04-12-2007
Reward staff at Christmas for a productive year ahead
by Karen Baldwin for Simply Business
Despite the increasingly commercial times that we live in, the spirit of Christmas still should be about the importance of sharing and this is just as true in business as it is in life.
Most employers are keen to celebrate Christmas with their staff in some way and reward them for their hard work during the year, either by giving a financial bonus or gift, or holding an event to mark the festive season.
However, small businesses may find it difficult to reward staff in these more traditional ways due to a lack of funds.
Give it a bit of thought, though, and you’ll find plenty of other ways to share the Christmas spirit with your staff this year, which they may appreciate just as much as a cash bonus.
If the size of your workforce is quite small, you may want to provide a personalised form of Christmas gift. The owner of a small business is likely to have far more of an insight into the personal life and motivators of each of their staff and can tailor a gift accordingly.
For example, for an employee with children you may choose to pay for a family weekend trip away. For a young employee who has moved out of home for the first time, it may be a voucher for a groovy home wares store.
For the young thrill seeker it may be a tandem sky dive, for the wine connoisseur it might be a dozen quality wines. Think about the employee and what is important in their life and have your gift reflect this.
The gesture will show that you know something about that person outside of the workplace – that you have been listening to those conversations at the water cooler on a Monday morning – and are interested in them as a person, not just an employee. It’s a gesture that may well create a great deal more goodwill than a cheque ever could.
If your team has put in extra hours in recent weeks to meet end of year deadlines or deal with the Christmas rush, a welcome treat may be an extra day or two of paid holiday leave.
If the budget is a bit tight this year, explore opportunities for the purchase of gift cards or vouchers (many retailers offer discounts for bulk purchases) or look at hosting a low-key party with some quality prizes or hold a casual dinner and give a small, quirky gift.
However, for those small business owners who believe that giving a Christmas bonus is an important part of the staff culture, there are some points to consider.
First and foremost, a Christmas bonus should be provided as much in the spirit of giving as a way of acknowledging an individual’s contribution to the company over the year. However, Christmas isn’t necessarily the right time to be judging staff on their level of performance - that is best left to performance reviews at other times of the year and for end of financial year bonuses.
Half of small businesses are breaking the law
Get employer's liability cover now for a safer 2008
Therefore the amount given as a Christmas bonus should be consistent across the organisation. While you would probably prefer that staff didn’t discuss and compare their remuneration at the pub on Friday night, there is a good chance that they will.
You don’t want to create friction between your staff members or build resentment towards the company in employees who feel slighted by having received a lesser amount than their colleagues, so a general rule of thumb is that the bonus should equate to about one week’s salary.
Be mindful of the fact that if you start giving Christmas bonuses in the form of lump sums of cash, you may well be creating an expectation in future years.
While the business may have performed well this year and you are keen to share that financial success with your team, what happens next year when sales aren’t as strong for the year, there isn’t nearly as much money in the coffers and you have to greatly reduce the amount you give – or don’t give any at all?
You may find that your generous offer this year could backfire on you if staff expect to receive at least the same amount every year. They may become resentful if their expectations aren’t met in future years, either because the bonus is discontinued or the amount is significantly less.
Variety is the spice of life and making the most of the other options available can be a better way to manage staff expectations, even if the budget isn’t so much of a consideration. For example, draw up a list of possible gift choices and select a different option every year – a Christmas hamper, gift vouchers, wine – so that everyone becomes comfortable with the concept of receiving something different every year that isn’t monetary.
As with family and friends, it is the thought that counts when celebrating Christmas with your staff. If the budget can’t stretch to a Christmas bonus – or if you are uncomfortable with this type of reward – there are many other ways to celebrate the spirit of the festive season.
Don’t forget, the quieter period over Christmas is the ideal time to sort out your business insurance for 2008. With Simply Business you can get renewal quotes now and set a future start date for your cover – our UK call centre staff will be available to give you a hand.
