Slashdot Mirror
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...
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)
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.
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
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.
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.
"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.
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 $200 gift cards. There is an american express card that can be used like a gift card in several places. Basically 'mall money' that can be used at many mall stores. This way they get some kind of bonus but it is more of a gift that they don't have to declare on their taxes.
Only 'flamers' flame!
Does slashdot hate my posts?
Just because you can afford 1500$/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!
I would recommend the following:
* have an awesome Christmas party for employee's and their significant others (~$150-$250 per couple)
* upgrade employee's computers/software where they desire (~$600)
* give them the rest in $cash.
Let your employees know how much you value their contributions and friendship. Give each a Christmas card with a meaningful message.
With luck, every employee will be with you next year. Make sure they know that "this year has been good for the company." If you do this, you will not set up expectations for following years, especially if your company does not do as well.
PS: You don't have an office in Melbourne, Australia do you?
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."
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.
Hell...I can beat that...
I work for an insurance company. For the past three years, the big boss has been telling us about all these different client contracts that we've been getting, and we're making bigger and bigger profits all the time. In the three years I've been here, this is what I've gotten:
1st Christmas: $50, while everyone else got $100 because I hadn't been there for the minimum 3 months.
2nd Christmas: Two movie passes
3rd Christmas: The boss walked around handing out cookies. One per person...
This year, I'm expecting nada as a bonus. Oh, and maybe a uplifting speech from the CEO telling us to keep up the good work and keep our clients happy. Why, I feel so good about keeping our clients happy that that's all the bonus I need.
Now where'd I leave that can of lighter fluid...
Wow. That's really a god idea. Now, before I get flamed for this, let me explain.
I'm sure I'm not the only one (at least I hope I'm not) who has taken a bonus/windfall and bought a tech toy that's marginally useful for work but might not have a really solid business need. I once took a bonus and bought a really kick-ass PDA, which I thine used for some work purposed as well as all the fun stuff I wanted it for.
There's a ton of things that would fall into this category. Maybe a trip to (insert trade show at fun location), a laptop for somebody who might not ordinarily get one, and damn near everything in the ThinkGeek store.
Now I really wish I worked where I would get a bonus. Maybe next job...
Better do not give everything you can - set a lower level, just like 500$/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?
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.
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."
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.