re: Update: Christmas Bonuses

You should definitely tell people (everyone, at the same time, via email or other written format) that bonuses will be smaller this year due to a variety of factors. Emphasize that your business is growing, that you’re not in financial distress, but that the bonus structure and amounts of the past are being re-examined. Thank them for their hard work, mention specific success points (X units sold, Y contracts closed or whatever is appropriate to your business), and throw in a couple of sentences about your excitement for 2019 and what next year will hold.

Telling people informally, one on one, means that some people know before others, leading to a compounding of the possible feelings of unequal treatment already generated by the change in bonuses.

Definitely don’t do this in a group setting just before a Christmas party. Also consider the size/expense of the party: if you dramatically scaled back bonuses and then give a $5K party, someone in that room is thinking “hey, that could have been my bonus”.

Best office Christmas parties in my work career were simple—potluck, plus we adopted kids from the local Angel Tree, and everyone brought the stuff they’d purchased & we wrapped it all up as part of the party. Over a couple years, we went from sponsoring two kids to doing 6-8 because it made people feel good.