November 19th, 2013Holiday Bonuses: Cash Or Gift?
How do you get to be the boss/company that everybody wants to work for? Well, there are lots of ways, truth be told, but with the holidays upon us it’s helpful to remember that the Christmas (‘holiday’) bonus shouldn’t be a thing of the past just because the economy stinks! When you’re trying to think of an appropriate amount for a cash bonus or are tossing around different corporate gift ideas, do not hesitate to do the right thing and remember your employees around the holidays.
A Number Of Things To Consider
Here are a few things that you might want to think about when you’re trying to decide what kind of holiday bonus to get your employees, if any:
- What are you trying to say with this bonus – what are you trying to achieve
- Make sure that the holiday bonus, whether it is in the form of cash or a gift, is doable if it comes out of your business’s budget (utilitarian gifts with the company’s logo embossed upon them is a very affordable option)
- Yes, size matters – giving too little is nothing short of an insult
- If you’re trying to make a decision between a party and a gift – again be it cash or a present of sorts – go with the gift (parties are nice but let’s face it, money is money and a tangible gift is a gift)
- In fact, who would rather have a bonus/gift than a party? Only about 73% of the working population. That cash gift was a favorite of approximately 61% of workers whereas time off that would not be considered official vacation time was preferred by approximately 37%.
Nobody Wants To Party Hearty Anymore?
Now I’m as up for a party as anyone – particularly if it has an open bar! But given the choice of extra money, a really nice gift that is either luxurious or fully utilitarian and a fleeting party from which I will probably have a hangover the next day… The choice is relatively simple. It’s when you decide not to give a gift at all that you have become even more notorious than Ebenezer Scrooge. If you saw the movie National Lampoon’s Christmas Vacation, you’ll know to what I’m referring. Imagine how different the movie would have been if the boss hadn’t been such a cheapskate. Even the guy’s wife branded him as such.
Key: Remember to consider that cash bonuses are reported just like payroll and are suject to taxation just like the employee’s wages. On the other hand, non-cash bonuses are not taxable as such. A ham, a turkey, a gift certificate, gift basket, etc. make good bonuses that won’t be lessened by Uncle Sam… Let him get his own damn Christmas bonus! Happy Holidays!