By now, many companies know what they can and can’t do for holiday bonuses. But are you giving out holiday bonuses only because it is the holiday season? You don’t have to give a bonus simply because it is expected. In fact, it defeats the purpose of it being an actual “bonus.”

So, when should you hand out a bonus (or not hand one out)? First, check out this Tower survey. Many companies admitted to giving out bonuses when employees didn’t deserve them. Why!!!!! This money can be better spent – on better employees! Here’s the link: http://www.towerswatson.com/en/Insights/IC-Types/Survey-Research-Results/2013/08/Infographic-2-2013-Talent-Management-and-Rewards-Study-North-America

Back to when to give a bonus.

Consider the following;
1. Did you company do more in sales this year than last?
2. Did 90% of your employees meet goals, deadlines and correct challenges?
3. Is the company in the financial position to hand out a bonus?

If you answered no to ANY of these questions (yes, even one) then skip the bonuses. Sit your employees down and explain why bonuses are not being handed out this year and what needs to be done in order to consider a second quarter bonus. Don’t reward employees who are not making the cut or helping your company to grow, period.

Britanie Olvera, CEO of Building Team Solutions