What Employers Need to Know About Holiday Bonuses
Holiday bonuses are a great way to show your team that you value their hard work over the past year while easing the financial burden of holiday spending. In 2018, nearly 40 percent of small business owners planned to give holiday bonuses to their employees. This small token of generosity is a fantastic way to improve workplace culture and inspire your workers to remain loyal to your company. However, if you fail to follow the proper procedures when giving holiday bonuses, fa-la-la-la-la could become fa-la-la-la-FAIL.
If you want your year-end holiday bonuses to benefit your business, you’ll need to make sure that these payments are distributed legally and fairly. As an Orlando construction law attorney will discuss in this article, this can be more difficult than it seems, especially when it comes to keeping all of your workers happy.
One-Time Payment, Long-Term Implications
A bonus is a one-time payment, but that doesn’t mean your workers won’t think about it for a long time afterwards. You might be surprised to find that many of your workers have never been rewarded with a holiday bonus. Being the first employer to give such a bonus can result in long-term loyalty.
Of course, many employees will expect a holiday bonus every year after the first one, but if you are unable to provide such a bonus in the years following, remaining transparent as to why can help you salvage your relationship with employees following the disappointment of an absent bonus. Then again, a holiday bonus might just give your employees the spark they need to hit benchmark after benchmark, elevating your business to all-new heights.
Not All Holiday Bonuses Are Equal
Keep in mind that you are in control of how holiday bonuses are handled. You get to choose who receives a holiday bonus and who doesn’t, as long as your decision is based solely on performance and not discriminatory reasons. That said, inconsistent bonuses can create conflict.
For example, employees who are aware that some employees received bonuses while others didn’t will not be pleased. On the other hand, if you attempt to provide equal bonuses to all employees, higher level employees may feel entitled to an increased bonus. If they aren’t appeased, this could also create friction between you and your employees. How you choose to handle holiday bonuses will have a significant effect on your company and your employees; however, one thing is certain: holiday bonuses, when executed properly, are the perfect way to cap off a successful year. Happy Holidays!
If you would like to speak with an attorney from our Orlando construction law firm, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.