Christmas Bonus Can Increase/Decrease Turnover

Discussion
Nov 29, 2004
George Anderson

By George Anderson

Business owners have a means to retain key employees that may be being overlooked — the Christmas bonus.

According to business owners and managers who spoke to the Associated Press, year-end gifts or bonuses are “reciprocated with hard work.”

Cynthia McKay said she lavishes gifts on her 28 employees at Le Gourmet Gift Basket Inc. every year. “I want them to give me longevity,” she said. “The gifts are less expensive
than the cost of employee turnover.”

Giving, say experts, needs to be predicated on a company’s resources. Not all companies can afford lavish gifts and even a great holiday bonus is not going to make up for poor
working conditions the rest of the year, they caution.

The key is to make employees feel appreciated.

Moderator’s Comment: Do Christmas/year-end gifts and/or bonuses increase employee loyalty to a company? What are your do’s and don’ts when it comes to
rewarding employees?

Way back, when we were responsible for the merchandising and sales of a 50-store business selling electronic security products, we instituted a year-end
bonus for store employees. For every paid sick day they were entitled to but didn’t take over the course of the year, they got a half-day’s pay. Days lost to sickness dropped
dramatically, turnover decreased and productivity went up.

George Anderson – Moderator

Please practice The RetailWire Golden Rule when submitting your comments.

Join the Discussion!

Be the First to Comment!


wpDiscuz

Take Our Instant Poll

In general, what impact do year-end bonuses and/or gifts have on employee loyalty?

View Results

Loading ... Loading ...