Happy Holidays? Not if You Forget Your Employees

It’s the only time of year that it’s acceptable to give a fruitcake. Complete with hot cocoa, stockings hung with care, and holiday bonuses… wait, what? Yes, these are all trademarks of the holiday season, especially the bonuses. Tis the season to recognize your employees, and failing to do so could mean losing valuable employees. Consider the case of a PR firm that usually gave large year-end bonuses and without warning one year, shifted that spend into opening a nice new office. Or what about the high-end magazine that rewarded executive employees with a large novelty candy? Both companies suffered significant attrition before the New Year. Don’t let this happen to you.

Photo Credit: National Lampoon's Christmas Vacation

Frustration can simmer just under the surface of your workforce, but your organization can reduce some irritation by implementing formal recognition and review programs. Organizations that create and sustain an effective recognition program have a 31% lower voluntary turnover rate - i.e., employees quitting or resigning - than those with a poor recognition program. In fact, lack of appreciation at work is the number one reason Americans leave their jobs, but you can use it as a retention tool.

According to the latest Randstad Engagement Index survey, U.S. workers say promotions or bonuses are one of the most effective ways to keep them engaged in their jobs. A holiday bonus increases employee engagement and motivation in the office, which means more successfully completed projects and subsequently more revenue for the organization.

The truth is, your employees might be dreaming of a white Christmas, but they are expecting recognition before the New Year. Some (like Clark Griswold) may even be counting on that bonus to make their Christmas a merry one.

How and When to Reward

Just because you tell members of your team how wonderful their work is all year doesn’t mean that will suffice when it comes to the holiday season. Unfortunately, not every company feels that way. In fact, just 27% of small businesses are planning to offer holiday bonuses this year, compared to 35% last year, according to an American Express survey. (Tweet this Stat) That special recognition in the workplace is one of the greatest contenders to combating high turnover rates. So, even though it makes your employees happier at work, it is a business gain as well.

Some pointers:

●      Try to give consistently. If you can’t for whatever reason, let employees know ahead of time.

●      People will talk. You don’t have to give the intern and the top performing sales person the same amount but keep it similar within job titles.

●      Speak up! Bonuses and gift cards have to be declared so give your employees a head up!

The ROI of employee recognition stretches beyond a mere monetary value. The emotional response is what fuels a difference in an employee’s work and engagement. For example, KPMG, an international tax and audit organization, increased awards dispersed throughout the company by 25%. The results were, according to Sara Turner, UK Head of Employee Benefits and Wellbeing at KPMG:

“What you get with the recognition is a really emotional response… Though the monetary value is low, the impact is really huge. In monetary terms, recognition is so much less expensive [than other reward systems], but what you get is this emotional gut response from people who are overwhelmed, happy and excited when they get an award. People are so engaged because someone has appreciated the extra effort they’ve gone to and taken the time to make sure they acknowledge it and that others acknowledge it as well.” 

Think Outside the Box

The business landscape has changed over the last few years. Employees are feeling the effects of a slowly healing economy. Unfortunately, employers aren’t so trigger happy when it comes to expenses that aren’t deemed “necessary.” Individuals on your team expect some kind of bonus around the holidays. If business was down, communicate it well and set expectations before the office party if you are planning on giving a non-monetary gift.

On average, there is an expectation of a 2.9% bonus increase among the workforce this year. (Tweet this Stat) Even if you’re not prepared to dispense a monetary reward for all of the meritorious hard work from your team, leadership can still give employees a “bonus.” If budget constraints prevent a traditional bonus, Glen Tullman, CEO at Livongo Health suggests trying these alternatives:

●      Give a tangible gift - A gym bag, a nice sweater, or a small piece of technology would suffice. However, don’t put any company logos on the gift… otherwise the gift loses the “it’s the thought that counts” factor. 

●      Offer a chance for community involvement - Websites like TisBest allow employers to offer “gift cards” that employees can use towards the charity of their choice. This gives them a semi-monetary reward for their hard work and the opportunity to give back to their community.

●      Give to employee families - Why not engage your employees through their support systems? Families are important to the engagement of your team, so try sending a basket of gourmet snacks or giving a list for the family to choose from.

●      Give time off! Can’t afford a lavish bonus? Give the gift of paid time off. People love unexpected vacations. (Tweet this Tip)

The holidays can be a stressful time for employees. Finishing year-end projects around the office can be taxing. Acknowledging their work and rewarding them through traditional bonuses or non-traditional gifts maintains engagement levels and produces a real ROI for the organization. Bear in mind that performance bonuses and holiday bonuses should be kept in two separate categories. As company leadership, ensure you’ve dotted your holiday I’s and crossed your T’s; make employee recognition part of your holiday to-do list this year. Give your team a little something special (hopefully more than just a holiday fruitcake).

Friends don't let friends be the Frank Shirleys of their company. Spread the holiday cheer by tweeting these year-end bonus tips.

Holiday Performance Burnout

Avoiding Compressed Performance and End-of-the-year Stress

The end of the year is coming and with it comes accelerated deadlines. Even if your office is open between the Christmas holiday and New Year’s, your ability to be productive is really tightened by a three-week month. On top of that, people are distracted, stressed and trying to get out the door for vacation. While you might need to wrap up the year performing at your best, your employees might already be drained. So how do you survive holiday performance burnout?

First, understand what factors hinder your employees from performing at their highest potential:

·        Unrealistic timelines: It’s tempting to say “Yes” to new business so you can close the year with some realized revenue, but can you actually deliver? While retailers are experts at thriving during the holiday season, they’ve been planning since spring. Something new in December can put the pressure on, especially if there’s already a lot of work in the pipeline. Employees might feel like they’re being set up to fail if the timelines are completely unrealistic.

·        Process shortcuts: When timelines are tight, people might take shortcuts just to get things done. Sacrificing process for the sake of saving time can lead to having to redo projects later. When certain teams take a shortcut, other teams could suffer the consequences. If this becomes a habit, some employees won’t bother making the fix after the fifth mistake.

·        Vacation holes: Vacation time can be tough on teams when the departing employee hasn’t ensured that projects can run in their absence. Dropping projects and hoping that teams can handle coverage means more things get dropped. Those left to pick up the pieces will also become frustrated, adding stress to the team dynamic after the New Year.

Next, see how you can address these challenges:

·        Adjust timelines appropriately: Even if new business is knocking at your door, set expectations with the customer and your team as to what realistic timelines look like. Maybe you can deliver some elements over a staggered timeline. Then continue to create a dialogue of expectations between the executing team and the customer.

·        Stop shortcuts before they happen: Processes are put in place to help ensure quality. If people are cutting corners, you can’t guarantee the quality (and then why are your customers paying you?). Check in with employees frequently to catch process shortcuts before they start, reminding teams that the process is there to help. If a project has to be reworked, help employees take the time to do it right.

·        Fill the vacation gaps: Set up a vacation schedule with your employees so people know who’s coming and who’s going. Then have a departure checklist or plan. Employees should be able to provide the status on a project, any expected next steps that need to happen while they’re out, and who’s going to handle those steps (and the handler should have a heads up). Projects can continue and customers won’t be frustrated because things get behind.

These practices should happen throughout the year. Tell your employees that this time of year might feel stressful, but they should go about business as usual.  Following processes and communicating effectively will reduce stress and keep things on track. Remind managers that they shouldn’t add stress if they don’t have to. By aligning performance expectations during the end of the year, you’re likely to have happy and productive teams leading you into the next year.