When Clark Griswold received a one-year membership to the Jelly of the Month club in lieu of his expected holiday bonus check in National Lampoon’s Christmas Vacation, it nearly derailed his family’s holiday.
Thankfully, most workers won’t need a Cousin Eddie to kidnap their bosses to make things right this holiday season, according to findings from two new surveys by global staffing firm Robert Half.
More than three-quarters of senior managers polled (76 percent) said their company offers year-end bonuses. Of those respondents, almost all noted that their organizations plan to either increase these incentives (48 percent) or keep them the same (48 percent) this year. Only 4 percent of executives anticipate reducing the amount given to employees.
In a separate survey of workers, 52 percent said they expect a bonus this year. Professionals have a variety of plans for the extra money, including putting it toward long-term savings (52 percent), a vacation in the new year (47 percent), holiday shopping and paying off debt (46 percent each).
The online surveys include responses from more than 2,800 senior managers at U.S. companies with 20 or more employees and 2,800 workers 18 years of age or older and employed in office environments in 28 major U.S. cities.
“While many organizations are upping the ante on benefits and perks to recruit and retain top talent, money still talks, especially if employers haven’t been able to offer salary raises,” notes Paul McDonald, senior executive director of Robert Half. “Giving cash rewards is one way that companies can recognize staff for their hard work over the past year and keep them motivated and loyal for months to come.”
McDonald adds, “Bonuses can be easy to implement and have universal appeal because employees appreciate the flexibility of being able to use them however they see fit.”
According to Robert Half’s blog, year-end bonuses can be powerful tools for reminding staff that their hard work and commitment and the company’s overall growth and success are closely intertwined. Not to mention, in a competitive hiring market, presenting employees with a financial reward — whether it’s to acknowledge individual, departmental, or companywide success — can help bolster retention and even recruitment.
Robert Half offers three tips from its blog for using financial and other incentives to reward and motivate your workers this holiday season:
1. Be clear about the ‘why’ of bonus pay
“No matter what you decide regarding the ‘when’ and ‘how much’ of giving bonuses to your team members, you need to make clear ‘why’ you are doing it. And that will depend on the type of bonus.
“Year-end bonuses provided to all staff and that aren’t tied to performance metrics are easy to explain: They are intended to foster goodwill with employees as well as promote a positive company culture. They are a celebratory reward that benefits everyone.
Employers may also offer one-time bonuses at the end of the year as incentives for individual employees or teams working toward a specific project or goal. For example, the company may be planning a new division, initiative, or relocation in the months ahead that will require a significant amount of time or commitment from the staff. These bonuses are also often structured with specific metrics and goals.”
2. Be thoughtful about how you communicate the news
“If it’s been a banner year for the firm and all staff-level employees are receiving a similar type or amount of year-end bonus, then a group announcement is fine for sharing the news. But if you are distributing an incentive offering, such as a performance bonus, only to select employees, you’ll want to have private, one-to-one conversations with those workers. Some best practices for this process include:
- Scheduling a meeting with the employee — separate from the performance review — to discuss the reason for the bonus.
- Explaining how the amount of the payment was determined and when the employee can expect to receive it. If you previously set metrics for the team member to achieve, and you tracked and discussed that person’s progress toward those goals throughout the year, this conversation will be straightforward — an affirmation of what you and your employee already understood.
- Offering your sincere appreciation for the employee’s contributions. (Yes, a bonus check is nice, but so, too, are encouraging words from the boss.)”
3. Have a solid Plan B for a no-bonus situation
“If, at this time, your business is unable to award year-end bonuses to all (or any) team members, or even create a formal bonus program moving forward, there are alternative rewards to consider.
“For instance, there are the gifts of time and better work-life balance. Employee perks, such as telecommuting options or extra vacation days, can be even more valuable to some employees than extra cash during the holidays.
“Also, don’t discount the merits of a holiday party or an end-of-year team-building event, like bowling or attending a sports event together. If these events are well-organized, inclusive, and fun, they can make all employees feel appreciated and have them looking forward to working together — and for the organization — in the new year. You might also consider giving staff members baskets filled with holiday treats, gift cards, or company-branded merchandise.”
Ultimately, whatever your company’s decision regarding bonuses, the most important thing is to be transparent and timely when communicating about bonuses to employees. And, notes Robert Half, while compensation is always at the top of the list for recruiting and retaining skilled talent, it isn’t the only factor. One of the best rewards you can provide to your staff is creating a work environment where they feel valued throughout the year.
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