Small Business in the US

What to Consider When Giving a Holiday Bonus

Inc. Magazine |

In Brief...

Greater economic conditions certainly play into whether to give a holiday bonus, Dannenberg says, but it's good form to show employees appreciation for a successful year. If a business already pays a year-end bonus, a holiday bonus becomes more of a gift of appreciation than part of employees' annual pay and benefits package, Dannenberg says. "If you're in a business where you get year-end bonuses, usually Christmas becomes far less of a significant issue," he says. Ben Hemminger, CEO of Fashionphile, a Beverly Hills company that sells second-hand luxury handbags, says he gives a year-end bonus around the holidays. Holiday bonuses meant as tokens of appreciation don't belong in a business plan, Dannenberg says. Start-up businesses should do some footwork before deciding how to approach bonuses, Dannenberg says. "You give someone a really small amount, it's insulting," Dannenberg says.

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