Christmas bonuses are a way for employers to show appreciation for their employees for their work effort throughout the entire year. Some businesses give out cash bonuses while some businesses give their employees a non-cash gift either in lieu of a cash bonus or in addition to a cash bonus.
Whatever form Christmas bonuses take, two questions linger, is your company in a position to pay out Christmas bonuses in 2020? Has the COVID-19 disrupted the Christmas bonuses plan for your employees?
If yes, your company may benefit from some helpful guides to paying employee bonuses this year.
If your company has been paying Christmas bonuses every year, your employees may be looking forward to another bonus payout this festive season. But given how the COVID-19 pandemic has upended the day-to-day operations and the sales of so many businesses, what kind of Christmas bonus will be available to employees?
The size of a business and how sales have grown or declined during the pandemic will be the determinant factors on how Small and Medium Scale Enterprises (SME’s) calculate this year’s Christmas bonuses.
2020 has witnessed problematic statistics to businesses. Nearly 131,000 businesses have faced challenges accessing finance. And have expressed uncertainty in the business environment with 770,000 workers (25.7% of the total workforce) having their wages reduced. This is according to the COVID-19 Business Tracker Survey conducted by the Ghana Statistical Service (GSS), in collaboration with the United Nations Development Programme (UNDP), and the World Bank, during the partial lockdown that occurred in March. Also, there was an average decrease in sales of an estimated GH¢115.2 million with firms in the trade and manufacturing sectors being largely affected.
Though the economy is heading towards pre-lockdown levels, it will be a while for full economic revitalization to take hold.
Some small and medium scale enterprises are still trying to recover from the stifled growth in sales and revenue hence, limited to no bonuses for employees this year. So, what can these businesses do to still let their employees know they are well appreciated for their effort?
No Christmas Bonus Payouts?
Be honest and come clean
If your company has without fail given Christmas bonuses in the past years to employees but will be unable to do so this year, let your employees know as early as possible. Most employees count on that bonus cheque and factor it into their budget. Do not try to squeeze your company funds dry, knowing you cannot afford to give out Christmas bonuses this year. Your employees will surely understand given how the COVID-19 pandemic has stifled the economic environment.
If your company cannot afford to give cash or gift bonuses this year, you might consider giving your employee some paid time-off. Time-off to relax, undertake some errands, and spend with family and friends is something that almost if not everyone could use more of. Employees will appreciate that extra day off to just kick back after all their hard work during the working year.
Carefully and fairly choose the bonus amount and gifts
If you can afford to give a bonus this year then by all means do so but carefully and fairly. Give bonuses based on your business capacity. Do not give beyond your business limit. Moreover, when given out bonuses, make sure they are fair, unbiased, and equitable. This is to ensure no worker feels unappreciated.
Once you take care of the people that take care of your business throughout the year, you will benefit immensely as people are motivated to do much more when they are appreciated.
The post Helpful tips for SME’s in paying out Christmas bonuses for employees appeared first on Ghana Talks Business.