Christmas is just around the corner. Business owners had their shares of ups and downs this year – partly because of the concern around the COVID pandemic and partly because of the incredible growth in eCommerce. Now is the time for employers to decide on Christmas bonuses for their staff. Most businesses tend to give out luxury corporate gifts to show how much they value their employees and keep them motivated for the coming year. Others opt to give performance-based bonuses to their staff, which vary from employee to employee depending on their performance and their results. On the other hand, others choose to give the same bonus to each employee.

Bonuses do not always have to be financial. Of course, that’s what most employees expect from their employer, but there’s more you can do to make your bonuses special for your team. Small efforts like hiring a laundry services for each employee can help save them time and money on laundry. Or, gifting them a trip to their dream destination is a great way to cheer them up.

Here are 6 key reasons you should consider giving a Christmas bonus to your staff this year.

• It Helps You Retain Staff

Employees love bonuses, even if it’s just a small holiday gift. You should make a habit of offering incentives to your employees on every occasion. If you don’t give regular cash bonuses, consider buying your staff a Christmas gift this year.

Every employee deserves a bonus for their hard work, dedication, and commitment to work. Whether it’s a cash bonus or a family trip, a Christmas bonus will always be appreciated. Read More to learn how you can give different kinds of incentives and rewards to motivate your employees so that they are likely to stick around.

• It Motivates Your Employees

Performance-based bonuses, is the perfect way to give your employees feedback about their performance. In fact, one of the main reasons people quit their job is a lack of motivation and not feeling part of the bigger picture.

They don’t know how their performance makes an impact on the business. And, let’s face reality – people want more than their monthly paychecks. They want feedback. They want to know how they’ve contributed to the company’s success. So, what can be a better time to compensate them for a job well done than Christmas?

• It Boosts Productivity

Another reason why businesses should consider Christmas bonuses is that they increase productivity. A study by the Academy of Management showed that simple acts of gratitude made workers feel valued. They were more supportive of their co-workers and worked harder to help organizations achieve their long-term objectives. If a small gesture can have such a powerful impact on your employees, think about how a Christmas bonus can motivate them.

• It’s Not Expensive

Many small business owners worry about the expenses they will incur through Christmas bonuses. After all, if you give a bonus to each worker – whether they are in senior management team or on the cleaning staff – this will get expensive. However, bonuses pay for themselves in the long run.

Think about it – with every bonus, you get a motivated, productive, and satisfied employee who will give their best to contribute to your company’s growth. Besides, you don’t have to give expensive gifts to your workers. You can opt for a Christmas bonus that’s within your budget.

• It Creates a Healthy Competition

Giving bonuses can create healthy and friendly competition between your employees. You can offer exciting incentives to your top performers and reward them with the best gifts. This will encourage other employees to perform better and get the best bonus. It will keep the competition between your employees alive and increase your employees’ productivity.

However, a Christmas bonus should not limited to high performers. At this special time of year, every employee deserves a bonus. So, the best thing you can do is offer additional incentives to selected employees, those who surpassed your expectations with their hard work and dedication.

• It Shows Appreciation

A recent survey on the impact of the pandemic on small businesses showed that only 41.6% of participants were sure about giving a Christmas bonus this year, with many saying they couldn’t afford it.

Christmas bonuses are given as a gesture of appreciation. It’s the end of the year and it’s important to thank each employee for sticking around and helping your business grow. It strengthens the bonds between co-workers, and increases your staff’s loyalty to your business. Not only will a Christmas bonus boost your employee’s morale, but it will motivate them and give them a reason to keep working for you.

Final Thoughts

If you’ve never considered Christmas bonuses, now is the best time to give it a try. Your employees will be super happy to receive a Christmas bonus and, after all, they deserve it. Let your employees have the best Christmas this year with an exciting bonus.