Holiday Bonus

With the holiday season comes the annual question, "what should the Practice do about giving a holiday bonus this year?" Well before you answer that question consider this?

Is your holiday gift a seasonal thank you or is it part of the employee's compensation?

If it is the later and you are thinking now about what you should do, you are in trouble. That's because you should have a predetermined formula for calculating compensation bonuses or you can never be fair about it - either you will be under-rewarding the employee or the Practice. Neither is healthy or acceptable. What should the formula be? That depends. It depends on matters of risk, competition, performance, contribution, leadership, finances, labor availability, relationships, promises, and more. Do the best you can to be fair to both your employee and your Practice this year but more importantly start now to determine a fair, rational, and disciplined bonus calculation formula for next year. Even better move to a variable compensation program - that will solve the bonus matter and in fact the entire compensation matter once and for all.

If your holiday bonus is simply a thank you, consider an alternative this year... Give the gift of time. The holidays are a little slow for many Practices, so consider giving your people an extra day, or portion thereof, off to spend with family and friends! Then make a donation to a charitable organization in the name of Practice team! Perhaps you might even want to get together as a team to spend part of a day volunteering to help a charity. It's great service to your community, recognition for your employees, morale builder, and don't underestimate what it will do for your Practice's reputation in the community.

Enjoy your holidays and make them rewarding - it matters!

Bob

Copyright 2007
Performance Builders