Deciding on Employee Bonus Amounts

Your company counts on the work performed by your valued employees. You want to keep them happy so that they continue to provide excellent service to the company. You already know that showing them how much you appreciate them is often done by paying them adequately as well as providing all the benefits you can such as health plans or retirement plans.

But, when it comes to offering bonuses as another means of showing your appreciation there are many choices to consider. Should bonuses be given regularly at predictable times of the year? Or, should they be surprises? What is often more difficult to decide on is the amount to give as a bonus. Like choosing advertising firms can actually be a point of contention.

The Problems with Bonuses

You are obviously intent on providing bonuses as a way to show how much you care about your employees. Yet, you could create a problem for them which makes you seem like anything but a boss who truly does care about how hard they work for your business. What do you do if one employee is given more of a bonus than another and the employee provided with the lesser bonus discovers this?

It can create some serious issues within the company. But, it could be that your decision was based on something as practical as how long each employee has been working for you. It seemed fair at the time the decision was made to provide the employee who has worked for you for ten years more of a bonus than the one who started their career with you only five years ago.

Also, if the company experiences some issues when it comes to economic changes the decision to pay any employee a bonus amount can be affected by budget concerns. Again, the employees may not know this. This may cause them to feel offended if the bonus amount they expected either falls short of the expectations they had or does not arrive in their anticipated year-end paycheck at all.

Handling Bonus Issues

If your company issues bonuses already and does so with regularity, it could be your bonus amounts are determined by a percentage of each employee's salary. For example, if that amount is ten percent, an employee may grow to expect that amount and even anticipate a certain, specific sum each year. Of course, this is also if the bonuses are paid out at a certain time each year whether annually or quarterly.

If, for some reason, you decide to change the bonus routine do not make it more of a problem by avoiding the issue. Address your employees so they can be aware of the situation and why it is so. Since these are valued workers, they should be understanding and perhaps even want to work harder to help the company through a challenging financial time. You can also assure them that the bonuses will resume after the finances improve for the business.

Remember, bonus amounts can matter greatly to your employees and may not be due to them having a sense of entitlement. Your employees may depend financially on an expected bonus amount. This is one reason it is important to choose amounts and offer either some consistency or, if that is not possible, at least some explanation as to why things needed to change.

If your company wants to offer gifts instead of cash bonuses, it is really important to let employees know this in advance, too. You value your employees. Deciding on employee bonus amounts is an investment in each of them and must be done with care.

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