The etiquette of holiday bonuses

The season of giving extends beyond family and friends. Often, your employer gets into the holiday spirit by throwing a party for its employees, decorating the office, and if you’re lucky, offering up a holiday bonus to celebrate a successful year of business.

While a holiday bonus is certainly welcomed, The Protocol School of Washington President Pamela Eyring says you shouldn’t expect to receive it.

“Typically, a holiday bonus is discretionary,’” Eyring said. “Your employer is not required to give one unless it’s part of your employment contract in which it would be guaranteed.”

Employers might decide to give a holiday bonus based on a percentage of your salary, she explains. If the company is doing well financially at the end of their tax year, it might give holiday bonuses to reduce taxes on its profit and to show appreciation to its employees. And it might not come in the form of cash.

“Some companies might give incentive trips, concert tickets, gift cards or time off,” she advises.

While a holiday bonus is non-guaranteed compensation, performance bonuses are based on your performance along with the company’s financial success. These types of bonuses are given after a performance review on an employee’s goals and performance indicators. These tend to be more expected.

Eying says to take into consideration these factors when it comes to whether you’ll be receiving a holiday bonus.

1. Do you know if the company is doing financially well or still in recovery from the pandemic? If the latter, perhaps you avoid even asking about a holiday bonus.

2. If you’re like Clark Griswold from The movie, Christmas Vacation, receiving and expecting one year after year, schedule a meeting with your supervisor to ask why the company didn’t give a holiday bonus or why it was reduced. Show more concern for the company’s well-being when speaking with your supervisor than your own personal desires. Maybe it was just postponed. It’s much better than kidnapping your boss on Christmas Eve!

3. Employers who do give a yearly holiday bonus and are planning on reducing it or not giving one should inform employees on the reason why. They should also be sure to include whether it will be restarted next year. This helps with perceptions and can still keep the workforce motivated.