Naperville Business Attorney on Employee Holiday Bonuses

bonus, Naperville business lawyerIf you are a business owner, you may be considering giving your employees a holiday bonus or gift of some kind. It can be overwhelming to try to find the perfect way to show your employees appreciation for their hard work. Although cash bonuses are often considered the best holiday perk, many businesses cannot afford the expense of giving every employee a holiday cash bonus. Fortunately, there are ways to express your gratitude to employees without breaking the bank. If you have decided that you wish to motivate and reward your employees with a special holiday gift this season, consider the following alternatives to traditional cash bonuses.

Cash Not as Motivating as Other Rewards, Studies Suggest

If you were to survey your employees about what their ideal holiday gift from the business would be, you would probably get “money” as a frequent response. Although everyone could use a little more cash during the holiday season, handing out cash bonuses is not always feasible. Furthermore, cash bonuses are often not an effective tool for motivating employees. In fact, studies show that giving employees extra cash often does not result in better employee morale or job performance.

Employees Often Appreciate Gratitude More than Money

Paradoxically, non-monetary rewards have been shown to have a more positive and longer-lasting influence on employee satisfaction. If possible, giving employees an extra day or half-day off during the holiday season can be a welcome relief for holiday-frazzled employees.

Of course, not all businesses can afford to close or reduce the number of employees working during the busy holiday season. If you find yourself unable to afford holiday bonuses or gifts for your employees this year, do not feel guilty. Research shows that one of the best gifts you can give to your employees is sincere praise and gratitude for their work. In one recent study, 83 percent of employees surveyed said recognition for work contributions was more rewarding than gifts. Many individuals feel undervalued at their job. You may be surprised what a heartfelt note of thanks really means to your employees.

Contact a Naperville Business Lawyer

For comprehensive legal advice from an accomplished DuPage County business law attorney, contact The Gierach Law Firm today. We assist clients with starting a business, buying or selling a business, business litigation, succession planning, due diligence review of business contracts, and more. Call us at 630-756-1160 to schedule a consultation.

 

Sources:

Entrepreneur

Forbes

Psychology Today