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Christmas Bonuses?
Posted by
Cliff
on Wed Oct 29, 2003 11:41 PM
from the what-should-santa-give-you-this-year dept.
from the what-should-santa-give-you-this-year dept.
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?"
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Partials (Score:5, Insightful)
I think that $500/person would be quite acceptable...
Re:Partials (Score:5, Insightful)
Parent
It is Christmas, give them what they REALLY want (Score:5, Interesting)
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.
Parent
Mod Parent Up! (Score:3, Insightful)
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 sh
Re:It is Christmas, give them what they REALLY wan (Score:4, Insightful)
Parent
what a sad comment (Score:5, Insightful)
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.
Parent
What my boss gave us last christmas (Score:3, Interesting)
has to be said... (Score:5, Funny)
Split it up (Score:5, Insightful)
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.
Good for you! (Score:3, Informative)
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!
Staff are your greatest asset (Score:2)
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.
Regional Economy (Score:4, Interesting)
Of course, this assumes they don't have some form of profit sharing. If they do, cut it in half.
Give whatever you feel they deserve. (Score:5, Insightful)
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
Re:Give whatever you feel they deserve. (Score:2)
never give your wife a vacuum cleaner as a 'gift', under pain of death
And I agree completely... a somewhat useful gift is more valuable than the cash equivilent. See my other post here...
if you can't give a useful gift, try to give that bonus as a fist full of dollars rather than as a printed check. the bonus becomes more tangible and the day you hand out the bonus, everyone's moral skyrockets.
extra points if you can get everyone to roll around in a pile of $20 bills.
Re:Give whatever you feel they deserve. (Score:4, Insightful)
What a double-standard. If a wife buys her husband a set of power tools as a gift, you know you won't hear him complaining. =P
Parent
Re:Give whatever you feel they deserve. (Score:3, Informative)
If it was considered OK to get the husband an iron so that he could iron his own pants/shirts, then yes, it would be a double standard.
Of course if there was someone who made a hobby out of vacuuming, a nice sporty vacuum cleaner would be an appropriate gift.
Re:Give whatever you feel they deserve. (Score:3, Insightful)
*Unless* your wife not only *specifies* a vacuum cleaner as a gift, but a specific model and type.
I'd also include not giving your wife a gift that you really want, but I still remember the funny look she gave me when she opened her Season 1 "South Park" DVD set....
Careful (Score:5, Insightful)
Save some for party (Score:2)
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 [fsf.org]
EFF [eff.org]
Donation forms? (Score:2)
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 ma
Re:Save some for party (Score:3, Funny)
My initial reaction (Score:3, Funny)
Keep it simple (Score:4, Insightful)
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.
Sales sharing (Score:3, Informative)
The more bonuses, the better (Score:5, Interesting)
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.
No gifts (Score:2)
And no, there is no amount of money that is ever "too much".
How do you mean.. (Score:4, Insightful)
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.
huh? (Score:2)
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
a nice one (Score:2)
good for both (Score:3, Insightful)
Spread it out some... (Score:5, Insightful)
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.
yes it is! (Score:5, Insightful)
consider donating part of the profits to charity (Score:2, Interesting)
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 consi
$1500 (Score:2)
The perfect gift! (Score:3, Informative)
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 $1000. Also have some seasonal gourmet foods sent to their home address; Honeybaked Ham [honeybaked.com] gift packs are always fantastically delicious, and Pittman & Davis [pittmandavis.com] oranges and red grapefruit are the largest and sweetest you'll ever see. Remember, it's not all about the employee's reward and morale boost. This is an opportunity to show his family that you care about both him and his family, and the workplace isn't just where Daddy stays late and comes home tired and grumpy.
Also remember to give the cash bonus well in advance of the actual holiday. Not only do you catch the potential celebrators of other religious holidays, but you give them a welcome shot of cash for the gift-shopping season, which is often very stressful for tight budgets.
Whores! Whores, I tell you! (Score:5, Funny)
Lots and lots of whores!
You run a tech company, right?
Just imagine the loyalty they'll feel toward you, once they can honestly tell their Dungeons & Dragons buddies that they finally lost their virginity in real life.
What I'd do... (Score:3, Insightful)
If it was up to me, I'd give them 750$~ 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.
Give em $1 bills (Score:5, Interesting)
Cash is King (Score:3, Insightful)
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."
iPod (Score:3, Interesting)
Seriously, once the cash is gone - it's forgotten. The iPod will be there all year round.
Blatant Plug (Score:2)
Anything, as long as it's communicated (Score:3, Insightful)
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.
Bonuses are good, but be careful... (Score:4, Interesting)
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)
Make their jobs better first. (Score:3, Interesting)
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.
Other ideas (Score:3, Informative)
by Bob Nelson, ISBN 1-56305-339-X is a good resource that might help you determine what to give.
Amazon [amazon.com] link
Regards, Anomaly
Don't. (Score:3, Interesting)
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.
Moo (Score:3, Interesting)
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.
Now you HAVE to give them 1500 (Score:4, Funny)
Re:cash (Score:4, Insightful)
* 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?
Parent
Re:in Holland (Score:3, Informative)
Hmm - it might be the same as things are in Belgium though. Here we get paid a 13 month year, and the 13th month is at the end of November. It's not a bonus, it's part of our salary...
(Actually it's about 13.9 months a year, because we get a similar "holiday pay" in the summer - effectively we get paid double for holiday time, with half of the double pay being paid as if you're working during your holiday, and half in a lump sum