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.

 

What to know more about how to take care of your staff?