Portfolio
‘Tis the Season for Employee Bonuses
It’s that time of year again—holiday time. You might be short on extra cash, but that doesn’t mean you can’t recognize the employees who work hard for you. “In this economic environment, it may not be possible to give raises or cash bonuses, but other types of recognition can make up for that,” said Angela Lyons, owner of Baa Baa Sheepskins, a retail store in Eureka, Calif.
Here are some ideas from other small business owners:
1 Exchange rewards points for gift cards. Julia Labaton, owner and president of New York City-based Red PR, a public relations agency specializing in the beauty industry, redeems the points she earns on her business credit card for gift cards to popular retailers like Banana Republic. She gives employees the gift cards instead of bonuses. It’s free, and sometimes she racks up enough points with her business’ everyday spending to redeem $500 worth of the cards.
2 Barter with other businesses. Lyons trades her wares—sheepskin slippers and baby blankets—for gift cards to a nearby restaurant. The restaurant management can use the sheepskin gifts for friends and family, and Lyons offers the gift certificates as employee bonuses. An added perk: Both businesses are exposed to potential new customers.
3 Give the gift of vacation. Labaton closes her office every year between Christmas and New Year’s Day, giving employees an extra week of paid vacation. This allows some employees to spend time with their children during school vacation, which, for many working parents, is priceless. As a business owner, you might lose productivity, but you’re not paying any more than usual. And in many industries, that week is slow anyway.
4 Treat employees to a feast. Everyone likes a nice meal out. Lyons takes her employees and their significant others out to dinner after the holidays every year. After everyone has finished eating, she spends a few minutes praising each of her employees for his or her contribution to the company.
Some other quick ideas: Hire a masseur to give employees chair massages, or offer to have employees’ cars detailed. Sometimes service providers will offer discounted rates for groups. To save even more cash, provide a service yourself—for example, once a month scrape snow off employees’ cars.
Hoping to throw a holiday bash but don’t have the cash? Hosting a holiday party along with another small business or two in the area could also save you time and money.
No matter the gift, employees want to feel appreciated, said Lyons. “It’s the recognition and the thought that goes into how to recognize employees’ efforts that is most important,” Lyons said.