One of the best ways to reward hard-working employees and boost happiness and good morale in the workplace is through giving bonuses. Most businesses offer bonuses as a gift during the holidays or as a reward for professional achievement and productivity. However, some companies award their dedicated staff monthly bonuses and reap the benefits of dispensing a little extra to their employees, through effective employee recognition programs.
As companies continue to look for better ways to improve workforce morale, employee satisfaction, and productivity, some have opted to incite their teams in the form of increasing the number of bonuses given. By offering generous bonuses to their workforce, management can benefit from a wide range of improvements in their labor pool.
Before deciding on how often businesses should be giving their staff bonuses, and for what purposes, it’s important to understand what a bonus is. A bonus in the strictest definition is an amount of capital given to an employee either as a gift, like the ever prevalent “Christmas bonus”, or are given as a reward for exceptional performance.
Usually, a company offers bonuses to employees after an increase in productivity or some other large achievement. That being said, bonuses are not a given. Managers or management teams don't have to give bonuses at all, and the amount given in a bonus is completely up to their discretion.
Most companies offer bonuses because the market pressures them into it. Bonuses have become fairly common in the workplace and employees tend to expect them as a reward for good performance. Businesses tend to feel pushed to offer bonuses or risk losing staff to competing companies.
Even though companies can offer a bonus for just about any reason, there are a few main types of bonuses that employers hand out for specific reasons.
The most common bonus is the annual bonus and it is the most prominent form of bonuses in the job market. An annual bonus is often given at the end of the fiscal year as a nice reward for a good year’s work. It works as a desirable incentive for employees to work hard and stick around for the long run.
Holiday bonuses are another common way to disperse extra pay. Usually given out as a gift for the winter holidays as an act of good favor, holiday bonuses also serve as a pat on the back for keeping up the hard work during the rush of the year’s end. The timing of the extra income near the holidays makes them popular for many employees.
Spot bonuses are given at the will of management as instant rewards for extraordinary work on the part of an employee. If a manager or boss notices that someone has gone above and beyond to increase productivity and company profits, they tend to reward their hard-working member with a nice token of appreciation for their commitment.
Another common bonus is the signing bonus. This is given as an incentive or a reward for accepting a new role. This bonus is a good way to entice quality candidates to an open position.
As the name suggests, referral bonuses are bonuses given to employees as a reward for referring candidates for positions in the company. The bonus is usually given after the referral has been hired and proven to be a good addition to the team. This incentivizes staff to look for more possible employees and grow the company. It can also eliminate some of the stress of recruiting for the business.
When it comes to deciding on the pros and cons of offering a monthly bonus to staff, employers have a lot of possible benefits to giving their hardworking employees a monthly bonus.
People tend to want to work harder and more efficiently if they are given incentives. Even though all of the employees are going to get paid for their work, it doesn't hurt to entice them to put in a little extra for a reward. Bonuses encourage staff to strive to increase their productivity and the amount of time and care they put into their work.
No matter what, an employee knows they will receive a paycheck for their labor. However, if there is an extra perk for adding that extra effort, they are more likely to want to work harder. This can lead to improved profits and productivity for the company.
Many people tend to push themselves to work hard for their own bonuses. However, employees also tend to work harder when they are surrounded by other hard-working individuals. If all of your employees have an incentive to be more productive, they will tend to encourage those around them. They will increase their own productivity and therefore production in the workplace will grow as well.
Not only will productivity grow by adding more incentives to work hard, but bonuses have been shown to increase employee satisfaction in the workplace. It’s no secret hard-working staff want to be paid what they’re worth for their work. Plus, any dedicated employee appreciates a little extra income for a job well done.
Offering your staff generous bonuses shows your committed teams that they are appreciated and that their work is worth the additional capital. Happy staff are more likely to work harder, and more efficiently as a group and on their own, increasing productivity and profits.
Hardworking employees put in their time and effort to build up the business and if everyone is pulling their weight, there's no reason not to incentivize a little extra cash on the side for a job well done!
Bonuses are a great way to motivate employees and teams to work together to accomplish goals. They will be more likely to keep up with the demands of the business and go above and beyond to make things happen.
Employees want to impress their bosses and get financial rewards for all their hard work. They do this by proving themselves in the business and making great progress in their work.
That being said, why not offer a monthly incentive to increase productivity and employee happiness in the workplace? Why wouldn't you want the business to benefit from the assets to be gained from offering rewards for hard work and accomplishment?
While adding a monthly bonus will have to come from the overall labor budget, you don't have to hand over thousands to impress the staff. A bonus can be any amount you want. If you’re offering monthly bonuses on top of a paycheck, it's not unreasonable to keep a monthly gift of good favor at a conservative proportion.
A little extra on top of a paycheck is a fantastic way to sweeten the deal of putting in a solid month’s worth of work and going above and beyond to make things happen. Offering monthly rewards for hard work encourages employees to strive to do their best and find new ways to increase productivity!
Monthly bonuses are a surefire way to encourage staff to work hard all month long, creating a consistent and productive workforce to accomplish all the necessary tasks to keep things running smoothly!
Implementing a monthly bonus can be tricky. There’s a lot of factors to consider before diving headfirst into handing out that extra cash each month. Start from the ground up when implementing a new bonus system so you make certain that the process is carried out legally and get off on the right foot. Employee relations resource blogs can be a useful tool when deciding the best way forward.
Begin carrying out your new bonus plan by deciding what the requirements to receive said bonus are. Does everyone in every department receive a bonus? If so, how much? Are they given out just because, or does an employee have to meet certain criteria to receive the bonus at the end of the month?
Determine the requirements and logistics of the bonus, and how to receive it. Make those guidelines very clear and communicate them to the entire staff, so that everyone is aware of the system and the benefits.
Decide on an appropriate amount to give out monthly to your employees. The amount should be in line with your budget, but also be worth giving out in the first place. Don’t make it too high and break the bank, but don't make it so low that it doesn't make an impact.
Like paychecks and salaries, bonuses are taxed on. Make sure that everyone is aware of the tax requirements so that everything is done legally. If needed, bring on a reliable accountant to tackle the matter of taxes, so everyone stays out of the danger zone.
Finally, get the ball rolling ASAP! Implementing the new monthly bonus should start as soon as you can so that you can begin seeing the increase in productivity by rewarding your hardworking staff!
Monthly bonuses are an excellent way to boost productivity and workplace morale! Offering an incentive to work extra hard all through the month gives employees a goal to achieve and a reward at the end of the long haul! By adding monthly bonuses, businesses can expect to see an increase in productivity, efficiency, and overall employee and workplace satisfaction!
You must be logged in to post a comment.