Employee Compensation During the Holiday Season

During the holiday season, most entrepreneurs and their employees work harder than ever to make sales during this critical time of year. The holidays also bring an air of festivity and celebration, and a desire to appreciate and give thanks.

Here are some ways you can compensate your employees to thank them for having been a great part of your team this year:

• Aim to close early. No matter how much your employees love working for you, they'll want to spend time with their families over the holidays. If your business can handle it, close the office early on holidays like Christmas Eve and New Year's Eve, and still pay the employees for their time. Depending on the nature of your business, you may also want to consider a shortened schedule the week between Christmas and New Year's Day.
• Comp time. If your business is in retail or another industry that requires employees to work extra hours on or around the holidays, allow your employees to comp their time after the busy season is over. For example, let them take a paid day off or leave early a day or two in January when business is slower.

• Celebrate. A small business won't have a big company party, but you can still take your employees out to lunch or dinner to celebrate the season. Do this during typical working hours as a company paid event. At the event, honor each employee's accomplishments that year and thank them for their service. Give each employee a gift. Gift cards to stores with many locations or easy online shopping make great gifts everyone will use and enjoy.

• Give a bonus. Nothing says thank you to your employees like a holiday bonus. If your business' cash flow is low, even a small amount of additional compensation will go a long way. Consider also giving your employees each a small percentage of the increased holiday sales, or increasing their commission during a certain holiday period. Keep these rewards equal across the board between employees.

Employees who feel appreciated and treated well over the holidays are more likely to stay with your business in 2017. Contact us for help financially managing your business in the coming year.