Christmas trees have been put up in retail malls, railway stations have lights up, and advent calendars are back on sale — whether we like it or not, it's beginning to look a lot like Christmas! And although it may be a bit early, it's really a good reminder of what has to be accomplished before the end of 2021 – including Christmas presents and bonus ideas for employers.
Giving incentives or presents to your staff is a popular way to share happiness and gratitude during the Christmas season.
Employee financial burdens might be reduced with a Christmas bonus during this hectic season. Not everything has to be monetary; don't forget about personalized thank you cards, celebration parties, group activities, corporate merchandise, time off, and more when it comes to expressing your gratitude.
If you want to give your workers a Christmas present, you should be aware of the potential consequences – both for you as the company and for the employees.
What Is a Bonus for Employees?
Employee bonuses are monetary compensation offered by a corporation to an employee for meeting certain objectives. These are often flexible and might be dependent on the employee's performance, the success of the firm, or a mix of the two.
Is There a Difference Between a Bonus and an Incentive?
An employee incentive would be anything provided to motivate a worker to achieve a certain objective. This is not completely the same as a bonus since it is generally a cash payout of a defined amount.
Although the terms 'employee bonus' and 'incentive' are often used interchangeably, they are not synonymous. Employee incentives are often used to sway future behavior. Bonuses may be utilized in the same manner, but bonuses are also used to recognize prior excellent performance.
Bonuses might be non-discretionary or discretionary in the end.
What Is the Distinction Between a Non-Discretionary or Discretionary Bonus?
Discretionary bonuses are paid at the employer's own discretion. This implies that no one can demand an employee to produce one. There is no legal duty for an employer to deliver a bonus, workers cannot anticipate a certain amount or payment date, and non-discretionary incentives are often not advertised in advance.
Hence, if an employee's bonus is non-discretionary, it's like receiving a card from their grandmother and receiving £50 instead of the normal £5 for their birthday – bonus!
A discretionary bonus is the polar opposite of a non-discretionary bonus. The company specifies what an employee must do to satisfy the bonus requirements in advance, and the employee receives the bonus if they meet the criterion. That's all there is to it.
Consider it similar to purchasing a Kinder Egg Surprise. The employee is aware that there will be a present inside – this is not a surprise to them. However, based on the terms of the contract, the employer may change the type of toy.
Should Businesses Have a Bonus Plan for Your Employees?
Employee incentives may be really effective when it comes to motivating staff; therefore, yes, businesses should have a bonus program or plan in place. Bonus plans are useful for improving corporate performance, focusing staff on attaining important goals, and increasing motivation by tying their work to a specified outcome (pay).
Bonuses, such as a Christmas bonus, may also be designed to match workers' interests with those of shareholders. They may assist in encouraging or supporting organizational change and rewarding staff when business is good - all without increasing the overall yearly salary expense.
Bonus schemes come in a broad variety of shapes and sizes, and they may be dependent on a wide range of goals, groupings, or targets. The CIPD, for example, includes a number of schemes, including:
- Based on business outcomes
What Is the Definition of a Christmas Bonus?
A Christmas bonus is an incentive given to workers during the holidays. Employees may anticipate a Christmas bonus, but employers are not necessarily required to deliver one.
There are various situations where a Christmas bonus is required to be paid. These are the following:
When it's stated explicitly in the employment contract
Whenever a Holiday bonus is inferred by tradition or practice
When conduct (such as delivering a Christmas bonus annually) is consistent, automatically received, long-standing, anticipated, and well-known, it becomes an implicit provision in an employee's contract.
What Are the Chances of Getting a Christmas Bonus?
Despite the fact that "a remarkable 47 percent of workers say they'd rather get an incentive than a Christmas party," according to a report by Hawk Incentives, Christmas bonuses are fast becoming a relic of the past.
According to their findings, 33% of workers haven't ever received a Christmas bonus from their company, and seven out of ten employees fear they are on the way out.
Is It Required by Law to Provide Christmas Bonuses?
While businesses in the US are not required to pay Christmas bonuses to their workers, your company could have a contractual obligation to one.
Whether you must give them a bonus is primarily determined by the provisions of the contract. If your workers have target-based incentives and have fulfilled them, you must pay them – unless the person agrees to forgo their rights or accept a lower salary.
What Are the Benefits of Christmas Bonuses for Your Employees?
A modest gesture, such as a Christmas bonus or any other form of bonus, may go a long way. It expresses gratitude to workers for their hard work, devotion, and effort. It may also help boost morale by fostering a sense of belonging and pride.
Bonuses, on the other hand, may be a double-edged sword: botch them, make a worker feel cheated, or underpay them, and you risk having the opposite effect!
That is why it is critical to have first designed and established a good compensation package. It's even more crucial to keep staff motivated in poor circumstances, and disappointing them by not delivering a bonus they believed they were owed may be a major de-motivator!
Employees are irritated by performance evaluations when there is a lack of openness in communication; it may also have a negative influence on their productivity, conduct, or disrupt their psychological relationship with your company.
Should You Give Christmas Gifts to Employees?
It is always better to give them! Giving your workers a present that is non-denominational and accessible is a terrific way to show your gratitude for the job they perform for your company. According to one research, 94 percent of workers believe that receiving a Christmas present from their company will make them feel respected, appreciated, and happy at work.
Christmas employee presents are also a great way to show your appreciation for your workers; 65 percent of employees believe that recognition enhances employee engagement, and 50 percent believe that it improves relationships with managers and develops trust in their employers.
Best Christmas Gift for Employees: GoRiser Standing Desk Converters ML2
GoRiser Standing Desk Converters is a great practical present that can help your employees stay healthy and fit while they work. A standing desk can offer a reason to move around a bit, especially when you spend pretty much all day seated while working.
The height can be adjusted to suit pretty much anyone. A push handle on the right side can adjust the desk according to 6 different settings, which accommodates all kinds of users. It is a highly-functional tool since it rises or folds up or down in a straight motion. This helps to maximize the workspace while ensuring that it doesn't go out of its own footprint to change.
The standing desk has a really sleek and elegant design that won't look out of place at the workplace or at home (for remote employees!). This makes it a lightweight and compact design that fits well into small workspaces too. It goes with pretty much any table or desktop, even with limited space on the surface.
But don't worry about having enough space to work! The 26-inch spacious surface to work on is a suitable size. This means that it can hold on to a laptop of any size along with accessories! Plus, the skid-resistant base ensures that it will not shift or slide from the table at all.
The standing desk is made with durable steel that offers maximum sturdiness. This steady foundation is reliable for writing, computing, and any other work, making it one of the best Christmas gifts & bonus ideas for employers.
We hope you now have a better understanding of how Christmas bonuses and gifts work for employees. You can take these Christmas bonuses and gift ideas for employers and run with them this holiday season!