In this video from Blue Collar Nerd Richard Kohberger, he chats with Chris Hunter about how to structure holiday bonuses in a fair and sustainable way:
Here are 6 key takeaways from the video:
- Have a plan and share it with everyone so that everyone understands where the bonuses come from, how they contribute to it, and how much to expect.
- Structure the holiday bonuses in a way that motivates employees to perform for the company. As an example, in the video, Chris explains that he set aside 1% of monthly revenue each month for bonuses if they hit their monthly revenue goal as a company.
- Keep company-wide bonuses (like the holiday bonus) separate from individual bonuses, which are tied to individual performance.
- Make sure everyone in the company understands how the holiday bonuses are calculated so that if/when bonuses are lower from the previous year, employees don't perceive it as the ownership being stingy.
- Also include a pre-defined date of when to expect the bonuses to be delivered, ideally early enough that employees can use it for Christmas shopping.
- Don't fund the company holiday party with the money set aside for employee holiday bonuses.
Watch the whole video above to hear lots of great stories and anecdotes from Chris, so you don't make the same mistakes he did when it comes to calculating your holiday bonus and treating your employees to a holiday party.
And if you like the video, subscribe to Richard's YouTube channel, Blue Collar Nerd.