Christmas Holiday Bonuses

Businesses need to think carefully about the bonus they will give their workers as it sets the stage for what employees will expect from the business in 2024.

Different industries have differing ideas on what constitutes a holiday bonus. Holiday bonuses are a long-time tradition for large industries. These businesses usually have a set precedent on what to give their employees.

Small businesses, however, often have to use personal discretion and set their own precedent for holiday extras. Business owners could ask around at similar companies to understand what constitutes a holiday bonus to them.

They also need to consider the role the holiday bonus will play in their year-long pay scheme. Is it a substitute for a year-end bonus? Or is it a token of holiday spirit? If businesses already pay a year-end bonus, the holiday bonus becomes more of a gift of appreciation.

Businesses should look at the company’s performance throughout the year and use that to indicate how much to spend. Be careful of being overly generous, as it may not be possible to maintain too high of a standard if the company does not perform as well in the following year.

A gift can be as meaningful as money, especially when combined with a thank you note. It can also serve as a cost-effective approach to holiday bonuses for smaller businesses. Common employee gifts for holiday bonuses may include shopping vouchers, employee reward baskets, food, or tickets for sporting events or theme parks.

The key to holiday bonuses is structuring them to be affordable yet considerate. Businesses should focus on showing appreciation to their staff, not on how much to spend or what gift to buy.

Reasons for holiday bonuses:

Boost Motivation:
A holiday bonus can help raise your general morale as you know you’re getting rewarded for your hard work at the end of the year. This can increase job satisfaction and improve the overall work environment. Employees who receive holiday bonuses may be more motivated to meet deadlines in a timely manner and help the company reach its financial goals.

Promotes employee well being:
A monetary bonus or even a gift can help reduce stress during the period. When you know that you can expect a holiday bonus at the end of the year, it may offset the extra costs associated with the holiday season.

Increase Productivity and Engagement:
The company uses holiday bonuses as a means of incentivisation. It gives you something to look forward to at the end of the year, which leads to increased engagement and productivity.

Demonstrates care for employees:
Holiday bonuses help show that a company appreciates the efforts of its employees. When you are recognized at work, you’re generally more inclined to put in extra hours, perform additional duties, and maximise your efforts.

Helps to meet financial goals;
If the company meets its financial goals, your awareness of increasing holiday bonuses makes you more inclined to work harder and more efficiently. The promise of these holiday bonuses can facilitate a more dynamic work environment where employees help the company meet or exceed its set financial goals.