THE EMPLOYER’S GUIDE TO HOLIDAYS & BONUSES
How to be thoughtful and do right at the end of the year
CALCULATING A BONUS
An average year-end bonus is usually one to two weeks pay, although you can of course choose to give more. Think of the bonus as an expression of how much you value the person you employ, as well as an opportunity to tell them, whether face to face or in a note! Give generously within what you can afford; if a cash bonus isn’t possible, look for an alternative gesture of appreciation such as extra paid time off. It's a good idea to let them know to expect a bonus so they can take it into consideration when making their own holiday plans.
IS IT TIME FOR A RAISE?
If your employee has taken on more responsibilities over the past year, an increase in wages is an appropriate way to compensate her for stepping up. The end of the year is a good time to do this if you don’t yet have periodic check-ins or annual reviews. Even if the job description hasn’t changed, make sure you are providing an annual cost-of-living raise.
COMMUNICATE YOUR PLANS
Communicate any holiday-related changes in your schedule as early as possible. Perhaps you will need extra help, whether it’s an attendant to travel with you or a holiday party, or extra childcare or cleaning. Or perhaps you are going out of town and will not need support. If you are reducing regular work hours, pay them for the time.
UNDERSTAND THEIR PLANS
Your employee is also looking forward to their own holiday traditions, so make sure to give and think as generously as possible. Remember the best practice: two weeks vacation at minimum, with one of the weeks at the time of her choosing. Because this year has been challenging for so many of us, consider whether your employee might need extra time off between now and the end of January.
GIFTS
Not required but always appreciated! Note: a thoughtful gift is not the same as a bonus. But giving always feels good and will provide you with a great opportunity to communicate what you value about their work over the past year.
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