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Talent Tip #28: No Raise or Bonus? You’re a Mean One, Mr. Grinch!

December 13, 2011 by Claire Kittle

Grinch stole my raise and bonusWith the holiday season comes annual reviews. Therefore, I’ve been getting many calls lately about raises and bonuses. Some calls have come from employees wondering what to expect under the tree, and other calls have come from employers questioning what appropriate gifts will look like this season.

Well, let’s start with the obvious: thanks to the Grinch (aka the Government), the market still stinks. Donors continue to limit giving; thus, we have to keep our Santa belts tightened. Given that, here are some observations about what to expect:

  • If you’re an employee, you shouldn’t necessarily expect a raise or bonus. Many of my clients are making the choice to conserve money on raises and bonuses in order to keep the organization financially sound. If you get a raise, consider yourself fortunate, and remember to leave cookies and milk out for Santa as a thank you.
  • If your organization is in a position to give raises/bonuses for deserving employees, do it! Especially if it has been a while since your organization has given these kinds of perks, it’s a good idea to reward your top performers in some way. (I often hear from employees who are happy but feel underappreciated. Those are the same employees who will start looking for other jobs – let’s remember to make them feel loved.)
  • To put all of this into context, roughly 63% of nonprofits plan to increase staff salaries this year. For those, the average base salary increase is just under 3% (2.8%). Last year it was about 2.5%.
  • If your organization isn’t in a position to offer raises or bonuses, find a creative way to make your employees feel valued. Concert tickets, an extra day of vacation, a heart-felt note, or a dinner gathering at your house for staff won’t go unnoticed.

Even if the Grinch tries to steal your raise this holiday, remember the Whos in Whoville found a way to be happy anyway!

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