Real Answers for Life’s Money Challenges
Im the co-owner of a small business with about 20 employees.
Were barely starting to earn a profit again, and were finalizing our budget for the fourth quarter.
My question is: Should we tell employees now not to expect a holiday bonus?
Theyve worked very hard to get us through the crisis.
I dont want to damage morale.
Also, theyve never been promised a bonus.
But weve given them out every year before 2020, so its understandable that theyd expect it.
The top of the email had a picture of a sad-faced pug in a Santa hat.
This was long before the pandemic.
As far as we knew, the company was earning a healthy profit.
Years later, references to Sad Santa Pug are still alive on the companys Glassdoor.
Imagine if wed been told we werent getting bonuses on Sept. 20.
Or even the first week of December.
Would there have been grumbling and quoting of National Lampoons: Christmas Vacation around the coffee maker?
But the blow to morale would have been a lot less severe.
We would have had time to adjust ourholiday budgetsaccordingly.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
You dont want to disappoint your employees.
To disappoint someone, they have to have an expectation.
But when you know you cant meet that expectation?
The best way to mitigate the disappointment is to quash the expectation as quickly as possible.
But thats especially true in 2020, when so many companies are barely surviving.
So yes, tell your employees sooner rather than later that they arent getting bonuses.
Dont do so via Slack or an email.
No need to create unnecessary panic at a time whenjob losses are still rampantwith a vaguely worded meeting invite.
Did you know?
But you and your co-owner have cut your own pay.
Youve put off critical projects that you could no longer delay.
Theres only so much you’re free to cut from the Q4 budget.
Unfortunately, this years bonus was a casualty.
Could you give them a few extra days of PTO?
Or could you give them the week between Christmas and New Years Day off?
Just remember that a holiday bonus creates a once-a-year burst of excitement.
But true goodwill is built the other 51 weeks of the year.
It sounds like youre a boss who genuinely cares about their employees.
If thats the case, I think morale will recover.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
Send your tricky money questions to[email protected].
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
