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Message
re: Update: Christmas Bonuses
Posted on 11/29/18 at 5:25 pm to CHiPs25
Posted on 11/29/18 at 5:25 pm to CHiPs25
Our company gives a performance bonus to all non commission EEs that is based on net income after taxes. It’s tied to % of budget goal for the year achieved at year end. If you hit x% of net income after tax budget projection, everyone gets Y. Better the NIAT, better the bonus. Company posts progress each month throughout the year so we know how we are doing. Works really well, everyone knows every little thing they do affects that number so people don’t waste money
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Posted on 11/29/18 at 9:41 pm to castorinho
quote:
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.
This. At least for your employees of two years or more.
And better yet. Come up with the metric now (if you can) to show them “this is what your bonus would be under the new metric, but we are committed to rewarding you as we have been this year, even though we didn’t meet our goals”. Or something along those lines.
Not only will this set the record straight for next year, but it earns you some loyalty and possibly even some motivation into next year.
quote:
We've had 2-3 very recent and the rest scattered through the year. In the past, 1st year employees received a small bonus ($500) so scaling back on the new employees wouldn't free up too much money.
You say it won’t make a difference, but if the newbies don’t get a bonus. They’re new. The newer ones didn’t get much last year so you don’t need to raise them, and can possibly not give them any if they only for a few bucks the year prior.
Take care of your people that have stuck with you.
Posted on 11/29/18 at 10:24 pm to CHiPs25
I guarantee you they would prefer more bonus over a Christmas party
Posted on 11/30/18 at 8:28 am to Mr.Perfect
quote:
I guarantee you they would prefer more bonus over a Christmas party
10000000%
Posted on 11/30/18 at 9:40 am to BitBuster
quote:
In this scenario, don't the salesmen basically get all the bonuses?
No you have to get everyone engaged and involved. However you do need to build an incentive plan that actually does incent everyone. Salesman can't help lower COGS. Salesman can't reduce waste on the production side which could lead to an increase in net revenue. Things like that.
Posted on 12/1/18 at 4:30 am to whodatigahbait
quote:
quote:
I guarantee you they would prefer more bonus over a Christmas party
10000000%
Absolutely. My current company throws a big extravagant Christmas party every year. Pretty much every other employee I talk to about it says they'd rather a Christmas bonus.
Posted on 12/1/18 at 5:32 am to baseballmind1212
If they have been getting these for at least a couple of years, they are going to expect these bonuses.
It’s too late now, but you really need to share this news before now and remind people that bonuses are just that and aren’t guaranteed. You can do this by sharing more of the sales or financial information in monthly or quarterly meetings so they know where things stand might stand at year end.
It’s too late now, but you really need to share this news before now and remind people that bonuses are just that and aren’t guaranteed. You can do this by sharing more of the sales or financial information in monthly or quarterly meetings so they know where things stand might stand at year end.
Posted on 12/1/18 at 7:19 am to baseballmind1212
quote:I have seen this several times in this thread, but how much of a extra bonus do you people think they'd get if the Christmas party was split evenly among employees? Not even 100 bucks.
I talk to about it says they'd rather a Christmas bonus.
Christmas party+Reduced bonus isn't any worse than reduced bonus plus a hundred bucks.
Posted on 12/1/18 at 7:37 am to CHiPs25
It is a bonus.
It should be treated as such.
You don’t owe any explanation to anyone.
It should be treated as such.
You don’t owe any explanation to anyone.
Posted on 12/1/18 at 7:49 am to CHiPs25
quote:
Any advice on how to approach this would be appreciated.
My company used to give out bonuses, not anymore. Now, the way it was handled was to send out an email stating that "revenues were down, needing to look for ways to cut costs, etc, and year end bonuses were one of the items being slashed".
If you have meetings with all employees, I would just tell everyone the state of things, and it sounds like you are still giving out bonuses, not increasing the amounts.
A bonus is a bonus, if employees expect it, that's on them honestly. But, because you have given them out regularly, I would let them know as early as possible that they will not grow like in previous years, so they can plan accordingly.
Posted on 12/1/18 at 7:51 am to Mr.Perfect
quote:
I guarantee you they would prefer more bonus over a Christmas party
Our Christmas party is required attendance and we also spent $300K on Christmas lights and a 28' tree at one of our locations which no one goes to, but we still have no money for bonuses. Everyone is angry.
I'm just too close to retirement to leave.
Posted on 12/1/18 at 9:57 am to CHiPs25
quote:
In a corporate setting, they would just give out a bonus and not tell anyone why they lost some of the bonus from the year before.
Quite the opposite. Larger corporations tend to follow a bonus formula which is based on performance targets. Whether individually or in group settings, it's usually communicated where the fiscal results stand vs. the targets and what the bonus will be.
The key is communication. And personally, as a business owner, I would establish some sort of formula based plan to determine bonuses, rather than just picking a dollar figure out of the air.
Posted on 12/1/18 at 8:34 pm to CHiPs25
Our company is similar in growth. I would recommend switching to a percentage model, but also if end of year bonuses are part of the comp package, you need to be open and direct that it is no longer sustainable and stop advertising it as a benefit
This post was edited on 12/1/18 at 8:51 pm
Posted on 12/1/18 at 8:51 pm to CHiPs25
I can tell you that from past experience that every year after I gave big bonuses out, the staff were always wanting more and more, even when we made less. We've been through some tough years but entitlement has made employees talk like the corporation is killing it and doesn't want to share. Even when I've showed some key people the P/L's, a couple of them said that was fake numbers. It hit the fan one year and only gave to departments that actually made money for the company. I was shocked to see how people expect it even if we didn't have the money to give. I've found ungratefulness in full bloom. Business owners really do want to give those bonuses bc it helps the company.
Posted on 12/1/18 at 8:52 pm to CHiPs25
Jelly of the Month?
Posted on 12/1/18 at 9:05 pm to CHiPs25
I see a lot of the employees shouldn't expect bonus.
I get a bonus every year it is based half on my performance and half on company performance. I expect to get a bonus I work 50-60 hours a week and a performer.
I would rather straight salary, but this is how they want to compensate. We had really tough years and I got personal part.
When a recruiter reaches out and I think about a new position I think about that bonus when we talk total comp. I assume that is why I get it they want me thinking what I am leaving on table if I leave.
You have setup expectation of bonus and you waited too late to pull that rug out in my opinion.
You can shite dick your low performers but anyone you want you better take care of.
I get a bonus every year it is based half on my performance and half on company performance. I expect to get a bonus I work 50-60 hours a week and a performer.
I would rather straight salary, but this is how they want to compensate. We had really tough years and I got personal part.
When a recruiter reaches out and I think about a new position I think about that bonus when we talk total comp. I assume that is why I get it they want me thinking what I am leaving on table if I leave.
You have setup expectation of bonus and you waited too late to pull that rug out in my opinion.
You can shite dick your low performers but anyone you want you better take care of.
This post was edited on 12/1/18 at 9:07 pm
Posted on 12/1/18 at 9:20 pm to thelawnwranglers
Bonus should not be something you think you "gave"? When you pay a vendor is it a gift? I am not judging as a small company might literally be a gift that is given to even the undeserving. I am suggesting you change this culture.
This small business "gift" idea makes people not care when it is a bad year. You own the business and still rich in their eyes so if it is a "gift" you can give even if it is a shite year.
It should be part of the compensation formula to encourage exceptional work.
Formula driven is the way corporate does it. I know what my formula is and get it if we are having a bad year. Also it isn't at Christmas it is at our year end March 31st.
It isn't a gift it is a part of my.compensation and something used to induce me to work at my job and keep me .
This small business "gift" idea makes people not care when it is a bad year. You own the business and still rich in their eyes so if it is a "gift" you can give even if it is a shite year.
It should be part of the compensation formula to encourage exceptional work.
Formula driven is the way corporate does it. I know what my formula is and get it if we are having a bad year. Also it isn't at Christmas it is at our year end March 31st.
It isn't a gift it is a part of my.compensation and something used to induce me to work at my job and keep me .
This post was edited on 12/1/18 at 9:22 pm
Posted on 12/1/18 at 9:25 pm to castorinho
quote:
I have seen this several times in this thread, but how much of a extra bonus do you people think they'd get if the Christmas party was split evenly among employees? Not even 100 bucks.
Christmas party+Reduced bonus isn't any worse than reduced bonus plus a hundred bucks.
It isn't the $100 bucks. If times are tight quit spending on stupid shite not my pay. Not paying bonus is a company failure. Stop wasting money and protect my pay executives.
Posted on 12/2/18 at 10:33 am to thelawnwranglers
Most corporate jobs will have a multiplier that gets applied based on performance across a number of metrics specific to each wage group. Each quarter, the company typically provides a POV on how performance is tracking and how that multiplier is impacted.
With that said, I live as though a my bonus is not going to happen and then treat it as a nice “surprise” when it hits. I do know that a lot of people depend on it so it’s clearly important to be transparent about what they can expect.
With that said, I live as though a my bonus is not going to happen and then treat it as a nice “surprise” when it hits. I do know that a lot of people depend on it so it’s clearly important to be transparent about what they can expect.
Posted on 12/2/18 at 10:39 am to CHiPs25
Most family owned businesses give a weeks salary as a bonus. I think thats fair.
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