Our company of about 80 employees is re-thinking hosting a holiday party this year. It is a big expense, takes lots of planning, and I don’t know if it is really means that much to the employees or if another gift or bonus would be more appreciated. What do you suggest?
Dear, Don’t Want to be a Scrooge,
Before spending any money on fringe benefits, you’ll want to deliberate thoughtfully because you could be setting a precedent for years to come. Determine if this holiday perk is something that can be measured, i.e. employees get a bonus/gift card/Christmas party because you achieved an annual sales goal/reduced costs/achieved a milestone. Or is it simply a token of holiday cheer?
What do employees want? Glassdoor, a career website where employees anonymously rate their companies, has conducted an annual survey in years past that includes employer holiday perks. Nearly three in four employees said, basically, “Show me the money,” preferring a cash bonus, followed by the options of salary raises, more paid time off, grocery gift cards, working from home, company stock, health care subsidies, and gym memberships. Holiday parties – even with an open bar – continue to be one of the least popular perks.
BONUSES. Let’s look at the most popular reward. If you decide to go the holiday bonus route, will there be different levels for employment tiers? If the amount will vary year-to-year because it is based on a goal number or yearly profit amount, be sure to communicate that to employees. You don’t want to have a disgruntled worker next year when their bonus is not as much because company profits plunge. Remember, also, to let employees know that taxes will be deducted. (Thanks Uncle Sam, aka “The Grinch!”) If you’re feeling especially generous, you can “gross up” the bonus and give each employee more to allow for withholding, so that their actual check is a nice round number.
GIFTS. Holiday gifts are a broad category; one size does not fit all. While some co-workers may enjoy a bottle of wine, the gift could offend a teetotaler. Employees may not be thrilled to get a lovely gift item with your company’s logo emblazoned on it. I know, you’re trying to take the expense out of the marketing budget, but it could come off as tacky. Gift cards – whether to a favorite local restaurant or department store, or a universal card that works at any store – are a nice way to show appreciation to employees at the holidays. (Check with your tax guru about whether gift card amounts are taxable.)
PARTIES. The office party can be looked upon with eager anticipation or with dread. Some companies with deep pockets throw incredible bashes. I’m going to go out on an evergreen limb and say that a party should not be a substitute for a bonus. Hard-working employees may resent every decoration and each platter of shrimp cocktail, when the money spent could have been dispersed to every cog in the company machine. Since you’ve thrown parties in the past, if you do decide to give bonuses or gifts instead this year, you could still suggest an office potluck or cookie exchange event. This will satisfy the social butterflies in your company who actually looked forward to the office Christmas party.
For employees, if your company does have a Christmas party, don’t be “that guy!” For tips on how to behave at the office parties at the holidays or any time of the year check out my post, Celebrate the Smart Way, and this YouTube video from across the pond:
Readers: What is the most unusual or appreciated holiday gift you’ve received from an employer?
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