Let’s get it out of the way: I’m a Scrooge (that’s probably the kindest way to put it). Go ahead, call me names. I can take it. I’m a divorce lawyer, after all.

I don’t believe in bonuses for Christmas or Hanukkah or whatever holiday you or your employees choose to celebrate.

We take a few days off and close the office: I go that far, and I’m not angry about it (although I have to say that I don’t really like the revenue disruption).

But I don’t write checks, dress up like Santa Claus, and hand them out to our employees.

Why Don’t I Believe in Holiday Bonuses?

I think of a “bonus” as an extra. It’s something special done for special reasons, and it’s done at my discretion. It’s a gift.

It annoys me when I do something special for people and they almost immediately come to expect it.

The expectation that I’m going to give someone a gift just makes my head explode (which can be messy in more ways than one).

We experimented with bonuses years ago, and the following year the bonus was counted on. It went from “Thanks so much for the bonus” to “When do I get my bonus?” in the blink of an eye.

I responded by ending the practice of handing out bonuses (’cause, you know, I’m kind of an asshole).

What happened?

Nothing. No one kicked down the doors, took hostages, or started shooting.

It was a nonevent.

We’ve had lots of holidays since I stopped the bonuses, and the bonus question doesn’t come up. Well, I say it doesn’t come up: I can tell you that it doesn’t come up around me. Does it come up quietly between our employees? Probably so.

Has the non-bonus stopped us dead in our tracks? Nope. We’re still rolling along as well as ever.

Do We Ever Pay Bonuses?

Sure we do. We do special things in special situations, plus we have an annual award that involves some cash as well.

We pay bonuses when we have a good reason. We do it when someone deserves a bonus. However, we don’t have a habit—an expectation—of a particular payment at a particular time.

If you’re toying with the idea of paying holiday bonuses, I’d advise skipping it. If you’re already paying holiday bonuses and want to stop, I can tell you that it won’t be the end of the world.

Most firms have a pretty good system for paying the compensation that employees expect on a regular basis. It’s your regular payroll. If you’re not doing enough to compensate your team, then feel free to increase the amount.

However, don’t call it a bonus. It diminishes the term, and the gift becomes less special. A bonus should be special, no matter what time of the year it’s paid.