The Christmas Bonus
Stabroek News
December 15, 2006
This is the time of the year when every employer and employee looks at the Christmas Bonus in many different ways.
I challenge every employer to be very fair with your employees. If you know you have had a great year, then please reward your employees with a fair bonus if they deserve it. With our nation's economic woes, we must realize that without that extra pay, most employees will not be able to buy that extra something for their loved ones. Employers should review their profits for the year; the length of the time the employee is with the company and their performance to determine the bonus. Depending on who is to receive the bonus, the incentive payment may be determined on the basis of cost reduction, quality improvement, or performance criteria established by the business. This is not the time to tell an employee they have not performed. That should be done at their annual review and not at Christmas.
The employees at all times feel they deserve a Christmas bonus because they worked hard and some just because it is Christmas or as one major local CEO told me, it seems to be a Guyanese tradition of an expectation of a 13th month pay. I asked the President, who was sitting near to me on his flight back from Bolivia his opinion; he rightfully said it was a private sector issue.
In corporate America, where I worked for a large portion of my life, we had very stringent rules on how bonuses are paid out. A bonus is an incentive payment that is given to an employee beyond one's normal base wage and based strictly on performance. Bonuses have the advantage of providing employees with more pay for exerting greater effort, while at the same time the employees still have the security of a basic wage.
Bob Nelson (author of 1,001 Ways to Reward Employees) has created a list of "Top 10 Ways to Motivate Today's Employees."
Pay employees fairly and well; treat employees with respect; Praise accomplishments; Reward outstanding performance (with promotions and opportunities). Do not tolerate poor performance (train or remove); Celebrate successes and milestones, organizational or personal; Clearly communicate goals and responsibilities; Involve employees in plans and decisions; Listen to employees' concerns; Create opportunities for employees to learn and grow; and Share information openly, and tell the truth.
The public servants are the most challenged at this time of the year. With their pay already at the lowest level they struggle to provide for their families all year much less at this time of the season. Presently we have the city workers picketing for their pay, which puts a damper on others who will receive their pay plus a bonus.
We are faced with many issues in our labour force today, from the importation of foreign workers to manage our hotels to the lack of a development programmes for our employees so they can compete. I am a strong believer that if you develop a performance plan for your employees and measure it throughout the year, Christmas bonuses will be an easier decision or expectation for both parties involved.
I watch everyday how many store workers on Regent Street get to work early and have to stand outside and wait until the owner shows up to open the store. They then must work under high pressure with archaic purchasing systems where a consumer must go to at least three people in order to buy one product. It is very difficult to excel in this environment. Therefore to all my fellow employers, if your employee has done a great job, please ensure they get a Christmas bonus this year. I recommend for next year, that each employer develop a performance plan for their employees at the beginning of the year and what is expected in order for a bonus to be paid. We must work on changing our working culture in order retain our employees in the era of future competition. Until next week: "Roop"