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Also I don’t like to discuss bonuses or salaries with friends or family. Some people don’t get bonuses. However, I would probably tell people I got a vacation or a Wii vs. telling them I got XX amount.
I think a “bonus” is a “bonus” only if it’s truly unexpected…so if you grow to count on an annual amount, it can actually hurt you if it’s less than expected or doesn’t come at all.
I think the trip/free schwag is better. It gives you an experience you can talk about and you wouldn’t ordinarily have, and you can’t get in trouble by counting on it and then not getting it like you can with cash.
My company has both (sort of). We get annual performance bonuses in cash, but we also have an annual company trip…usually to Miami Beach. There is some “work” in the form of training meetings on the trip, but mostly it is company-paid-for dinners and drinks, so I count it as a bonus.
I actually left my company and was then recruited back; and when weighing whether or not to go back, the destination meetings made a much bigger impression than the cash bonuses.
I like getting free stuff too.
A gift would be more personal to me, even if it is less in monetary value as compared to hard cash; it would tell me that my employer put some thought into making sure I understood how appreciated I/team was.
Good luck in Vegas, win big!
I like the “Gift” bonuses. At my first REAL job, I racked up dvd players, televisions, video game systems, giftcards, and a whole bunch of other stuff. Those were the most definitely memorable, because most of it is still around or was gifted to someone. As much as I love the money bonuses, the “Gift” bonuses rock! I just didn’t like the “Gift” tax that I had to pay on them, lol.
Thanks, for your post on my blog. I’m going to bookmark your site.
I work for a company that is incredibly generous. Every other week I get a performance based bonus. Meeting minimum goals gets me some, exceeding those goals increases the $ in my pocket. In addition to that, they do a lot of contests for prizes, like Nintendo Wiis, vacations, cars and even pay your rent or mortgage for a year. They even cover the taxes on the prizes! These incentives keep me wanting to show up every day, and keep the people who want to succeed feeling like what they are doing will actually affect their pay.
I think that would definitely excite me more and leave a lasting impression. $5000 can be spent pretty quickly, but Vegas leaves memories. XBoxes can be played with all the time, etc.
I’d probably be happier with something we could put towards debt, given my goals. But I’d be more excited about something fun (especially since we don’t have much “fun” money).
I see your point, but I’ll take the $5,000 thanks.
Forgot to add, hope you enjoy Vegas, it’s the best.
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We get bonuses each year and the amount is usually a surprise. They have always said that bonuses are based on performance but in reality the last few years have just been everyone gets one and they usually try to increase or leave them flat. However this year they announced that they are going to a truly performance based bonuses so there will be some people who don’t get a bonus. I’ll believe it when I see it.
I would be ticked if they wasted money on “stuff” to give employees for free. If I want a Wii I can go buy it myself. I usually need the cash and it’s a welcome extra cash flow.
We can also get surprise spot bonuses which are great. I got one last year and it was super nice to get. I always prefer cash.
Trip bonuses are great because they reward employees publicly with recognition rather than privately with money. Plus they encourage team building and company loyalty. Though usually they’re given to top sales people – who also earn financial bonuses based on their performance.
Personally I would prefer the money at this point in my life. I don’t have a spouse (or even a boyfriend currently), so while I might enjoy a trip to Hawaii , I could really use the $5,000 and I’d probably enjoy it more.
Also, smaller random gifts would probably just frustrate me, unless they were really tailor designed to my interests. I personally couldn’t want a Wii less, for instance, and I’d be mildly insulted if my company thought they could throw that kind of stuff at me periodically in lieu of financial bonuses (unless I was in an industry where bonuses weren’t standard/expected anyway).
I prefer cash. Regarding Dave’s comment about bonuses having come to be expected, I think that bonuses function as compensation that companies feel they can cut more easily than salaries. Many employees would be quite unhappy with a salary cut and would likely quit immediately; this is less likely with a bonus reduction. However, since employees have become used to cash bonuses, perhaps, this flexibility has diminished–hence, the switch to non-monetary forms of compensation. Employees would likely be more understanding if the yearly company trip were canceled than if their bonuses with cut.
Stuff can be more meaningful than cash, but the big risk is that maybe you’ll get something you don’t like, such as a trip to Hawaii when you’d really prefer Alaska.
Assuming that a company can get more bang for the buck in a group purchase, a trip or something else may give you more value than a cash bonus. On the other hand, there are a lot of other things I would not spend my money on and having someone make that decision for me is typically not what I would want.
If it was an exact one-for-one trade in value, I would much rather have the money. I can then choose to purchase a week on the Vegas Strip with that money if that would make me or my wife happy. I can choose to purchase an X-box or Wii with that money. Or I can choose something not mandated by someone at the company. Perhaps I could apply the money toward our savings to go to Europe. Now THAT would make my wife happy.
Don’t forget you will have to pay income tax on the value of that bonus item, as well. Start saving now to pay tax on that pre-spent bonus. If you get cash, on the other hand, you can set the taxes aside and then spend the remainder on something fun.
I think having a trip, gifts, etc can be memorable and fun, but I still prefer the cold hard cash
.
At my work the thing that everyone loves getting are Wild Hockey tickets, which the boss sometimes gives out as a gift/bonus.
Every year the company gives a big christmas party as well, which is nice. The one problem is that you hear a lot of grumbling about, “i wonder how much this cost? I would have rather had the money than all this fancy food and drinks”.
So.. cash please!
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