Christmas Bonuses? 320
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?"
Partials (Score:5, Insightful)
I think that $500/person would be quite acceptable...
Re:Partials (Score:5, Insightful)
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.
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:2)
Re:It is Christmas, give them what they REALLY wan (Score:4, Insightful)
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.
What my boss gave us last christmas (Score:3, Interesting)
Re:Partials (Score:2)
Re:Partials (Score:2)
Re:Partials (Score:2)
has to be said... (Score:5, Funny)
Re:has to be said... (Score:2)
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!
Re:Good for you! (Score:2, Insightful)
I work for an insurance company. For the past three years, the big boss has been telling us about all these different client contracts that we've been getting, and we're making bigger and bigger profits all the time. In the three years I've been here, this is what I've gotten:
1st Christmas: $50, while everyone else got $100 because I hadn't been there for the minimum 3 months.
2nd Christmas: Two movie passes
3rd Christmas: The boss walked around handing out cookies. One
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:2)
I'm dubious. Suppose she normally does all the vacuuming and you give her one of those robotic vacuum things (well, maybe in a couple of years when they're smarter). I mean, hell, if *I* was vacuuming, I'd *damn* well appreciate having a significant amount of labor removed from my life.
Disclaimer: IANAMM (I Am Not A Married Man)
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
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)
Re:a nice one (Score:2)
Pretty nifty.
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.
In the sports world... (Score:2)
Now that a third sports team has moved to Detroit, I have the pleasure of working for them too. They do a great many things for company morale, like having a "social co
yes it is! (Score:5, Insightful)
Re:yes it is! (Score:2)
Re:yes it is! (Score:2)
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.
IIRC, any "gift" over $25 in value, whether cash or goods, is considered by the IRS to be taxable compensation. At least my employer (IBM) reports (and withholds for) any such gifts or prizes, and IBM is very careful about following IRS regulations exactly.
A few years ago a bunch of us got nice stone-washed denim shirts with the IBM Global Services logo on them at a company outing. Everyone li
Re:yes it is! (Score:2)
Makes sense. If you're big enough, like IBM, to be constantly scrutinized, however, be wary of giving "non-gifts" that could be interpreted as gifts regardless of how you tapdance around the question. For example, you could try to say "that shirt we gave you belongs to the company and you'll have to give it back", but, obviously, IBM is not going to take back worn clothing and give it to another employee.
Small companies can almost certainly get away with a lot more in this respect, but they should be ca
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.
Re:What I'd do... (Score:2)
Re:What I'd do... (Score:2)
Why? Everything is relative. I was the IT staffer charged with printing out the list of who was getting what and saw that there were no talent, no college degree, not working on the Y2K-keep-the-company alive, ass-clowns whose bonuses were twice the size of mine (three women in particular
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)
in Holland (Score:2)
Yhey might do more, but that seems pretty standard there.
CJC
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
Re:in Holland (Score:2)
And with 13 smaller checks instead of 12 it so works out that the Taxman gets more of your cash. So this 13th check thing is crap because it reduces your yearly income with about 300 Euros as well as giving the idiots in charge an opportunity for blackmail.
The irritating thing is that they forced me to change my contract, it was not always like th
I'm not the accountant, but... (Score:2)
Paid days off (Score:2)
If you can afford $1500 each, it looks like a week off with full pay is a nice way to say thanks.
Geomag (Score:2)
If you have got enough (Score:2)
Or prehaps a company outing
Rus
Gifts are good -- check with your employees! (Score:2)
How big is your company? I've done something similar in a company with 6 employees; small enough for me to know what kind of presents the people liked. Ended up giving different gifts of the same value depending on what they liked:
Gift voucher for a travel shop
Gift voucher for computer hardware
Gift voucher for a new bicycle
If you don
My suggestion (Score:2)
Our place (Score:2)
If your engineers have been pulling long hours, you may want to boost that to reflect that they're working above and beyond. Better to make the latter kind of bonus contingent on release dates though, so it's obvious that it's targetted at completing work to time and quality, rather than just an Xmas thing.
Don't suck too much cash out of the company though. Employees would rather have less bonus and keep their jobs, than get high bon
holiday bonus (Score:2)
If most of your employees have major obligations (e.g.: are married with small kids, are divorced with alimony payments, etc.) then just giving them money is likely to end up paying for diapers, toys, etc. -- nothing for them specifically. Consider a gift that they would appreciate and the balance as
Only place.. (Score:2)
And they held killer Christmas parties. Everyone dressed to the 9s, free food, two free drinks (and then its a cash bar). A separate party for the kids with a visit from Santa and presents. Hell, the 1st year I worked there (actually, it was my 3rd day) they had the Christmas party in Houston. They
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.
Watch Out for Tax brackets (Score:2)
Personally I think the Gift CardAmex Card + Party is a great idea!
Re:Watch Out for Tax brackets (Score:2)
This is a common urban myth.
Higher tax brackets only affect the portion of your income that is above the threshhold. You cannot end up 'losing money' by getting more money. Rule of thumb: More money is always a good thing.
Watch the precedent... (Score:2)
Give everyone a good frame of reference so they know what to expect. The last thing you want to do is wind up having people *rely* on the bonus and get disappointed with the Jelly of the Month [imdb.com] (
$500 (Score:2)
Christmas Bonuses (Score:2, Informative)
I've received and also allocated bonuses that were:
1) a percentage of my salary
2) a percentage of a pool allocated to my department
3) an extra paycheck
for percentages, a 5-10% of the monthly salary is was not unusual.
Money is much more useful then other gifts.
Thank you for being kind to your employees.
Give only what you think you can give next year (Score:2)
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)
heh. I thought $1500 was kind of skimpy. (Score:2, Informative)
Keep it consistant... (Score:2)
As an alternative, consider giving out a few extra days off or some other non-trivial perk. That will usually be appreciated.
The reason for this is that if you give, say, $2,000 this year and next year you give $1,000 because business took a dip peo
My worst bonus... (Score:2)
'You won't survive on brains alone' by Scott Adams. Ironic, and redundant because I already had it.
Small/No bonus (Score:2)
But if you are _just_ becomming profitable, I think it would be better to make sure you'll stick around till next year.
Just me, but keeping my job is a better bonus then a few hundred bucks.
Also people start to expect them (National Lampoons Christmas Vacation) and that can cause no end of trouble.
In any case keep it small, and give them a larger raise when that time comes around. $20/week more then they were expecting.
Don't forget the 401(k) (Score:2)
[1] If you don't, why not? Mutual companies do offer very simple 401(k) plans with low administration fees, and you could just offer a few index funds.
Good xmas bonuses, bad xmas bonuses. (Score:2, Informative)
turkey (Score:2)
today, having a JOB is a bonus enough, I think. so many of us are out of work, taking a severe paycut or just contracting here and there to make ends meet. you are lucky you HAVE a job and can GIVE a bonus.
it doesn't have to be b
Long Ago And Far Away (Score:2)
I worked where Christmas bonuses were distributed.
Then, they were typically about a month's salary, maybe a little less.
Obviously, YMMV.
But definitely go with cash distributions.
Keep it secret until the end for maximum impact.
More than a few folks get themselves into financial jams around Christmas, your bonus distribution will help keep them cheery.
Kudoes for being a good boss.
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.
Give them the bonus; they'll love you for it. (Score:2)
I haven't been lucky enough to work for such an organization, and hearing about the bonuses they award always depresses me. I don't begrudge them their good fortune, and I congradu
500 is not enough.... (Score:2)
A bonus? (Score:2)
Not too much! (Score:2, Insightful)
By the way, are you hiring?
No Bonus (Score:2, Redundant)
However, if you setup a descretionary fund, then the employee can spend the full $1500 ( on a laptop, free road runner, free home telephone service, better health insurance, child care, or whatever else can be conside
No Christmas bonus, BUT ... (Score:2)
Last year, my bonus was $9200. I suspect it will be higher this coming year (We're having an even better year!)
And no, we're not a repo company.
It all depends (Score:2)
$500 is nearly my entire rent payment (in my 1 bedroom apartment). However, in NY City, $500 won
Lawyers... (Score:2)
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?
Re:cash (Score:2)
Re:What Do They Want? (Score:2, Funny)
Re:As an employee... (Score:2)