Some employers may be thinking that giving bonuses would only be a hindrance to the company, especially during a dry spell, but that’s not usually the case. In fact, added financial incentive, such as year-end bonuses, provides benefits for both business owners and their employees. Think about giving out one of these three kinds of bonuses this year.
- Performance Bonus – These types of bonuses are increasingly popular among small business owners. Giving out a performance bonus to employees that meet certain goals that were set earlier in the year is a great way to increase productivity. The extra motivation among employees to meet, or even surpass, their goals will lead to more profit for the business. The best way to do this is to set goals at the first of the year, and make sure each employee stays on track with quarterly reviews.
- Non-Performance Bonus – These are the types of bonuses that have been around a while, and for good reason. They do wonders for company morale, a key factor to the success of any business. If money is really tight and a monetary bonus isn’t possible, consider giving gifts to all employees, such as a holiday basket, a turkey, gift certificates, grocery or gas cards, etc.
- Longevity Bonus – Did you know that the average employee under 35 will have changed jobs every 18 months? Employees older than that generally move on before the three year mark. It’s no secret that experienced, long-term employees are good for business, so maybe offering a longevity bonus is the way to go. Perhaps a significant bonus at the end of an employee’s third year, or maybe an incremental bonus that grows at the end of each year an employee stays with the company.
Whichever route you decide to take, remember that your employees are the face of your company and the true source of your income. Taking care of them is the best way to ensure that profits keep coming and growing.