It’s that time of year again! The holidays, when small-business owners face myriad challenges – a slowdown and a bit of quiet, or a ramp up, a boom and a need for more workers. No matter how your company operates this time of year, one thing is constant. You have hardworking employees who might be expecting some time off and a bit of a bonus as a present. But the question remains in the minds of many business owners: What are the “rules” when it comes to holiday bonuses?

1. Have a holly, jolly holiday – but don’t forget to set expectations. It’s true that many businesses have been doing well while others are still recovering from the recent economic downturn. No matter what group your company falls in, it’s always wise to set expectations with your workers and to always live within your means. Sure, if you gave a bonus last year and the year before, you probably want to ensure consistency. However, if your business cannot afford bonuses this year, you need to be honest about it with yourself and your employees. Lean years come and go, but if your staff has been used to receiving a bonus and suddenly this year your business isn’t in the position to give one, be upfront about it as early as possible so your employees don’t bank on something that isn’t coming their way. And remember to be compassionate if you do have to deliver bad news. No one wants to feel like their boss is putting a big lump of coal in their proverbial stocking.

2. Don’t be a scrooge – assign bonus amounts carefully and fairly. If your company is in the position to give a holiday bonus, you must remember to be fair. Operate under the principle of “fair and equitable distribution.” What that means is that the bonus amounts you dole out should be consistent, uniform and delivered free of bias. It is important to make sure that no employee feels shortchanged if they compare their bonus against what a co-worker received.

3. Gather around the yule log – and make sure everyone is included. No one wants to feel left out, especially when they have been working hard to make sure your company is profitable and successful. Therefore, it’s important that everyone at your company be recognized in some way during the holiday season, no matter if they are temps, part-time or a company veteran of 15 years. While you may not be in the position to give a cash bonus to every single person who works at your company, make sure that you do something that recognizes the effort of all staff members and shake up the day-to-day calendar just a bit. Consider a great holiday lunch or a party after-hours where an employee can bring a guest, drink some eggnog and have some fun with co-workers. Little things still count this time of year – and your employees will appreciate the chance to be festive with the people they spend each day with.

4. Find some time for joy – and give it to your employees! If your company is unable to give a cash bonus this year, the next best thing that most employees enjoy is the gift of time – paid time off that is! Allowing your employees to enjoy some extra time off with friends and family around the holidays is something that any person enjoys. Moreover, having some extra downtime is something that will do wonders when it comes to improving morale, recharging batteries and ensuring your staff comes back after the holiday rested and ready to make the next year a stellar one. Additionally, paid time off, while it is an expense to any employer, is usually a minimal expense. Consider the fact that depending on when the holidays fall in a calendar week, you might be facing a quiet office anyway.

Always remember to consider the state of your business when figuring out holiday bonuses, and be as fair as possible. Realize that your employees work hard for you day in and day out through the year – come up with an equitable solution that will classify you as “nice” and keep you off the “naughty” list.

About the Author

Amanda E. Clark is the president and editor-in-chief of Grammar Chic Inc., a full-service professional writing company. She is a published ghostwriter and editor, and currently under contract with literary agencies in Malibu, Calif., and Dublin, Ireland.

Since founding Grammar Chic in 2008, Clark, along with her team of skilled professional writers, has offered expertise to clients in the creative,  business and academic fields. The company accepts a wide range of projects and often engages in content and social media marketing, drafts  resumes, press releases, Web content, marketing materials and ghostwritten creative pieces.

Contact Clark at www.grammarchic.net.