Business Education

I can’t Afford to give My Employees Christmas Bonuses this Year, What can I Do Instead?

This year, a good number of businesses will continue to face the very unenviable position of not being able to afford employees’ holiday bonuses. For a sizable percentage of companies, it became an inescapable reality last year, obviously, due to the large-scale shutdowns across the country and overseas. While many businesses have recovered and regained a sense of normalcy, a significant portion still struggle. This means having to make hard choices when it comes to expenses that are not part of the business’s day-to-day operations. Fortunately, there are some alternatives to giving employees cash.

Turn a Negative Situation into a Positive One

When the economy or an industry takes a downturn, most entrepreneurs will take a good hard look at their books to determine exactly where they stand. Some make the mistake of cutting back too deeply, becoming too lean to fully operate, and only prolonging a bad set of circumstances. However, others embrace it as an opportunity to eliminate redundancies, reduce extra expenses, and put their resources where they most matter.

A holiday bonus is a traditional gift given to employees by employers each year as a big ‘thank you.’ Many managers and business owners want to give their hard-working employees a bonus at the end of the year. The unfortunate truth is that many cannot afford it in today’s economy. As a result, many companies have had to get creative by offering their employees something enticing that is not a cash bonus. —Optimum Employer Solutions

The latter strategy is obviously more effective because it makes the company more efficient. This type of audit should be done regularly since it’s so very easy to become blissfully ignorant of what’s actually happening with the business’ finances. Company owners who enjoy a nice regular profit line are typically the ones blindsided most when things change and go in the wrong direction. Regardless, if you really can’t afford holiday bonuses this year, be honest and upfront with your team members. This way, they will understand the gravity of the situation and be grateful for whatever you decide on as a substitute.

Employee Bonus Alternatives

Before you panic, be sure to know the exact numbers. The situation might not be as dire as you think. Although, if it isn’t truly feasible to give your employees holiday bonuses this year, here are some great alternatives:

Extra paid time off. What’s wonderful about this alternative is that employees will appreciate this just as much as bonuses. People like extra time off when they don’t have to forfeit anything and this will not cost the business anything directly out of pocket.
Incremental pay raises. Another option is to schedule incremental pay raises for every quarter over the next year. If possible, start this in the immediate future and your employees will feel appreciated and valued.
Better benefit packages. Yet another alternative to giving out bonuses is to give your employees better benefits which they can always use. Look into better health insurance, dental insurance, and other benefits

What other employee bonus alternatives would you suggest? Please take a moment to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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The Essential Blueprint for Small Businesses Caught in Trade Wars

September 18, 2025 No Comments

Ever feel like global economics are playing a game of chess with your small business as the pawn? Trade wars can certainly make it feel that way. But don’t fret. Below is an essential blueprint to not just survive, but thrive, even when tariffs are flying and supply chains are strained. So, let’s get strategic and make these challenges work for you.

Key Reasons Businesses Experience High Employee Turnover

November 18, 2021 No Comments

High employee turnover is practically normal in some industries. These are mostly entry-level positions, where people only stay for a short time. But, since the global pandemic outbreak and shutdowns, followed by the reopenings, more and more companies have experienced unusual amounts of employee turnover. Although it’s easy to simply blame this abnormality as the source of the problem, there are sometimes underlying issues. It’s just that these remarkably unusual sets of circumstances have finally brought those festering problems to the surface. High Employee Turnover Usually Underscores Underlying Issues High employee turnover may in fact highlight problems within the workplace and not be a reflection of the departing team members themselves. Put another way, it’s not the employees’ faults necessarily, but something in the way the business is run. This isn’t to say it’s always the corporation’s fault, as mentioned above, some industries experience high rates of employee turnover regularly. However, if you’re running a business that does not hire nearly exclusive entry-level workers, and people are quitting after short periods of time, there are probably some good reasons. Companies often thrive based on the talent provided by their employees. Yet, if a company is faced with frequent turnovers, the efficiency and effectiveness of business operations could suffer. Similarly, those companies that maintain a consistent workforce may be able to grow as a result of their employee base performing consistently. Understanding the causes and effects of turnover can help your company develop strategies and policies to increase the odds of keeping the staff members you value. —Houston Chronicle Small Business One of the most difficult things for owners and entrepreneurs alike to see and understand is where their businesses are falling short when it comes to their employees. Ensuring that employees are well taken care of is just as important as serving customers to the best of your abilities. Since employees are the very lifeblood of your business, they should not only be compensated fairly but treated as vital components of your company. 3 Key Reasons Businesses Experience High Employee Turnover Fortunately, high employee turnover usually comes as a result of at least one of three reasons. If any of these are persistent in your business, it’s probably what’s driving your employees to quit after very short tenures. Here are the most common reasons that businesses experience high employee turnover: Compensation. This is the most obvious and is definitely among the top reasons employees don’t stay with their companies. Unfortunately, this doesn’t just apply to hourly workers, but salaried personnel as well. Paying at the bottom of the industry will practically guarantee that new hires become disaffected in short amounts of time and abruptly quit. Paying at the mid to high level of the industry is one of the best ways to avoid this problem, but that might not be applicable to all situations. Businesses already paying well might also consider little perks and incentives outside of pay, such as extra time off, gifts for meeting goals, and other types of incentives. Management. There’s just about nothing worse than bad management. Even people who are compensated very well will not tolerate bad managers for very long. If management does not treat their staff with the respect and professional courtesy they deserve, individuals will simply find other places to go. Bad management not only drives people to leave but also causes them to perform poorly while they’re at the company. So, take a deep look at the management’s style and execution and make changes if necessary. Culture. Company or corporate culture is also a very important factor in employees staying put. Just like bad management, individuals will not tolerate a toxic culture for very long. Even if management treats them well and they are compensated near or at the top of the industry, toxic culture will eventually erode their loyalty and they will leave the company. Although this is one of the most difficult factors to identify, it is essential that businesses foster a positive company culture in order to get the highest level of camaraderie and productivity from employees. What other suggestions do you have for dealing with high employee turnover? Please take a moment to share your personal experiences and relevant thoughts — it could greatly benefit someone else! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Here are the 3 Biggest Self-Imposed Entrepreneurial Roadblocks

June 27, 2018 No Comments

More often than not, the person in the mirror is the individual who is most to blame for your problems. Usually, lack of success isn’t due to external circumstances or a run of bad luck. Poor decisions are typically the culprit. And, these mostly come from the failure to recognize certain self-imposed roadblocks. How Modern Culture undermines Businesses Now, this doesn’t mean there are never any real externalities which play a significant role. Just take a quick look at modern culture. Practically everything is now on-demand. We live at a time where immediate gratification is normal. But, that’s a dangerous situation. Success is what every business person and entrepreneur desires from the very core of their being. They have a dream, a genius idea and an initial excitement to make it happen. Having a great idea and building a sustainable empire, however, are very different things and many, if not most, fail. To rank among those who succeed you must master certain disciplines to avoid sabotaging your own success. —Entrepreneur.com You first need to instill self-discipline and realize it’s more advantageous to accomplish your biggest goals in small steps. An incremental approach will cause you to think through scenarios and have a more clear understanding. However, just taking it step-by-step might not be enough. 3 Biggest Self-Imposed Entrepreneurial Roadblocks Let’s get back to how too many entrepreneurs sabotage themselves. They put up roadblocks which keep them from realizing their full potential. So, here’s the three most common self-imposed roadblocks you need to recognize and deal with: Not recognizing futility for what it is. If you’ve ever seen the movie “Wargames,” then you know the scene when Dr. Stephen Falken uses the example of tic-tac-toe to illustrate the importance of recognizing futility. But, that’s the exact opposite of what we hear time and time again. You’re not supposed to give up. Keep fighting and find a way. However, there are times when it’s just futile and you can’t win. Remember Einstein said repeating the same thing and expecting different results is the definition of insanity. Seriously doubting your own abilities. This is perhaps the most common self-imposed roadblock. It’s natural to have reservations, even to feel fear and/or doubt. Although, too much doubt is a poison pill. It’s simply paralyzing and ultimately self-defeating to give into unrealistic doubts. Saying “Yes” when “No” is appropriate. We’ve all heard the advice to give things away for free or at little cost. Additionally, to always help others. But, saying “Yes,” can easily obstruct your ability to grow your business. After all, you need to focus on your own business to build it up before you can actually be in a position to help others do the same with their companies. What other self-imposed roadblocks have you overcome? How do you move past your own limitations? Please share your thoughts by commenting and joining the conversation! Interested in learning more about business? Then just visit Waters Business Consulting Group.