3 Reasons to Give Your Staff a Holiday Bonus This Year

You may want to fork over that money.

It costs a lot of money to run a small business. And that especially holds true these days given the impact of inflation.

If your small business credit card tab is higher than usual, it may be because supplies have gotten more expensive. And if you're operating on tighter margins, it may be because inventory is costlier to procure and you've been forced to raise wages so your workers have a chance at making ends meet.

If money has gotten tight, you may be wondering whether the time is right to give out holiday bonuses. And if your small business truly can't afford them, then you may have to pass. But if you're able to move some money around to make those bonuses available to your staff, it really pays to push yourself to do so. Here's why.

1. You'll encourage loyalty

At a time when the labor market is still quite strong and workers are still resigning from their jobs at a pretty decent clip, it's in your best interest to do what you can to retain your existing staff. And a good way to encourage your team to stay put is to show your appreciation by giving out holiday bonuses. Or, to put it another way, the $500 check you give an employee who's on the fence about leaving might save you thousands of dollars in recruiting costs if that staff member decides to stay.

2. You'll promote hard work

When employees feel as though their work is appreciated, they tend to push themselves even more to do well on the job. Giving out bonuses could result in an uptick in productivity on the part of your workers not just during the holiday season, but beyond. And if productivity increases enough, you might be able to avoid hiring more staff -- and reaping savings that way.

3. It's the right thing to do

It's one thing if you're looking at handing out holiday bonuses grudgingly to a staff that doesn't really tend to hustle. But if your employees are people who always put in a solid effort, work late as needed without complaining, and have proven themselves to be dedicated to the job at hand, then rewarding them with a modest sum of cash during the holiday season is just plain the right thing to do. After all, wouldn't you want your efforts acknowledged if you were in their shoes?

Don't withhold those bonuses if you can help it

You may not be in a position to give each employee of yours thousands of dollars in the form of a bonus. But if you're able to spare a modest sum of cash as a thank-you to your team, then it pays to be as generous as you can.

You never know when a few hundred dollars might help an otherwise cash-strapped employee of yours salvage the holidays and put a smile on their children's faces. So if you're able to free up some cash to make those holiday bonuses a reality, it's worth doing -- and it's something you might end up feeling really good about.