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How not to anger your employees during the holidays

Collette Parker

December 11, 2007

The holidays have long been centered on giving – beautiful, selfless acts for strangers and nostalgic tributes to those we are grateful for are celebrated this month with colored lights, music and warm fuzzies.

In the business world, this translates into money, and giving adds up – to employees as end-of-year bonuses and holiday gifts, and to clients as logo-filled "thank-yous." So it's time to sweat, right?

Well, hold on to your checkbook. Not every gift needs to be cash and not every employee bonus needs to be an end-of-the-year event.

No Jellies-of-the-Month-Clubs, Please

Employee bonuses are not holiday gifts, says Riz Shakir, president of Six Disciplines Atlanta. "Bonuses are based on an objective criteria," he says, that is clearly defined and evaluated throughout the year. With bonuses, he says, there should be no surprises.

Shakir's clients work with each employee to develop an individual plan for their goals and objectives, not just once a year, but once a quarter. The amount of their bonus is tied to meeting those objectives, and the employees rate themselves every week on their progress toward meeting those goals. "Weekly progress reports provide visibility of whether that's going to be met or not.  It reduces the chance of surprises and disappointments," he says.

Surprises and bonuses almost never mix well, agrees Jennifer Levine Hartz, president of Corporate Hartz. Many families depend on holiday bonuses as part of the annual salary, and budget accordingly (think Chevy Chase in "National Lampoon's Christmas Vacation"). It should never be a surprise if you don't get a bonus.

In the spirit of the holidays, companies often decide to make charitable donations in the name of its employees. However, it shouldn't replace cash that usually goes to the employee. "If you've given cash bonuses in the past, taking them away and instead making a donation does not go well with employees," says Hartz.

In fact, considering the whole family can be a plus. Families should be on board with the bonus system. Shakir recommends sending the bonus goals home in a written form, so the whole family can understand and support the employee. "So if dad or mom are spending extra hours at work or working on a Saturday, the family has bought into it. I've found that to be a very effective way to relieve friction at home."

It's also important to eliminate friction in the workplace. Some companies tie bonuses to individual performance – rather than team goals – which can backfire. Shakir helped a company who had promised bonuses to the warehouse staff based on how many packages each individual shipped out. But many packages required two people to handle them, which made one person wait until another worker stopped the individual packages to help. Everyone ended up getting bonuses, but the customers didn't get their packages on time.

If teamwork is an important part of the work environment, have the objectives and bonuses paid to the team, rather than individuals, Shakir says. That way you create good will, rather than animosity, especially at this time of year.  If you have three people who have to work together, pay a bonus to all three, rather than pit them all against each other. If one is a supervisor, and two have the same title, create a win-win situation where one supports the other. It's also appropriate in that scenario for the supervisor's bonus to be more.

Gifts are Gifts

Gifts, on the other hand, are gifts. "Gifts are given because you are there and a human being, more than anything else," says Shakir. They are more of a thank-you for being part of the family and here with us.

Holiday gifts should not be cash, and if you're considering unloading that truck full of coffee mugs with your company logo on your employees as a gift, think again. Gift baskets, a holiday turkey or a gift that is truly something the family will use together are more appropriate for a present.

Or, instead of giving a small gift to individual employees, some companies prefer to throw a holiday party and invite spouses or entire families. "I worked with one company that celebrated with a party after the new year. They invited spouses because they are an important support network. The company gives awards for meeting goals, for being a good mentor and for meeting certain objectives." But, he says, it's not in middle of holiday season because that's a busy time for families, and because not everyone celebrates the same holiday.

Unloading that truck full of company gear on your customers is okay, though. Or, if you'd rather not give your best client a pen, send a gift that shows you realize it takes a team effort to be your client, or a gift that all the employees can enjoy, like food for the break room. Shakir once sent a video game to a software company. He knew they had a rec room, and that employees enjoyed taking a break with a video game, and the gift was well received.

But remain professional. Even though holidays are religious in nature, doing something overly religious for customers or employees is not appropriate, Hartz says. "People have a variety of beliefs, and you risk offending people. It's business."

After all, what says warm fuzzies better than a small company clock?

Want to share ideas on what you do for your clients and / or employees during the holidays? Visit the Catalyst community forums for further discussion on gift giving ideas.


(Photo Credit: Olena Turovtseva, Dreamstime.com)

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