Searchlight Logo
special_image

    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
Holiday Bonus – entitlement or pay for performance
Features
December 5, 2014

Holiday Bonus – entitlement or pay for performance

by Suzanne Joachim Fri, Dec 5, 2014

I am sure that there would be a growing under swell of discontent, if as an HR professional, I recommended that businesses link employee bonuses to performance (individual and organisation), or eliminate them altogether but with a line of sight toward a fully developed compensation plan – underpinned by a well thought out compensation philosophy. Granted, this would require that businesses themselves have clearly defined strategic goals and targets with requisite systems and structures to capture same.{{more}}

While I recognize that holiday bonus (something of value), can be a powerful tool to motivate and engage a workforce, it can also be problematic, if it is not tied to measurable results instead of subjective opinions. The reason being, employees may not be encouraged to strive for higher levels of performance and development. Moreover, recipients treat the bonus as an entitlement and the additional gift/income (apart from base compensation) becomes a right.

The issue becomes even more complex when the “Millennial Factor” is added to the employment mix. This newest employee cohort is a growing proportion of the workforce with drastically different outlook from “Boomers”. They need to be managed and motivated differently than other generations. Research conducted by PWC has underscored that generous cash bonus, though important, may not convey the appropriate message or be as motivating as employers had hoped. Instead, the focus should be on creating positive work experiences, provide value recognition and real time performance feedback, since this cohort strives on being challenged and stretched. Evidently, therefore, organizational culture must be improved through positive psychology.

Interesting milestones in the history of the bonus and its evolution from gift to entitlement, as recounted by sociologists, provides background and context to this phenomenon. Sociologists have stated that at the turn of the 20th century, employers began substituting the traditional 19th century Christmas offering to employees (turkeys, watches, candies etc.) with a cash bonus. However, the custom of “remembering the workers” was treated by most employers as a discretionary gift. And, while some companies offered a bonus to every employee, other employers’ made the Christmas present contingent on efficiency record or employee’s disposition of the bonus, according to the Huffington Post. During the 1950s due to the fact that the bestowal of bonus was standardized and expected, Christmas bonus officially lost its status as gift. Today, the “benefactor-beneficiary component of the employer-employee relationship seems to be vanishing and is not so traditional anymore.”

The aforementioned conclusion was derived from a survey (452 national companies) conducted by Hewitt Associates of Lincolnshire- where 64 percent of companies today do not offer any type of holiday bonus. Of these organisations, 80 per cent cancelled their programmes between 1990 and 2000, citing that they now tie ALL employee rewards to company and individual performance.

Ideally, bonuses should be geared toward encouraging certain types of behaviour by rewarding it. Hence a blanket policy or a free floating bonus programme that is not linked to positive performance will create serious problems for businesses; reinforcing undesirable behaviours.

The following example underscores the point – a Customer Service Representative continually fails to meet “Top Drawer” customer service and is regularly reprimanded for poor customer service, as delineated by the company. However, each year receives a holiday bonus, invariably at the same rate as an excellent performer. It can be concluded therefore, that apart from sending mixed signals and creating potential legal implications, the company is not rewarding for increased customer satisfaction – the bedrock upon which competitive advantage is built.

The wrong kind of bonus can backfire and encourage employee resentment and hostility toward management. The questions that each employer has to ask: Should the company continue to routinely pass out substantial cash bonuses unrelated to performance? How does the company create a bonus programme that generates business, achieves strategic goals and encourages employee development? How does the company dismount the bonus horse (as it currently exists) once the ride has begun?

  • FacebookComments
  • ALSO IN THE NEWS
    Slater traduced on social media, attacked at home
    Front Page
    Slater traduced on social media, attacked at home
    Webmaster 
    May 8, 2026
    Acting head of the Agency for Public Information (API) Nadia Slater, who was beaten at her home during a period where she was being traduced on social...
    Nurse gains her PhD, sets her eyes on more
    Front Page
    Nurse gains her PhD, sets her eyes on more
    Webmaster 
    May 8, 2026
    Driven to achieve academically, Samantha Burnett- Harry, a lecturer at the Division of Nursing Education, who recently obtained a PhD in Nursing, stil...
    Gov’t proceeding with development bank despite caution from IMF
    Front Page
    Gov’t proceeding with development bank despite caution from IMF
    Webmaster 
    May 8, 2026
    Government plans to move forward with its general elections campaign promise of establishing a National Development Bank, stressing that if properly m...
    Lawyer hints at legal action against Commissioner
    Front Page
    Lawyer hints at legal action against Commissioner
    Webmaster 
    May 8, 2026
    Lawyer, Grant Connell has hinted at the possibility of pursuing legal action against Commissioner of Police (COP) Enville Williams regarding statement...
    North Leeward Carnival launch set for Saturday
    Front Page
    North Leeward Carnival launch set for Saturday
    Webmaster 
    May 8, 2026
    North Leeward kicks off its 2026 Carnival programme on Saturday, May 9 at the Chateaubelair Park from 1:00 p.m in the form of a Launch and Night of Cu...
    Vincentian Educator Among Top Three US Principals
    Front Page
    Vincentian Educator Among Top Three US Principals
    Webmaster 
    May 8, 2026
    A Vincentian educator who began her teaching career at the then Kingstown Methodist School has been recognised among the top middle school principals ...
    News
    Government to soon unveil ‘Love SVG’ initiative
    News
    Government to soon unveil ‘Love SVG’ initiative
    Webmaster 
    May 8, 2026
    Minister of Tourism, Civil Aviation, and Sustainable Development, Kishore Shallow, announced that a new initiative titled “Love SVG” will soon be impl...
    SVG Government to tackle  property tax non-payments
    News
    SVG Government to tackle property tax non-payments
    Webmaster 
    May 8, 2026
    Modernizing and reforming the tax system of St Vincent and the Grenadines (SVG) is one of the areas that the months-old Dr. Godwin Friday administrati...
    New man at the helm as Coordinator of Sports and Physical Activities
    News
    New man at the helm as Coordinator of Sports and Physical Activities
    Webmaster 
    May 8, 2026
    A new co-ordinator of sports and physical activities has been appointed in St Vincent and the Grenadines under the remit of the Ministry of Youth, Spo...
    Troumaca Bottom Beach targeted for recreational development
    From the Courts, News
    Troumaca Bottom Beach targeted for recreational development
    Webmaster 
    May 8, 2026
    The Troumaca Bottom Beach, located in North Leeward, is set to undergo major transformation as part of the World Bank funded “Unleashing the Blue Econ...
    Vincentian-based in  Holland pays fine, avoids jail on marijuana charges
    From the Courts, News
    Vincentian-based in Holland pays fine, avoids jail on marijuana charges
    Webmaster 
    May 8, 2026
    A senior citizen of Barrouallie who is based in the United Kingdom (UK), was fined for illegally possessing, trafficking and exporting cannabis after ...

    E-EDITION
    ePaper
    google_play
    app_store
    Subscribe Now
    • Interactive Media Ltd. • P.O. Box 152 • Kingstown • St. Vincent and the Grenadines • Phone: 784-456-1558 © Copyright Interactive Media Ltd.. All rights reserved.
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok