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How do you determine Employee Christmas bonuses?

In a company with both hourly and salary Employees, how do you determine Holiday bonuses by longevity, performance reviews, a mixture of the two or a completely different way? Would love to hear some different perspectives. Thanks.


Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

We actually did away with a Christmas bonus and went to a monthly bonus program tied to specific metrics based on the NI of the company. The Christmas bonus became something that was just expected as a gimme and we really wanted a program that had some teeth to it and created some ownership. You control your score card metrics by how well you hit your targets.

If you want an annual bonus program I would definitely tie it to performance as much as possible.

Topic Expert
Patrick Dunne
Title: Chief Financial Officer
Company: Milk Source
(Chief Financial Officer, Milk Source) |

I have never seen Christmas bonuses in my career. I have seen certificates ($20-$50) given out for food or simply Am Ex gift cards. Everyone get the same amount. If you are truly just giving out a holiday bonus that isn't tied to performance, I would consider a nominal item like the above. If you want true incentives or bonuses, tie it to profitability and cash flow...things that can be true indicators of business success.

Keith Johnson
Title: Principal
Company: Keith E. Johnson CPA PA
(Principal, Keith E. Johnson CPA PA) |

I agree with the above. If you have a Christmas bonus, it really is a gimmie and it becomes expected, then people get jealous if some got more than others. A company I used to work for gave out toilet paper for a bonus (They were a paper and office supply wholesaler), but everyone got the same bag of stuff.
Other companies I've been to gave out the gift cards for a local grocer. Something small like that where everyone gets the same amount is safe.
The problem is if its tied to performance, you have to be able to explain why someone is getting the amount they did. You may or may not have time for that. If you want to short your lower performing employees some, be prepared to discuss why.

Kundan Lal
Title: Accounting & Finance Consultant
Company: Real Time Cloud Services, LLC
(Accounting & Finance Consultant, Real Time Cloud Services, LLC) |

We don't offer Christmas bonuses, instead we have party on that day. We offer year end bonus to employees to show employees appreciation for a successful year.

Robert Richardson
Title: Finance Manager
Company: Akzo Nobel
(Finance Manager, Akzo Nobel) |

I agree with most of the comments. I would provide a nominal holiday bonus. Same dollar value for each employee regardless if hourly or salary. I would provide a larger incentive bonus during the annual review period. This would be tied to the individual hitting their individual goals and a portion tied to the company hitting the company goals.

Patrick McDermott
Title: Partner
Company: McDermott
(Partner, McDermott ) |

Since it is a gimme and is expected, we now pay $XX per year of service. very cut and dried. then we do an Xmas party meal together each year - some years with spouses and others not.

Crystal Wagner
Title: CFO
Company: Werthan, LLC
LinkedIn Profile
(CFO, Werthan, LLC) |

Thank you for all the comments. Much appreciated!


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