equal, being that they get a toy and then a check. At the spur of the moment, all checks look the same in a nice little envelope.
Then split up the remaining accorging to responsibility. Better to have happy employees, and they deserve it.
Just don't feel obligated to give out so much that it hurts the business, and keep in mind that next year you'll probably have more people, then theres the possibility of people getting LESS than they got this year, even if you did better moneywise as a company.
fuck it, give it all away. Thats what I'd do, but then again, thats probably why I'm always living week-to-week.
s'wut i sed.
-I can see how employees might be a little bitter about not getting any take-home, though. I think a $500 take-home and a $1000 "license to spend" might be a great compromise.
... any one of those can easily be justified as work related yet necessary for the home office, and if you were looking at getting a new uberBox or uberLaptop for the house anyways you could use 100% of the $1,500 towards the cost of the machine, instead of the $875 after taxes you might get from a bonus check.
... this is a chance for your employees to be 'that guy'.
Nobody said the 'work related expenditures' excluded 'work related' hardware for your home office, and nobody said that the $1,500 couldn't be supplimented by your own finds. iPod, iPaq, 802.11b wireless, LCD monitor, maybe a new desktop or laptop, books, training materials, laser printer, computer speakers, office furniture, new cell phone, GPS, blank media, DVD burner
In California the top tax bracket (FIT/FICA/California income tax) is what, like 50%? Heck doing it this way means the tech can buy twice as much stuff, or a new computer for his work desk and a new computer for his home desk.
Another unspoken benefit here is that the computer guys HAVE to spend it on computer toys, stuff they want. For the single guys that isn't an issue, but married guys will catch a serious ration of shit for spending $1,500 on toys after telling the wife all year that they can't afford a new leather couch or to replace the carpet or remodel the kitchen or whatever. I have a friend that pretty much has resigned himself to using the same computer for the next 16 years because no matter what happens, the $500 a new box might cost will always go to doing something for his kids. Noble, but if that is the case how does the boss reward the employee?
The 'work related' clause (supported by it being an AMEX gift card, looks a LOT like a work crediit card) is the guy's get out of jail free clause : he can say that whatever he buys has to be work related because the boss says so. Guilt free toy spending spree! Everybody knows 'that guy' - the one that just buys whatever he wants, has all the cool toys, doesn't have to ask anybody or justify his tech purchases, has the John Holmes signature series monitor on his desk
Glonoinha the MebiByte Slayer
$1,500 is not a bad bonus. People with families will love it. It will help offset there Christmas bills.
Trust me money for Christmas is the way to go.
Just give it to them at least a few weeks before so they have time to shop with it.
See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
I know someone who would give foods(this was a while ago), because he didn't want his employees going out and blowing the money on booze. So he gave christmas hams.
In your case offering to put $1500 in a 401k or something similar may help them more in the long run, but otherwise just give em the money.
For most of us, work is a means to an end. What you're suggesting isn't what I would consider a bonus.
I don't know whether your claim of "most of us" above is accurate or not, but it sure doesn't apply to me.
The hours of my life matter a lot to me. I spend too many hours at work to NOT treat it as part of my "real life". I look for work that I want to do as an integral part of living my life, not as a "means to an end".
If I can't find such work, that's a hardship that I work to try to overcome if I can. Sometimes I can't for a while, but I don't shrug it off as "work is just a means to an end".
Most of the time, I care how it goes, and I value being given authority and resources that give me more leverage over this important portion of my life.
An employer who provided a bonus of this sort to me would be giving me some resources for improving things in an area of my life that I care about, and this would matter to me.
"Those who have never entered upon scientific pursuits know not a tithe of the poetry by which they are surrounded."
Give them a couple of floating use anytime days off + as much cash as you can.
This allows the employee to schedule his own time off without fixing a particular week such as Christmas in which the office is closed.
Skip the Xmas party since techies equate those things to cheerleading sessions by management and sales types.
> I have a friend that pretty much has resigned himself to using the same computer for the next 16 years because no matter what happens, the $500 a new box might cost will always go to doing something for his kids. Noble, but...
--Your friend needs to grow a set of balls, and realize that while doing nice things for the kids is a Good Thing, doing nice things for (himself) or (him and the wife) once in a while also helps to keep both peace and sanity. You don't want your kids to grow up spoiled, after all. He should be able to get away with 99% or even (God help us!) 98% of Everything Involving Money Goes For the Kids, instead of his current (completely impractical) "100% for the next 16 years." Trust me, he doesn't want to be the guy that figures "I'll put everything off till the kids leave/retirement..." and then DIES before he can enjoy anything!!
--Even if he puts $50 a month into an account for himself, in less than a year he'll have enough for that computer. You can still be noble without going completely off the deep end.
.
== WolfriderV6 == I'm willing to admit that *I just might* be wrong... Are you??
Members describe bonus plans that actually work: http://techrepublic.com.com/5102-6331-5034644.html
Good points and a good starting place to think about what you want to accomplish with a bonus.
Hey - if you are going to give them a bone, you might as well treat them like you are Pavlov too. Let them know exactly what you liked about their performance and then set them up on how you want them to do even better next year.
On the last full workday before the holidays, as we walked out the door the boss handed out envelopes each containing ten crisp new $100 bills.
The amount never showed up on our W-2s, either.
That said, a thoughtful gift is also appreciated. One of my big corporate gigs gave everybody an expensive fruit basket -- unlike a ham, even the vegetarian employees could enjoy that.
I suppose it would still have offended the hardcore organic vegans, who would find fault in the use of pesticides and such, but I'm not going to complain when I see oranges bigger than most grapefruits, and yet also sweet and juicy...
I do not deploy Linux. Ever.
Just a thought : every employee secretly wishes he had some power to do something a little bit different, has something that drives him at work. Give them power, and money is power.
I'd still give them a little in cash, but this is an excellent notion. Not only will you learn about what workers really think they need, but you'll also get them feeling a lot more responsible for the company. One guy I know does this on his own; he just figures that 1% of his salary is given to him by his employer as discretionary work spending, because his employer knows how screwed up the purchasing processes are. He buys hardware, toys, or whatever else he thinks they need.
My other tip comes from when I used to work for financial traders. All the staff had a nominal salary, their market value. But anybody could take a lower salary and treat that as a bet on the company. If the company was even on the year, they just got the deferred salary as a bonus. If the company was up or down for the year, the deferred salary was multiplied accordingly.
It doesn't work for everybody, but if your employees are financially savvy and you're short on capital, this is a good way to go.
You are brilliant. Can I come work for you?
Envy my 5 digit Slashdot User ID!
Give each employee a $500 holiday bonus, throw a really nice party for them, and then donate a big wad of cash to your local Hospice, in your company's name on behalf of all employees. Donations to Hospice are tax deductible too. Last Christmas, a friend of mine was laying dying in our local Hospice from terminal stomach cancer, he passed away in January. Our local Hospice is always in financial hurts, I'm sure yours could use the help too.
One word: Hookers!
...in the Jelly of the Month Club!
Seriously, if you can afford $1500 each, give them $1000 each in cash (who doesn't love cash?) and put the extra $500 back into the business in a way that will benefit them... like workstation upgrades, or an old Asteroids machine or a foosball table in the break room or something.
-Not only will you learn about what workers really think they need, but you'll also get them feeling a lot more responsible for the company.
One more thing, they are probably going to be a little more careful about getting a good deal on whatever they buy. The funds in their slush fund are limited and if a guy uses a little discression (catches hardware on sale, for example) he can make it go a lot farther. I am guessing he would be more likely to spend it carefully because it is 'his money'.
Glonoinha the MebiByte Slayer
Or something cool for them to play with. Something like a geek status-symbol.
My job may be a-typical since I work for a small military R&D/Engineering firm (~50 people) and we've been doing a pretty brisk business lately. Our annual bonuses are 17.5% of our salaries, on average. The entire company is included, from the top engineers and managers to the people that sweep the floor. On my $48k salary, I received a bonus of $7500 last year.
My firm has an interesting policy in this regard: We offer something like half of the profit in cash, but any money they put towards new office equipment for themselves (ie, computer upgrades, etc) we match. You get employes that are happier at work, and since we retain ownership of anything we buy under this program, it increases employee retention. In the unlikely event that someone does leave, you have an upgraded office for someone else!
caritj.org
I have received nothing (many times), a frozen turkey (numerous times), a week's pay, and a month's pay.
I expect nothing, so anything is appreciated.
I think a month's pay is extremely, and unusually, generous.
Bottom line is, bonuses, other than those delineated in work agreements (which aren't really "bonuses" now, are they?) are just that; a gift. Give what you think is generous.
I think that any amount is appropriate; $20 should be appreciated.
First off, do your employees read /. ? If so they amy be thinking they're getting $1500 and feel ripped off now if they don't :)
Next, think about the future from their point of view. Unfortunately $1500 would seem great to them now,. But if you can't afford anything next year will they feel slighted? I'd include thinking of next year (and what may not be there) in any equation. The difference in thinking you're getting $1500 and getting nothing vs thinking your getitng $300 and getting nothing can be quite significant.
Don't just put money in their pockets. You have a small company do something for their families, have a really nice (but not extravagant Christmas dinner) with the families invited. This will help your employees feel closer to one another, and make them more likely to stay.
Definitely look at using some of the money to grow your business and make that part of their present. It's great if things are good now, but it's better for them to be good for the long run. But make the imporvements something that your employees can see as benefit to them. (Not advertising for god's sake).
Wrap it all up together and give them their checks and annouce how you're going to grow the business at the Christmas dinner. Give them a feeling of security and belonging to something special as well as cash to buy things for their families.
P.S. Congratulations on putting yourself in a situation to be to do this for your employees.
Money is always the best present, because people can use it. Though it doesn't evoke the most appreciation. Appreciation usually comes from presents, because the person is tied to the present.
If you have 5 employees and can afford $1500, that's $7500. It can be split up three ways, money (for a token gift), a gift (to show appreciation), and a better workplace.
That said, each person could receive $300. (It's a nice token that'll give them a night on the town, plus help then buy their personal latest toy, or make another car payment). Then you could spend another $200 each on gifts, such as tickets to a concert, better computer monitors, or some gadget. That'll leave about $5000. With that, buy a coke machine (from Coke, $750 startup fee, plus $75/mo) plumbing will cost about $3000. Syrup costs about $40 a box, and CO2 (after the outlay for the canister of about $100) will cost about $20 to refill. That'll leave about $1000. Use that to buy a refrigerator/freezer, and put ice cream and treats in it weekly.
If you do that, or something like it, you will show appreciation, they will get money and gifts, and their entire working experience (which is exactly what you re showing appreciation for) will be enhanced, greatly. Free food is the cheapest, and probably most successful, way to make employees happy. The Coke machine is something i once had, and there is nothing like filling up a coke from your own personal fountain.
Have you read my journal today?
A membership in the Jam of the Month Club. Give the gift that keeps on giving!
Have a great party and give out very nice bonuses.
Nothing better for moral than a great party where those who worked and suffered, like significant others, can have a good time. Then give out the bonus and make it even better.
Granted it would deduct a bit from the bonus for the party fund but not a whole lot per person overall.
The ecconomy is imporiving, save most of the money in a seperate account. Next recession (and there will be one, everything runs in cycles - quit blaming it on any politition) use it to either to lay off one less person (if you see your buisness big enough latter - be honest), or give a surprize bonus to those left, a surprize that can help the ecconomy.
Firstly you whould make it clear that it is a one off.
You should also consider if you want to make it regular now that you are in profit. I would suggest a profit related formula which is what all my employers use - people do not get unrealistic expectations, and you do not have to pay out as much when times are hard. You also need to make the formula robust (what fill it be workable if you take on another five people?)
The amount is not a lot, but that depends on where you are. It would not be a particularly big bonus for professional people where I have worked (investment management/investment banking the Britain, same sectors and software in Sri Lanka). However those are examples where people expect a high proportion of their income to be from bonuses, you need to establish what industry norms are where you are.
Doing better than industry norms makes people feel good.
The bonus will also make employees feel that you ahve confidence in the future of the business - important for a start up - you are unlikely to pay out if you are not confident you will need the money.
If you read my profile you see I work for the largest ISP in america, well really world wide. Just got informed no bonus this year, MAX raises were 2% compared to 7% last year, and about 50% of the people got no raises at all, including me.
I really feel the love working there. Any bonus you give to an employee in any way is a great thing as long as you do it with good intentions.
First off, good job thinking of doing bonuses. Not enough companies do that.
Give out $500 this year, and bank the rest for next year in an account you won't touch. Unfortunately, some people that get this money might come to "expect" it next year, and grow resentful if they don't get it. (I know, I know...but some people are like that). Better to give a little less over a longer period of time.
I do like the "What would you buy yourself for the office" idea, but I'd do it well after the Christmas holidays, so it's more an "out of the blue" surprise.
Good luck on your running business.
I used to work at Cintas, a uniform supply company. I was 17, and worked in the factory.
You must remember though, we were paid hourly, not on salary.
We were all given an hour for lunch, which was catered, and had real chefs there, making some damn nice au gratin potatoes and a turkey and shit.
As we were leaving that night (I worked 2nd shift) the boss asked everyone over the PA to come to his office as we left, and he handed out 5 pound frozen honey glazed hams. They weren't the best (Sams club brand), but, being this young, and getting a catered diner and a ham, I was damned happy.
I'd have to say cintas treated its people very well, theres a reason we were called partners, and not employees.
Anyways, in your case, I'd say give them 1000$ now, then, give them 500$ during the summer or something.
You could do what Dean Kaman(Segway) did one year. he gave everyone of his employees their yearly salary as a bonux!
2 years ago each employee received two weeks pay as our Christmas Bonus. At the time we were completely shocked at this kind gesture. However, last year the same people were disappointed when they only received the $100 traveler check. I would say for me anything from the boss is a bonus. Rather than taking the money, I would appreciate them giving me time off and making me take it. There are so many other ways to say thank you than making it monetary. In the end it will cost you money, however, how much depends on what you decide to do. One thing to take into consideration are those who will not receive a bonus from you. Are you going to keep it a *secret* from them? If so, what will keep those you do give a bonus to from talking? For me it is nice to know I am appreciated and all those extra hours I put in have not passed without anyone noticing.
If you were my employer and you gave me a $1,500 bonus, I would be completely stoked. I don't know about everyone else but Christmas is a hard time for me financially. I have property taxes that are due around this time, my daughter's birthday and then Christmas a few days later. Anything additional helps. One more thing, it is nice to see a boss that is willing to thank his employees and kick them back some of their earnings. It is rare to find someone that is not only concerned with the wad in their pocket.
alias dir='rm -rf
I have received bonuses which have been more than that, and I have received considerably less. In the cases where the bonus was low ($50 to $150) it probably caused more ill-will than not giving anything. What the company said (different companies BTW) was something to the effect:
To show our appreciation for your efforts over the last year, we are making a bonus payment this year.
When the bonus is $50 before tax, and you think back to the number of hours you have worked, and the dedication you have shown, that level of payment comes close to being an insult. It would have been better spent on a Christmas party or something similar.
I wouldn't bother giving them such a hefty amount, only because it may set expectations for future bonuses. That's been a problem I've dealt with in the past -- coworkers of mine expect a set amount only to get less than they anticipated, and it screws up their plans/budgeting. I agree with whomever suggested giving $500, and setting the rest aside for future bonuses. Nothing builds morale like unexpected bonuses after a project's been completed.
I was working for a small company, and the boss decided we had a good year, and gave us all a bonus. Now, I was 24, single, one job, no consulting. He gave a $500 and a nice 1099 to go with it... (he refused to run it thru payroll) guess what? Nearly $300 went to tax, and about $200 went to finding someone to file a full 1040 where I could have filed a EZ form myself. Thanks boss, tax time up 400%.
You might offer them a choice of things: offer the cash, but also offer paid time off equal to the money, or mix-and-match -- I'd take a few days and $500. If you have big discounts on items with some appeal to your employees then offer to buy them something at your reduced cost with some of the money. My wife would freak out if I told her I spent 2/3 of my bonus on a computer, but if the company gave me a really nice computer AND software AND some cash, she wouldn't mind. Some people might even prefer it as a short-term raise (useful when loan-hunting or job-hunting) or as an improved health-care plan.
The point is, what's good for one employee may not be good for another. Letting them fit the bonus to their wants is a good thing.
//TODO: Think of witty sig statement
Men aren't offended by the "men are useful with tools," or other such things implied by a gift of tools, in fact they're useful.
A gift that, alternately, implies a woman's place is at home cleaning might be bad depending on the woman. Other things such as cooking pots are usually taboo, but my mother was very pleased to get a new stove.
Even a guy might be slightly offended if he received power tools and a broad hint that "now you can more easily fix XYZ that I've been biatching at you about for the last month"
I really hate when people say, just give the money to charity - like I don't have charities of my own to give too (and charities that I will never give to) - The biggest of these scams has to be the United Way, oh the "company" will pay the united way overhead - all of YOUR money will go to charity. Well thank you very much, I can write my own check to my own charity and have that charity get all of the money that I want without any overhead (ok a stamp, envelope, and check)
I have mod points and I am not afraid to use them
I've worked many places that in the job interview mentioned Christmas bonuses as a possibility. Only one employer ever came through - and it was in the financial industry, so it was $11,000. Yes, really. Paid off the credit cards, bought a Titanium and took the wife to a fancy bed and breakfast for a couple of days.
Too bad the place was otherwise like taking a vacation in hell.
The next Cmdr Taco duplicate will be ready soon, but subscribers can beat the rush and see it early!
Fantastic. One point you failed to mention, those 18" LCD's (or whatever they buy) will stay within the company when the employee does eventually leave, meaning you still have something to show for the bonus you gave them, along with happy employees.
I've worked at a graphic design print shop for about a year and a half now. Last year we had a great year because some of our competitors left town and we were able to produce some really nice, public work on a few projects. So our boss gave us two days off before Christmas but wante dus to have an office party with our wives, girlfriends, friends, and ex-coworkers (that we're on good terms with). So me and the guys got a few days off and came back for the Christmas party on a Friday night. When we came in we noticed that all of our workstations had been supremely upgraded. Gone were our old macs. We got brand new G4s with hi def monitors, ipods, huge Wacom tablets (special ordered from Wacom with our company logo on them), 5.1 speaker systems, great personal headphones, new office phones, new high back leather chairs. The works. On top of that he gave us each $500 bonuses and $200 business check cards so we could buy more stuff for our workstations. Needless to say we were raelly happy and not one of us has quit in the last year. Sure, we know we're not getting new G5s this Christmas and we already have all of our great goodies, but we know our boss respects us and wants us to be happy at work. He could have given us bigger bonuses and gotten us the computers later, but he wanted us to be really happy and motivated for the next year. Plus, I would have spent all that money on a bunch of crap anyways, but now I have the work area possible, a personal ipod, and happy worokers to deal with everyday. Wouldn't give it up for anything.
It's not stupid. It's advanced.
In high school I worked at a small town hardware store.
The one Christmas I was there, the bonus was this really crappy knockoff cologne and perfume ("smells like Drakkar!") which, for some reason, they'd been trying, and failing, to sell.
Don't do this.
Everyone likes monkeys.
1) Call an IMPORTANT COMPANY MEETING
2) Talk at length about the difficult economic times we are in
3) Cite several examples of competitors that have gone udner.
4) Mention the troops dieing every day in Iraq
5) Go on and on about similar depressing topics
6) Express the difficulty of running a small business
7) Finally, announce that this year the accountant (a refugee from Arthur Anderson) has come up with some really amazing tricks and it is unlikely that you will need to fire anyone.
8) Allow everyone to return to their desks and keep up the good work so that no one will be let go next year.
9) If anyone complains, remind them to be greatful they have a job.
Unless you don't think we^H^H they don't read slashdot.
The Kruger Dunning explains most post on
Trendy toys and gadgets that I bought for a job I worked at 5 years ago is going to seem silly to me. "Yeah, I remember back in 2003 the boss let us buy anything we wanted, dude, that super fast DVD writer and 18" LCD sure was sweet." It just doesn't get my rocks off.
No.
If you give your staff a bonus of $1500 they may be miffed, after taxes they might be left with about $850 or so. Which is probably ~= 1 weeks pay. So for busting their asses all year to earn you a profit you give them an extra weeks pay!
.. or personal gifts, such as the Ipods or gifts certs for some fancy shop.
With bonuses unless it is a substantial amount of ones yearly salary it may have the reverse of the intended effect. In that it may give your staff the impression of "is that all I'm worth?" Especially, if your dealing with well paid professionals.
Some of the posts had some great ideas, like the techie gifts for work; great chairs, LCD screens
Or, (and this is may favourite) offer people an additional week of paid holidays/vacation. Now that's a great bonus, paid additional time off: "you've all done a great job and worked hard we'll give everyone a week off from Xmas (or Dec 25th for non-Christians) to New Years". Plus, you'll get an some extra time off yourself!
Luck
Mick
I have a very small mind and must live with it.
-- E. Dijkstra
Here's the downside to this plan: If some people buy twin flat screens, and others buy nice chairs, and others buy the year's supply of nice coffee, then what happens when a new employee joins with only the standard equipment. You don't want to have newcomers feeling outside the established group, you don't want somebody to have more in their cube than the newcomer. So, if it is going to be something that stays in the office forever, it should be something that the whole group (including those who you haven't yet hired) can use.
Having been a medical professional for 25 years, I have yet to receive a bonus. Occasionally, we will get a "Holiday Bonus" of $25 to $100 (before taxes) or a 10 lb turkey. I am a staff RN. If you are a dept head or manager you get 4 or 5 figure bonuses for "cost savings". These cost savings come from sacrifices that staff make. As usual, the manager gets credit for what we have done, or for sacrifices that we have made (e.g.: giving up "benefits").
Cash works. Give what you can. If it's $1,500 per employee so be it but be careful. It has been my experience that once given, it becomes expected. I would be very careful in the explination of the gift. Explain your appreciation for their hard work but temper it with the fact that the current prosperity may not carry over to next year so that they don't come to expect it. It may sound harsh but as the employer, these decisions have to be made. It's good times now but it may not last forever.
MMORPG Fan? Prove your worth!
Keep this in mind: Once you start giving Christmas bonuses, you can never stop doing it without looking like a complete asshole. Remember Clark's boss in Christmas Vacation? I'm not saying don't give bonuses, but just remember what will happen if the company becomes not so profitable and you decide to not do it one year.
I see it as promising, actually. It is going to come up and explained as thus : Last year the company had a great year profit wise and the owner decided to invest a chunk of the profits back into the company ... and he let each of us decide how to invest $1,500 back into the company to make it a better place for us. I bought the twin LCD setup. Martha bought an iPod, iPaq, and an iMac for doing desktop publishing, Javi bought an SMP machine from Dell because he wanted a dually to experiment with, and Jack went on a 1 week training course for .NET. There are no guarantees that it will happen again, but last year each of us had some serious say so as to how our individual work environments were going to be set up.
Glonoinha the MebiByte Slayer
a set of steak knives. Second prize is, you're fired.
From my experience, just about any holiday bonus will be quite welcome. Many companies tell their employees not to expect jack squat.
When you give an actual gift, rather than money, remember that not everybody likes what you like...In your example, a vegetarian might not only dislike ham, but may actually get very offended.
e x p e c t d e l a y . c o m
I think if done correctly, many of the employees who were recipients of the bonus would be motivated to put extra energy and time into the business, so perhaps psychologically both goals could be accomplished without alienating anyone.
Free music from Jack Merlot.
we each got $100 last year, and then we 'redistributed' it and the blackjack table that was at the place we had the xmas party. (in a co-workers home, not the boss's)
Noone will probably ever read this, BUT:
~$7500 to spend?
$1,000 Amex Gift Card to each employee
Last gift card for $2,500 to be spent any way that _they_ see fit to make the office more enjoyable. Happy workers == More productive workers.
In this economy i think people are happy to just have a job. personally i've never received a bonus and have never considered it a big deal.
:)
But here's what i would do in your situation, one week before everyone goes home for xmas, give them 750 (so uncle sam doesn't hump it all), that will make them very happy, then one day before everyone goes home for xmas, give them another 750 check, which they will be doubly suprised at, and also give them the following day off, so they can be home with their families.
if that doesn't make an employee happy then they have issues
It used ot be a little bigger company 4-5 employees, but it's down to two. I'm the sole employee besides the owner. The Christmas bonus here is generaly 5% (figure low end of IT salaries, but no stress and 36 hr/ weeks).
-AC
Improving the work environment will have a longer lasting benefit than cash.
And improving can be done even if your environment is extremely good
If I'm going to be spending 8-hours-of-my-life somewhere, I want it to be a plesant experience. Spending a third of my life in an environment that's just a "means to an end" sounds depressing.
There are good work environments out there, where people actually enjoy the culture, the company, and the experience while getting paid:
Why not make work plesant enough that people enjoy it.
At the risk of setting up as flamebait, I think it should be remembered that giving too much can inadvertantly set a precedent which could cause problems later. When employees think they "deserve" a bonus is when it becomes a problem. I definitely think cash and a party is the way to go, it helps out with the christmas expenses that we all get. Also, an awesome holiday party on top of that.
I know of a company that throws a really nice party for employees and their families and "shuts down" the last two weeks of the year. They then have the option to come in for the two weeks at the end of the year and make effectively "double pay".
Haven't had a disgruntled employee yet because they don't have to work if they don't want to, but those that need to can.
Give them a little (maybe a 1%) participation in the company. That way they'll imply themselves more and they'll stay in the company. That's what big companies do.
Back when Hewlett Packard was one of the greatest companies in the world they gave 12% of pre-tax profits as 'Profit Sharing.' Profit sharing was paid out twice per year. Almost everyone in the company was included. In good years each profit sharing check would be close to one months pay, in bad years they would be much smaller.
HP no longer gives the 12%. Agilent (a spin off of HP) doesn't have any profit to share, and if they did they would give far less than 12% of pre-tax profits. They both have changed to formulas based on factors like return on assets and revenue growth, with an explicit goal of sharing less of the profit.
Profit sharing had the obvious motivational benefits, but it also made employees feel that they were part of a great company and not simply cogs in a machine. This was part of what made HP so successful.
You can debate whether HP was so successful that it could afford to give 12%, or was HP so successful because it gave 12%. My belief is that profit sharing was one of many things that made HP great. By itself it neither makes nor breaks the company, but it was one important factor in HP's former success.
...I like the idea of "gifts THEN money..."
Any technology distinguishable from magic is insufficiently advanced.
Salaries have been frozen for 3 years here.. just a f-ing raise would be nice.. forget xmas bonus...
---- Booth was a patriot ----
you mean the non denominational consumer holiday shopping season that happens in December ? No my company hasn't had any bonuses associated with it since legal made us stop wishing people a merry christmas for fear of offending. Now a few people mumble happy holidays and most just pretend that nothing is happening....
errr....umm...*whooosh* *whoosh* Is this thing on ?
My now former employer gave bonuses until this last year. Record best year for the Co. too And then gave me a wedding present of a permenant vacation.
here is my two cents:
I worked at a major advertising firm, and while the execs may have gotten 50k christmas bonuses all us proles got were $100 gift cards. I would be blown away by a $1500 bonus. To date (I am now 34 yrs old) the best christmas bonus i ever got was when i was a bagboy in highschool. Every employee got a double check the week of christmas. (Go TEAMSTERS!)
The lamest? well, I worked at good old Razorfish, remember them? for christmas bonuses we got......dum dum dum
Stock Options with which to wipe our asses with. I will never forget:
The sales pep talk that Jeff Dachis gave as he told us: every employee will get 1000 options, we are announcing a 2 for 1 split, so you will actually get 2000 options. If you traded those shares on the open market today, they would be worth 50000 dollars. blah blah blah
Of course, we were in a 30 day lockout then, and the stock never rose above the strike price, and eventually settled around 8 or 9 cents/share. When I got my final e-trade options account summary it read: if you chose to exercise your options today, they would be worth -$80,000.
I think gift cards are the way to go personally. You are a great boss for even considering $1500 bonuses in this day and age where companies only compensate the highest ranking employees with anything decent.
music lover since 1969
This has to be the most asinine suggestion of all time.
For $5000, I will travel you your company's location and personally thank each and every one of your employees for their hard work. For $7500, I will even pretend that whatever product it is you make has made a tremendous difference in the quality of my life/business/whatever.
paintball
See my journal, I write things there
Go get a bunch of small bills (or gold $1 coins) and fill up those burlap sacks with the giant dollar sign printed on them. Nothing says you care like a big Bag O' Money.
I'm amazed nobody mentioned this so far this year. You could get your employees a bobble-head doll with YOUR likeness.
Are you hiring? preferably before Christmas?
I work in a small company and we have 15% of the profit made during a year to be bonus for the workers. The bonus is divided equal among the workers, and the boss gets the same as eveyone else. And if there's no profit, we don't have to pay anything :-)
Personally I think this agreement has made me "work a little harder" to make the the company profitable.
I know one place where bonuses start at $1,500 and one place where they go at least as hight as $7000.
I passed the Turing test.
My standard yearly bonus is $2500.