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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...
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.
"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.
$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?
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?
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."