Holiday Bonus question

Jims5543 · 12-19-2007, 09:49 AM

I am handing out holiday bonus' Friday and I am wondering what is proper.

I tend to be way too generous and I have received comments from both my accountant and my wife. In the past money was no object and I handed out some really nice bonuses. This year money is tight and I already decided not to take a paycheck this week and probably none next week to offset the hit from handing out bonuses.

I have one Salary and 3 hourly employees. The hourly guy makes VERY good money way above normal scale, but he is 100% dependable, and can run the place in my absence.

I have already assigned amounts but I am curious what others think I would rather not discuss exact amounts as at least one member here knows one of my employees on a personal level.

Rule of thumb?

Weeks Pay? (I had this one year when I was salary and I was sort of insulted because I worked 70 hour weeks (with them billing my 70 hours to clients) and felt they should come through with a tad bit more.)

$50? (I have had my share of cheapskate employers that pulled this on me)

Discuss.

dhoward · dhoward's Garage

Jelly of the Month club membership.

Hetmann · 12-19-2007, 09:58 AM

A bonus should be a way to share the firm's bounty or surplus with those who produced it. If you are taking a hit to give them out, then there seems to be a lack of surplus there. I don't think a bonus is a given.

Hard-Deck · 12-19-2007, 09:58 AM

Can I come work for you when I retire?

I say if you have good employees, give them the amount you can tolerate according to your business profits and inside the tax laws for bonus payments. You're a good man to be generous to those who butter your bread.

Porsche-O-Phile · Porsche-O-Phile's Garage

Got 12% this year. I was stunned, but quite pleased.

It was a good year for the firm.

VincentVega · 12-19-2007, 09:59 AM

It shouldnt be expected, anything is well, a bonus.

id10t · 12-19-2007, 10:00 AM

Hot cocoa sampler box....

Even when I was working for Columbia/HCA healthcare all we got was a $15 gift card to a local supermarket... except the one year the owner of Heavenly Ham (at least the local one) had a big hospital bill, then we all got $20 HH gift cards...

kstar · 12-19-2007, 10:02 AM

Ponies, of course. Everybody loves a pony.

sammyg2 · 12-19-2007, 10:02 AM

Depends on the employee's performance and value to the business.
I figure a decent employee who does his job but not to a level of excellence should get about a 3 or 4% year end bonus.
An exceptional employee who would seriously hurt the company if he left should get closer to 10%.
An employee who barely gets by but does not meet expectations should not get a bonus at all. In fact they shouldn't be employed there.

All bonus's should reflect personal performance, as well as the performance of the company. If the company is losing money, no bonus.

last year my potential bonus range was listed from zero to 10%. I got 12%. I had only been there 9 months but they figured out that I hired in cheap (even though I negotiated other things besides wages, like 4 weeks vacation to start) and I had mentioned that I only worked there because I wanted to keep busy, not because I needed the work or money. They justified the extra bonus money as "compensation compensation". I kid you not.
We don't get our bonus at the end of the year tho, we have to wait until the middle of March.

It'll be interesting to see what if anything I get this time

Moses · 12-19-2007, 10:04 AM

A nice gift with a note would suffice; "It's been a tough year and I wish I could do more..."

bell · bell's Garage

our company does approx 2mil a year and have been open for about 17 years, i've been here about 7 years, other employees have been here about 10 years.
we have 10 employees and it's family owned.
we have never seen a christmas bonus, not even a christmas party, personally i feel the family is pretty selfish and this creates alot of anger around the holidays from most of the employees.....we don't get squat.
plus all the buildings are owned and such so overhead is minimal.

so merry ****** christmas

cashflyer · 12-19-2007, 10:20 AM

My most recent former employer gave $100 gift cards to each employee (19 employees, family owned business). When the union got into the mix, they argued that because the employer had done it for several years consecutively, it was no longer discretionary but rather it is an expected part of the wage package. They filed suit with the NLRB and won.

He gave them their bonuses and then closed the plant for two weeks.

Last year I gave my 1 employee $100 at Christmas.
This year my revenues are waaaaaaaaay down, and he is only getting a card. But in a company this small, he already knows and understands the situation. (I haven't had a paycheck this month either, Jim)

Are you close enough to your employees that they know your revenues are down and that you would be skipping a paycheck to give them their bonus?

Rick Lee · Rick Lee's Garage

Only bonus I've ever gotten was a $50 Amex gift card. At my current job, we get 4% of all revenue once we've reached our goal for 2007. Of course, the very few people who even reach that don't get there before about this week. And obviously, not too many customers are sending in work between now and 12/31. I'm one of the few who's at over 100% of goal, but I don't expect more than about $500, which is almost insulting.

Jims5543 · 12-19-2007, 10:29 AM

They are all aware times are really bad here. I only have 4 employees. 1 of them has been here 5 months, the other (my receptionist) worked for me when I first starter out, was laid off after the hurricanes in 04 and rejoined about 5 months ago.

The other kid has been here for 3 years and is a real go getter, he works hard and is willing to learn way above what he needs, he never misses a day and I consider him an asset.

The last one is my right hand man, been here 5 years, and will put in a 70 hour week if needed without blinking.

By the flavor of this thread, If I disclosed my exact figures some of you would echo my wife and accountant.

Its not their fault business is off, it just is and I do not feel its fair to punish them. The salary guy has a 4 figure bonus coming, the 2 newb's $150 and the go getter kid half way to 4 figures.

They are the reason I run from day to day and I like to show my appreciation for it. My wife thinks I am nuts.

Rick Lee · Rick Lee's Garage

Quote:

Originally Posted by Jim Cesiro

Its not their fault business is off, it just is and I do not feel its fair to punish them.

It's your business, but when business is bad, it should be bad for everyone. Ain't my fault that some customers go out of business, but that loss affects my revenue and thus my commission check. I have very rarely used the words "not my fault" or "not my job" in any sales job. It might as well be my fault because it's my paycheck that feels the sting.

notfarnow · 10:36 AM

The union at our company did away with discretionary bonuses too, and many other forms of performance-based incentives.

Either way, there have been no Christmas bonuses at our company for years. In management, we get performance bonuses at "review" time in January, usually 8-12% if you've been a good boy.

The only time I ever got Christmas bonuses was when I worked for small private companies where the BOSS actually worked with his staff. It was never a performance-related thing... a bonus for everyone.

I think a week's pay is a very generous. I'd LOVE to get that.

I'm confused by some of the posts. Are we mixing performance bonuses with Christmas bonuses?

Hard-Deck · 12-19-2007, 10:35 AM

Quote:

My wife thinks I am nuts.

I don't know your wife, so this comment is not personal in any way.
I've owned several businesses over the years. My wife has always understood that the employees, contractors are who gives her a budget to run the house and extra stuff. She is thankful to them.

mikester · 12-19-2007, 10:38 AM

I have never received a "holiday bonus" that I recall. I feel like I have a pretty good salary.

If the company gave me a $25 gift certificate as a holiday bonus I would say "Thank you" and spend the heck out of it.

Insulted by $500? If that is how you feel then it seems to me you don't "like" your job or your salary itself is not enough. Bonus' are just that and should never, ever be counted upon. Have you guys seen Christmas Vacation (though these days it would probably be called "Holiday" vacation).

Go Chevy.

Burnin' oil · 12-19-2007, 10:40 AM

I have one half time employee. I give her bonuses randomly during the year and the Christmas bonus this year was a little more than six times her weekly pay and I gave her (paid) Christmas week off. I am glad that I can help her out.

Rick Lee · Rick Lee's Garage

I guess we should specify holiday vs. performance bonuses. I think everyone should receive the same amount for holiday bonuses, if the company can afford them at all. For perf. bonuses, I only say I'm insulted by $500 because this job was sold to me as one that paid out "huge" bonuses late in the year, once goal was met. I was told five figure checks were very common. Since I'm in the top 20% of the sales folks and might get $500, I feel a little mislead and I'm sure lots of others do too. I doubt anyone will get anything close to a five figure check, let alone several such checks.