Awarding your workers bonuses will enhance their life considering the financial crisis affecting many people. Many individuals get huge bonuses in the financial industries which have raised a heated debate. A heated debate is seen among different employee who argues on the use of bonuses. If a company do well financially, they reciprocate this by providing bonuses or a little extras amount to their workers to boost their morale. It is important to carry out an extensive research regarding the amount of bonus to ward to your worker to avoid incurring unnecessary expenses. Several aspects need to be taken into accounts when you want to know the amount of bonuses to give your employee.
It is recommended that business owners to evaluate their annual and monthly revenues to see if they can set aside some cash to award their employees. If your firm has extra income, then it is important to award your workers the bonus as an act of appreciation. The 1099 form for a particular year will provide you with figures on how much extra your firm has been paying out on top of your worker’s salary. You can review all the amount of money you have been giving your workers for a whole year by checking on this form. If you have a tight budget and you have been paying huge bonuses, it is essential to cut those payment and concentrate the amount on growing your business.
Most workers do work hard if they realize that there is bonus to be awarded that’s why it is being used by many companies. They argue that the bonuses encourage hard work among employees and can increase the productivity of the company in the long run. It makes the workers appreciate the fact that they are being rewarded for their hard work, and also it will boost their morale in the long run. If you are offering the bonuses with the aiming of boosting the productivity of the workers, it is essential to awarding it when you identified the worker who deserves it. If you are not careful in the awarding, it won’t work, and the production will remain the same each year.
Note that some workers may put in some false figures or lie to you when they realize there is bonus awarding if they met certain targets. Some workers may develop a negative attitude toward each other if you keep awarding the same employees. Various unethical issues have been reported thus the need to be careful when you are giving out the bonuses.