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stout
Arizona Fan
Back in God's Country
Member since Sep 2006
138894 posts

re: Update: Christmas Bonuses
Sign them all up for the Jelly of the Month club


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120
arkiebrian
Arkansas Fan
Midtown
Member since Nov 2006
3681 posts

re: Update: Christmas Bonuses
Where I work the Christmas bonus is a percentage of pay for the year that goes up or down based on company performance. It’s been as high as 29% but was 5% last year. This year I know they are saving 40% in taxes so if they pull that 5 percent crap I’ll be searching for something else.

We also have a Christmas party that has been toned down from previous years (no alcohol). I’m fine with that if the money goes to a better bonus.


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42
bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
10085 posts
 Online 

re: Update: Christmas Bonuses
quote:

Another way to phrase it is, how many folks DEPEND on their bonus for all of their gifts and stuff?

I wouldn't want to know.


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30
RATeamWannabe
Kansas Fan
Baton Rouge
Member since Sep 2009
22911 posts
 Online 

re: Update: Christmas Bonuses
Only checking in to say how much it sucks to not have a bonus because of "no funds" in a public school system.

Carry on you wonderful people who have made far better financial decisions than I


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30
castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
54783 posts

re: Update: Christmas Bonuses
I'd take the hit this year, then roll out clearly defined metrics for bonus payout. Test these against previous years, to get an idea of where the payout would fall. Tweak accordingly.




wasteland
LSU Fan
ya mother
Member since Apr 2011
2695 posts

re: Update: Christmas Bonuses
I'd cancel the party and put those funds toward bonuses. I'd also give as close as possible to last years bonuses because your employees are relying on them. They shouldnt expect to always get extra but you have made it routine.

While giving them out, explain how tough it was and the new metrics youre using to calculate bonus potential going forward.


PearlJam
Auburn Fan
NotBeardEaves
Member since Aug 2014
10118 posts
 Online 

re: Update: Christmas Bonuses
quote:

used earlier of the $5k payout will be maybe $1k this year
in a manufacturing setting, a long time employee that has been getting 5k bonus every year, will absolutely be counting on that bonus. It is very late in the year to spring this on them. I would try to keep the bonus closer in line with what they are expecting and let it be known bonuses for the next year will be tied directly to profits/should not be expected.


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
54783 posts

re: Update: Christmas Bonuses
quote:

I'd cancel the party and put those funds toward bonuses.
I don't agree with this at all, unless he's spending a ridiculous amount for the party we're talking probably less than 100 bucks per person saving.
So in essence, you end up with two disappointments.


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30
dirtsandwich
Alabama Fan
AL
Member since May 2016
1312 posts

re: Update: Christmas Bonuses
quote:

in a manufacturing setting, a long time employee that has been getting 5k bonus every year, will absolutely be counting on that bonus. It is very late in the year to spring this on them. I would try to keep the bonus closer in line with what they are expecting and let it be known bonuses for the next year will be tied directly to profits/should not be expected.

Not my money so it’s easy to spend but I agree with this 100%. You have people who will absolutely be counting on this.


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50
whodatigahbait
LSU Fan
Uptown
Member since Oct 2007
1507 posts

re: Update: Christmas Bonuses
quote:

Good Morning MT-

My family owns a business and in years past we have always provided Christmas Bonuses' for our employees. Typically we assign a dollar figure based on tenure with the company with the highest payout around $5,000. We have done this since we were a much smaller company and now we've just hired our 43rd employee which is approximately 10 more than we had this time last year. In 2017 we gave out over $60k in bonuses and if we were to use the same logic this year that number would be over $70k. We always knew that eventually we wouldn't be able to continue to give out these substantial gifts and I believe that time is now.

We have had a flat year revenue wise and lost money profit wise due to higher than expected COGS. We have always had a slim payroll for our revenue which is why we've had the expansion in labor this year.

Any feedback on the best way to ease the blow to our employees that they're not going to be getting the same bonus that they have expected in the past. Some people will receive the same as last year while other will receive less. The example I used earlier of the $5k payout will be maybe $1k this year. We would love to give the normal bonus this year, but we just can't.

Any advice on how to approach this would be appreciated. My thoughts were to bring everyone together before our Christmas party (which is when we usually give these out) and explain to them that the bonuses will not be as rich as years' past.

Thanks in advance and Happy Holidays.


A few thoughts, based on what you have said and given that there is a long time tradition of this and therefore an expectation.

1) I think if you can find a way to keep people as flat as possible do it. However you need to set the expectation that going forward bonuses are just that and are not guaranteed.

2) If at all possible try to meet with each person on one tell them the situation and ask them what they were expecting. Transparency is the best policy.

3) DO NOT DO THIS IN A GROUP SETTING

4) Try to hammer home that ownership/management is taking the biggest brunt of it.

5) CANCEL THE CHRISTMAS PARTY. I'm not sure I know a single person that wouldn't rather have $$$ in their pocket to spend at their discretion instead of going to a company party. I think it goes a long way to tell people we'd rather pay.


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90
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USA
Member since 2001
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Epic Cajun
New Orleans Pelicans Fan
Lafayette, LA
Member since Feb 2013
16979 posts

re: Update: Christmas Bonuses
quote:

roll out clearly defined metrics for bonus payout

I agree with this.

Our bonus structure is clearly defined and based upon company profitability. We have quarterly meetings where profitability is discussed and we have an idea if we're on track to receive the bonus or not. Bonuses shouldn't be just randomly given regardless of company profitability.


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20
GenesChin
Army Fan
The Promise Land
Member since Feb 2012
34320 posts

re: Update: Christmas Bonuses
quote:

bonuses should be tied to profits


Our company gives out a target profit sharing amount every year. Every quarter, we update guidance on where we are vs target so no one is surprised



Good companies communicate with employees so there are no surprises


LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
12625 posts
 Online 

re: Update: Christmas Bonuses
So headcount is up 30%, revenue is flat, and bonuses in the past were expected and generally paid based on senority.

If you have been doing this forever, it's expected.

Understand that if you dramatically cut or eliminate the bonuses this close to year end, you are going to destroy employee morale and you are going to cause a whole bunch of issues.

Employees aren't stupid. They see there are more of them running around this year, and there isn't more business. So they probably are already nervous as it is. Cut their bonuses by 80%, and you may soon find they aren't so loyal to you anymore. They are going to assume the company is in trouble, and head for the exits.

I would do everything I can to try to keep the bonuses as close to normal as I could.

But more importantly, it's time for an all-hands meeting, where you discuss the growth of the company, future prospects, etc. I would also work on a new bonus structure that isn't tied to a holiday, but instead to performance, and present that to the employees.
This post was edited on 11/29 at 2:57 pm


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60
ConfusedHawgInMO
Arkansas Fan
Member since Apr 2014
1197 posts

re: Update: Christmas Bonuses
You just have to suck it up and pay it this year. It will be considered a total dick move if you cut them now without warning. Sorry but it's true.

Starting as early as possible in 2019. You have to have a heart to heart with those that get the higher bonuses. Share the dilemma with them and tell them you need their help to mentor the younger employees and then you can all work together to grow your business and thus potentially their bonuses. That being said you really need to switch over to performance based bonuses. For instance a bonus based on revenue growth, a bonus for lowering COGS as a % of sales, customer satisfaction, etc.

Read the book The Great Game of Business.


BitBuster
LSU Fan
Lafayette
Member since Dec 2017
514 posts

re: Update: Christmas Bonuses
quote:

hat being said you really need to switch over to performance based bonuses. For instance a bonus based on revenue growth, a bonus for lowering COGS as a % of sales, customer satisfaction, etc.


In this scenario, don't the salesmen basically get all the bonuses?

Personally, I think salary should be the performance indicator and bonuses should be equal across the board.

A $3000 bonus may not mean anything to the director of sales, but to the receptionist it may mean paying off the car note.


birdieman
Alabama Fan
NOLA
Member since Dec 2012
1459 posts

re: Update: Christmas Bonuses
You gotta figure out a way to pay these ppl. If you want to keep them, that is.


BitBuster
LSU Fan
Lafayette
Member since Dec 2017
514 posts

re: Update: Christmas Bonuses
quote:

You gotta figure out a way to pay these ppl. If you want to keep them, that is.


Why not both? Create annual bonuses that everyone gets, and performance bonuses that the special ones get? Use two separate pools of funds. I'm sure the special ones wouldn't mind getting a quarterly bonus check.


dirtsandwich
Alabama Fan
AL
Member since May 2016
1312 posts

re: Update: Christmas Bonuses
quote:

Why not both? Create annual bonuses that everyone gets, and performance bonuses that the special ones get? Use two separate pools of funds. I'm sure the special ones wouldn't mind getting a quarterly bonus check.

I think he’s talking about paying them this year. Two issues in my mind: what to do this year and what to do moving forward. I agree this year needs to be paid (most of it at least). Moving forward, I think he can do whatever he wants for the most part as long as it is communicated before late Nov of next year.
This post was edited on 11/29 at 4:23 pm


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30
Dupont3
LSU Fan
Keithville
Member since Nov 2011
1546 posts

re: Update: Christmas Bonuses
Give out the same bonuses. Scale back company party to pot luck type deal. Mention in January about how it’s becoming to expansive and the company really lost money. Mention there will still be bonuses but it will be based on company performance and not to expect it at the end of the year. It should be looked at like what it is. A bonus.


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20
The Spleen
Alabama Fan
Member since Dec 2010
22690 posts

re: Update: Christmas Bonuses
quote:

You just have to suck it up and pay it this year. It will be considered a total dick move if you cut them now without warning. Sorry but it's true.



Yep. It's too late in the game to tell them Christmas bonuses will be scaled back this year.

My wife's company scaled them back a few years ago and just decided not to tell the employees. Lot of pissed off people when they opened the checks, and since my wife was in management(not involved in bonus decision) she caught hell over it. That Christmas SUCKED in the Spleen home having to talk her down every night after dealing with pissed, unmotivated employees all day.


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