Christmas Bonuses and ?13?th Checks? are a hot topic around the office during the last few months of the year. Many staff have the opinion that they deserve it. And many business owners dread paying bonuses as there is no plan other than taking the bonus out of the profit account, if there even is any profit.
But there is a way to increase company production in the last 2 months of the year by creating a game that is a win-win for both the staff as well as the company owner.
Announce that there will be a Christmas Bonus payable on the last working day before Christmas holidays. The bonus will be payable based on the performance of Gross Income leading up to Christmas. The Christmas Bonus Game must be communicated effectively to one?s staff as this will motivate everyone to start producing more and more in order to increase their bonus. Thus booming the business in order to increase their bonus.
To calculate this bonus, the Gross Incomes for the last 4 weeks prior to Christmas are averaged out and a percentage of this average Gross Income is taken for the bonus sum. The weeks start in the last week in November somewhere depending on when your last working day is.
This total bonus amount is then divided evenly amongst staff with the executives receiving 20% higher bonuses than the rest of the staff.
The funds to cover this bonus some off the Corrected Gross Income which is Gross Income less Sales Tax(VAT) and less Cost of Sales. The finance authorities in the company should plan ahead for this bonus and set aside monies throughout December each week so the full amount does not have to come out of one week?s income the week before Christmas.
This strategy will help you get your staff motivated to boost their production while booming your company for the last few weeks of the year, instead of working less as they start ?winding down? for the year and getting into ?holiday mode?. This is because one?s staff makes their own bonus and this responsibility now does not longer fall solely on the business owner.
This article is based in part on the Business Administration works of L. Ron Hubbard. Contact us to learn more about how these policies and strategies can benefit you, and how we use them to consult business owners. Book a session with us here.