MightyPen Posted October 27, 2015 Share Posted October 27, 2015 (edited) Here's my situation... I'm getting a large end-of-month bonus next week based on my performance. The bonus % was negotiated when I signed my contract at the start of my employment. My team consists of myself, two full-time support people and a few other people who jump in and help as needed. I am most concerned about my two full-time people. Our office had a really good October revenue-wise, but I'm not sure if the boss plans to give my support people any type of bonus. Should I share my bonus with them? What issues would you consider in answering that questions? If you arrive at "yes," how much would you consider sharing? Edited October 27, 2015 by MightyPen Link to post Share on other sites
carhill Posted October 27, 2015 Share Posted October 27, 2015 If you're a team leader, a tidbit I've learned from successful business colleagues and something I practice myself. Learn the power of hundred dollar bills. Not the negotiated and contracted ones but rather the spontaneous with a handshake or a hug ones. The 'we wouldn't have been the success we are without your presence' ones. See what happens. Adjust the number for your profession. We generally gauge them on our charge out, in our case about 100-125 per hour, but we're blue collar. Hence, my usual was one or two at various high points where continued productivity on a certain path was something I wanted to enable. Also, listen to the team and get to know their personal milieu and tailor spontaneous rewards to that milieu. Sometimes money isn't the language which best motivates them. Everyone is different. 1 Link to post Share on other sites
Popsicle Posted October 27, 2015 Share Posted October 27, 2015 Speak to the boss about it diplomatically. He needs some pressure. 1 Link to post Share on other sites
RecentChange Posted October 27, 2015 Share Posted October 27, 2015 I mentioned before that I also work in a small law office. Few thoughts: Because we are in law, we are concerned to following the law to a T. Would these be personal gifts or could they be thought of as "under the table" compensation? How are you going to decide who gets what amounts etc, could be sticky. In my experience support staff (in our area) gets a commission percentage off the deals they work on. It's obviously a smaller percent, but they do get a monthly bonus. "Thank yous" for work on a project are usually given in the way of a bottle of wine, treated to a fine meal etc. Link to post Share on other sites
Maggie4 Posted October 27, 2015 Share Posted October 27, 2015 I would ask the boss if my team is getting anything, before making my decision on how much to give. If it's a lot, and you start doing it, it can become frequent and they start to expect it. Besides, your bonus and their bonus have different meaning. Your bonus is part of your total compensation package. The bonus you give your team is your show of appreciation. So in that sense, it is not really "sharing a bonus". 1 Link to post Share on other sites
Got it Posted October 27, 2015 Share Posted October 27, 2015 I would speak to the owner about it and ask him directly if they are getting any bonus. Did they have offer letters that stated any bonus? Have they received bonuses in the past? If you aren't the direct manager who has the ability to make pay/total rewards decisions then it is really outside of your control other than recommending. I would worry about you giving something that would look like it comes from the employer in case it is claimed you are setting precedence. If you were to give something, maybe a gift card from you to them, or something like that. FYI, if it comes from the employer, anything of monetary value, over 75.00, should be reflected on the W-2 as taxable income. 1 Link to post Share on other sites
carhill Posted October 27, 2015 Share Posted October 27, 2015 Anecdote from the annals..... One of our loan officers, a real productive one, had a parent get ill and, lacking other options, she took her parent in and was caring for her at home. We could see she was frazzled but she was still there every day and those loan packages were still put together in precise detail and on our table for each meeting. I thought, heck, what can we do to help out? Heh, I called Merry-Maid and set up an initial cleaning appointment and told them if she liked their work, we'd pay for a month of it, twice a week. She did, and kept them on for a few months after at her expense until the pressures lessened. All she knew was the institution had paid for it because that's what I told them to tell her. In fact it was the volunteers on loan committee who paid for it. Yup, none of us were paid. We worked for free. However, all of us were business people so we knew the value of leadership and motivation and, most of all, the value of a good employee. That particular one was still working there a number of years later when I ended my participation. OP, I'll be honest with you. I've never received a bonus from anyone, ever, in life, so I've never been faced with the decision whether to share or not. Anytime I've given people things or money, it's been off the sweat of my brow in the shop or in the field. So take my advice with a grain of salt. I haven't been an employee in nearly three decades so don't really know what it's like to carve out my share with a legal contract with an employer and then think about giving some of that to fellow employees. Maybe that's a completely erroneous tactic. I tend to look at things from the perspective of a business owner or adviser. One option to consider is to not talk at all about money with the boss, presuming the boss is a principal who could turn loose some rewards for people, but rather focus on performance and how your key people were instrumental in that performance. Then leave it at that. The boss shows who they are by their actions. Then, take that information in and move forward. 1 Link to post Share on other sites
Author MightyPen Posted October 27, 2015 Author Share Posted October 27, 2015 (edited) Really good feedback thus far. Yep, I know I need to talk to the bossman. I don't really feel comfortable asking him about other employees' compensation, but I'll phrase it as generally as possible like, "Hey you saw my numbers. We had an awesome month! X and Y are really killing it for me! Would the office be able to swing them a bonus?" As far as the logistics of sharing, I'd be (ethically) comfortable with talking to payroll and just re-routing part of my bonus to them, so everyone just pays taxes on the amount they get and it's on the up and up. Alternatively, I might go the gift card route, but I'd want to make sure it was pretty much as good as cash - maybe Target or Kroger or something. Heck, maybe just a prepaid Visa card would be better. And I would consider just giving them a handshake and $100 bill but I really planned to give them more than that. Edited October 27, 2015 by MightyPen Link to post Share on other sites
Got it Posted October 27, 2015 Share Posted October 27, 2015 Really good feedback thus far. Yep, I know I need to talk to the bossman. I don't really feel comfortable asking him about other employees' compensation, but I'll phrase it as generally as possible like, "Hey you saw my numbers. We had an awesome month! X and Y are really killing it for me! Would the office be able to swing them a bonus?" As far as the logistics of sharing, I'd be (ethically) comfortable with talking to payroll and just re-routing part of my bonus to them, so everyone just pays taxes on the amount they get and it's on the up and up. Alternatively, I might go the gift card route, but I'd want to make sure it was pretty much as good as cash - maybe Target or Kroger or something. Heck, maybe just a prepaid Visa card would be better. And I would consider just giving them a handshake and $100 bill but I really planned to give them more than that. Don't run through payroll without your owners approval, just a good CYA. If you want to really help them then push to get a bonus program written in for them. I budget for all of my people to get a bonus of varying amounts based on position. Some have true bonus programs, some it is just year end/if the company did well. Link to post Share on other sites
thefooloftheyear Posted October 27, 2015 Share Posted October 27, 2015 Depending on how well everyone gets along, I'd take them all out to a nice dinner and pick up the tab.... My guys always like it when I do that...We have a blast and they seem energized following it...Sometimes a little bonding in a casual environment is better than cash....Lets face it, i'm not knocking it, but a hundred bucks isn't really anything anymore... I guarantee they'll remember the dinner/evening more than the hundred bucks and it'll probably take a little less of a bite out of the bonus... TFY Link to post Share on other sites
Author MightyPen Posted October 27, 2015 Author Share Posted October 27, 2015 Depending on how well everyone gets along, I'd take them all out to a nice dinner and pick up the tab.... My guys always like it when I do that...We have a blast and they seem energized following it...Sometimes a little bonding in a casual environment is better than cash....Lets face it, i'm not knocking it, but a hundred bucks isn't really anything anymore... I guarantee they'll remember the dinner/evening more than the hundred bucks and it'll probably take a little less of a bite out of the bonus... TFY I actually want to give them each $750.00. That really won't put much of a dent in my bonus but I figured it was significant to enough to let them know I value their efforts. 1 Link to post Share on other sites
S2B Posted October 27, 2015 Share Posted October 27, 2015 I actually want to give them each $750.00. That really won't put much of a dent in my bonus but I figured it was significant to enough to let them know I value their efforts. That's a nice gesture! If at all possible give cash. That way they don't have to pay taxes on it as income. Even if it's less - some people benefit more by not showing it to the tax man. Link to post Share on other sites
Author MightyPen Posted October 27, 2015 Author Share Posted October 27, 2015 That's a nice gesture! If at all possible give cash. That way they don't have to pay taxes on it as income. Even if it's less - some people benefit more by not showing it to the tax man. One of them is the lady (sometimes) wearing torn jeans. Maybe I should get her a Macys gift card instead of cash?? I'm sure she'd love that. 1 Link to post Share on other sites
basil67 Posted October 27, 2015 Share Posted October 27, 2015 You sound like a great manager. But torn jeans are a thing. Not an 'office thing' IMO, but a fashion statement nonetheless. Treat her as you would the male workers. 1 Link to post Share on other sites
S2B Posted October 27, 2015 Share Posted October 27, 2015 One of them is the lady (sometimes) wearing torn jeans. Maybe I should get her a Macys gift card instead of cash?? I'm sure she'd love that. No gift card that determines or confines how it is spent. Some folks dress like that because they prefer it. Link to post Share on other sites
ufo8mycat Posted October 27, 2015 Share Posted October 27, 2015 I think it is a very generous offer but I don't think there is any expectation that a personal bonus is shared. In my experience one of the partners usually takes the team out for a great meal, out on the boat or some sort of really expensive fun thing... during work time! Link to post Share on other sites
edgygirl Posted October 27, 2015 Share Posted October 27, 2015 I feel it sets a weird precedent that they will be expecting all the time and be frustrated if they stop receiving it. It might come back to haunt you. Also, it doesn't seem like you're managing the bonuses in the company, so it sounds somewhat out of usual procedure bordering on the unethical. Why would an employee have to share their bonus determined by their contract with their team? Never heard of that. As someone mentioned, I do remember fancy cool dinners where partners took us out, they were the best bonding days. I hardly remember cash bonuses I got, they went to my bank account and... whatever. Link to post Share on other sites
applej4 Posted October 28, 2015 Share Posted October 28, 2015 Do you share your paycheck with them? Does your boss share his/her bonus with YOU? Link to post Share on other sites
clia Posted October 28, 2015 Share Posted October 28, 2015 I think it's a very nice gesture and people really appreciate it. It was very common in my old law firm for attorneys to do this, and I did it nearly every year for my direct support staff. We always did it through HR. Link to post Share on other sites
Survivor12 Posted October 28, 2015 Share Posted October 28, 2015 Just a few things to consider... Dinner or a modest gift would be appropriate for showing your appreciation, but a large one could actually bring about some resentment toward the company (questioning why you are paid so much more than them) or you (perceiving your gift as charity or boasting) & could backfire. Do the others report to you directly? If not, be mindful that a "too large" gift may come off as being more condescending than appreciative. There is a fine line between being generous and flaunting your financial status. Are the other employees already aware of & the size of your bonus? If not, I would think twice about telling them. Perhaps a series of smaller gifts or group lunches/dinners throughout the year would draw less attention but still show appreciation. As someone else already said, whatever you choose to give should be given equally & without strings, not based on what you think they need or your personal preferences (i.e. Macy's gift card). Consider the size of the gift relative to their income, not yours. For someone making $20K/yr., $100 would mean more than it would to someone making $100K. If there is a wide range in incomes, I would suggest a non-monetary gift to show your appreciation. Like I said, just some things to consider. Congratulations on your bonus! 1 Link to post Share on other sites
Author MightyPen Posted October 28, 2015 Author Share Posted October 28, 2015 More great feedback, Now I'm going back and forth in my head, because I don't want it to backfire, and I don't want it to become a regular expectation. I guess if I gave them each $750, they might compare notes and figure out that I "gave away $1500" and then start wondering, "How much did he get anyway???" I talked to the boss about potential bonuses for the staff yesterday afternoon and he was like, "Yeah I'll have to look at the numbers," which I totally understand. I also understand that we're getting close to Christmas bonus time as well, and I don't know the specifics of our cash flow situation. My main motivation is to incentivize them to keep killing it, because they do all my grunt work - the work that has to be done before I can seal the deals. When they kill it, I kill it, and when I kill it, I get bonuses, so I want to keep the momentum going. Link to post Share on other sites
GunslingerRoland Posted October 28, 2015 Share Posted October 28, 2015 I don't know, giving that much cold hard cash to your coworkers out of your own bonus is very different. It may be insulting to some people even. Unless you really believe that their work is the reason you got your bonus I think you need to be a little more selfish in this case (as bad as that sounds). Link to post Share on other sites
Popsicle Posted October 28, 2015 Share Posted October 28, 2015 Tell your boss all that stuff to help him "get it", and just make sure you all keep in line with the tax laws. 1 Link to post Share on other sites
Art_Critic Posted October 28, 2015 Share Posted October 28, 2015 MP, The bonus is yours.. you are the employee paying taxes on it and your boss said he will look at the numbers, which to me means they are not getting a bonus. However, if you wanted to spread the wealth some remember that you are NOT giving them a BONUS as that is what their employer would give them.. you are giving them a token of gratitude, a GIFT for their hard work for performing for you. To me giving them cash is kinda tacky and seems less like a token or gift and more like a bonus.. Give them a Gift Card (VISA) for like $100.00.. or maybe $200.00 if you are feeling generous.. any more IMO would be over kill and look like you are making up for a poor employer at your expense and trying to buy them. Remember they are not paying taxes on it, you paid the tax on the money they will be gifted. If they don't like a $200.00 gift then they aren't the kind of people who would perform for you in the long run anyhow... Congrats... Link to post Share on other sites
Author MightyPen Posted November 3, 2015 Author Share Posted November 3, 2015 Just giving a small update. I calculated my bonus yesterday and emailed it to office manager to confirm and send to payroll. Yes, I am paying taxes on all of it of course. I am a stickler when it comes to taxes. I'm giving each of them $200 (probably Visa cards - I need to hit Kroger today). Our numbers will be good for November as well, so I continue to update my boss on my team's stats to encourage him to give them bonuses directly. 2 Link to post Share on other sites
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