Let’s Talk About Annual Bonuses!
From the festive celebrations to the time away from the office, there are many reasons for your employees to look forward to the end of the year. As a business owner, paying out bonuses may add to your stress levels, especially this time of the year. What you can do to relief the financial pressure is to space it out over the year. You can either pay the bonus in the employee’s anniversary month or in their birthday month.
Is a bonus a right? Or a privilege?
Firstly, it is necessary to understand that there is NO statutory requirement in labour law to pay bonuses of any sort, and any such payments that are made, are not regulated by labour legislation. This could however be negotiated in a collective agreement or through an industry bargaining council.
However, in the case of the employer who has been paying bonuses each year the situation is slightly different. Those employees will expect the payment of the bonus as a right or entitlement. In this case, you should notify your employees at least 6 months ahead. Notifying them only in November or early December (if you usually pay bonuses in December) that no bonuses will be paid this year could lead to a CCMA case on a charge of unfair labour practice with respect to the provision of benefits.
There are a couple of other things you can use to make employees feel appreciated without forcing yourself or your business to feel majorly strapped for cash.
HERE ARE SOME NON-MONETARY REWARD IDEAS YOU CAN IMPLEMENT THIS YEAR
1. Flexibility at Work - Granting them the opportunity to work from home once a week, setting their working hours, or leaving earlier on a Friday can help employees maintain a good work-life balance.
2. Gifts - Remember the old saying; ‘it’s the thought that counts”, giving them gifts such as; branded clothing, plants, gift cards, a bottle of liquor or wine, coffee membership, or care packages will demonstrate your appreciation and will go a long way
3. Rewards and Recognition - Proper recognition is something that nearly every employee craves. Handing out rewards such as; employee of the month, stand out performer, most improved performer, best customer centricity, etc. will publicly applaud a job well done.
4. Experiential rewards - Treating your employees with a romantic dinner for two, concert tickets, or a discount on a couples’ massage will be a fun and memorable experience they will remember for a long time
Apart from focusing on only the rewards, try to create an environment where hard work and success are recognized and rewarded regularly at the workplace.
We are taking a break from 24 December 2022 - 13 January 2023.
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