Q. "How do I approach year-end bonuses (especially when I can't afford them!)?"
Answer:
Who doesn’t want a bonus around Christmas?! Here are a few frequently asked questions about bonuses and our best practices just in time for year-end!
"What does a holiday bonus look like?"
A “discretionary” bonus - not based on a promise or agreement
- OR -
A “non-discretionary” bonus - a promised bonus tied to conditions being met, such as production, attendance, quality of work, etc.
- OR -
A creative alternative that provides something else of value to the employee
“How do we set up bonuses?”
In the for-profit world, non-discretionary bonuses can be tied to measurable facts like sales. However, in the non-profit world, making sure bonuses are equitable, affordable, and show no favoritism can be a bit tricky. When providing bonuses, document:
The Reasoning - employee appreciation, retention, or as a reward for performance
The Basis - tenure, position, official performance review score, etc.
The Process - for example, bonuses are proposed by the Executive Pastor and approved by the Board
“But what if we can’t offer a bonus?”
Offer something else! Even if it’s just a resource!
Provide a consultation with the church’s retirement provider (Did you know contribution limits are being raised in 2023!?)
Roll out a new, inexpensive benefit like quarterly Personal Retreat Days, paid registration to an event, etc.
Ask board members to write personal notes of appreciation to each staff member
Plan and announce an upcoming staff appreciation event
Acknowledge that holidays aren’t always happy and get a pulse on your staff’s needs. Make sure they always have access to a list of resources and Christian mental health professionals you recommend.