One of our favourite times of the years is Christmas! And for some employees this means Christmas bonus time! A Christmas bonus is a one off annual bonus given to employees during the festive period…
A Christmas bonus can help improve staff morale giving employees a little extra to spend during the expensive festive period. It may help attract new talent and help reduce your staff turnover. So if you’re thinking of rewarding your staff this Christmas what are your options;
- A fixed amount – the same amount is given to all employees rather than based on salary or performance. It’s a great option to encourage camaraderie between your employees. Be careful as most employees will expect at least the same if not more next year.
- A percentage of salary – a set percentage ensures that despite receiving different amounts employees feel they have been treated fairly in comparison to their co-workers having all received the same percentage of their salary.
- A performance based bonus – here the amount paid is linked to employee performance usually throughout the year.
- A profit share – a proportion of the companies profits is split evenly across the employees. As well as keeping things equal it also ensures employees feel like a stakeholder in the company’s success. It can also mean that employees are more understanding if the monetary amount is less than previous years (as long as you have communicated clearly how the bonus is calculated).
- A gift – a gift can often have more impact than the same monetary value given as a bonus especially when smaller amounts. Remembering that minor gifts under £50 are tax exempt this is a great option for Employers with a limited budget for Christmas bonus.