| It wasn’t too long ago that most companies offered some sort of year-end incentive for workers. Whether a gift of food, a lavish party, or an extra envelope from the payroll department, people looked forward to what reward the month of December would bring. But the times, they are a-changing, in many business sectors.
According to financial reports, including information published in 2006 by the “Christian Science Monitor,” the holiday bonus, and even the company party, is becoming a distant memory for many workers. Instead of the year-end bonus, often seen as a gift during this time of giving, many companies are opting out in lieu of performance-based bonuses that can come at any time of the year, and directly relate to employee performance. Additionally, many companies have changed their fiscal year so it no longer coincides with the calendar year and the holiday season. This in itself puts an end to holiday-timed bonuses.
There are mixed reviews about the lack of holiday bonuses. Some see employers as “Scrooges” for taking away a joy of the holidays. Others find no fault with the practice, provided there are clear-cut incentive plans available that can help employees earn extra based on good performance. Still, when companies prove profitable for the year, many employees expect to see a trickle-down effect.
Many businesses have turned to gift cards as a way to say thank-you to employees. Instead of the “holiday bird” of years past or even the ubiquitous fruit cake, gift cards are given out for area retailers or big-name chains. But do they make up for the bonus? Usually not.
Because holiday bonuses are no longer a sure thing in today’s business culture, experts say employees should not base finances or purchases on the expectation of a bonus. Instead, they should take it upon themselves to squirrel away money to be used for big purchases or for extra cash for holiday shopping.
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