The holidays mean bonuses — or do they? Many of your employees would agree, so if you’re reasonably capable, you should deliver.
This year, per our “Holiday Bonus and Hiring Survey,” 75 percent of companies plan to give holiday bonuses, with an average bonus of $1,081. What about your company? Are you providing bonuses? If so, how much?
Now that we’ve probably made you question your company’s holiday bonus plans, let’s explore why it’s critical for you to bestow these gracious gifts upon your employees.
Shockingly (or not so shockingly), less money = more stress. Combine that with the fact that debt is a primary cause of holiday stress and it’s the perfect storm. And yes, even money-minded accounting and finance pros can spend a little too much on gifts.
You can’t control that, but you can control your employees’ holiday stress levels, at least to an extent. Imagine what an extra $1,081 would do for their financial funds as they purchase gift after gift after…you get the point.
Believe it or not, 70 percent of employees don’t feel appreciated by their employers. So how do you ensure that less—hopefully far less—than 70 percent of your employees feel unappreciated? Go ahead, you can answer. It’s holiday bonuses!
Yes, there are plenty of other ways (which you should also utilize) to show appreciation, including personal thanks, public recognition, time off, etc., but a competitive holiday bonus is about as overt of an “I appreciate you” as you can offer.
And remember, appreciation is often reciprocal. For example, you express your appreciation through a bonus, and in turn, your great employees recognize that appreciation by working harder and sticking around. What better way to build a relationship and ramp up retention?
The cost of replacing a professional employee like a financial advisor, staff accountant or payroll specialist is all over the map. There are many factors involved, such as the skills unique to the position, the amount of available talent, and the amount of competition. Regardless of where it falls on that spectrum, though, it’s expensive to lose an employee. It will cost anywhere from 20 to over 50 percent of that person’s salary, especially when you factor in lost productivity.
While there are numerous ways to focus on retention, including improving company culture, holiday bonuses (which reduce stress and express appreciation in the process) certainly contribute to the cause.
Whether partially based on performance or company profits (something your accounting and finance pros may be privy to), or if they’re purely for the holidays, bonuses help put the “Happy” in “Happy Holidays” and help keep your top talent on board. Are you confident in your company’s holiday bonus plans?
For more holiday bonus numbers—and additional insights—check out our infographic.