December is here!!! Employees are in high spirits and are expecting goodies from employers in form of bonuses or 13th-month salaries. Will hopes be dashed? Will majority smile to the bank or, at best, think good of their employers?
The 13th-month salary is a payment that an employer pays to employees according to different terms of law or contract of employment. The payment, which usually takes place around December, is traditionally called Christmas bonus and the salary may be equivalent to one full month salary.
In some countries, there are no statutory requirements for 13th-month salary payments. However, bonuses are common at the discretion of the employer.
Are you an employer reading this post? Do you plan paying 13-month salary or giving bonuses to your employees? Below are 10 reasons you should actually consider paying the 13th-month salary or giving a bonus.
Everyone feels good when appreciated and a 13-month salary is a nail-on-the-head way of saying ‘Thank you’ for your work for the year. Some employees have turned down offers because of brand loyalty and belief in the vision of the company. This is a good time and way to appreciate your greatest asset.
2. Your Competitors are doing it.
The labour market is a battle of who secures the best talent because good talent equals a strong business. Businesses place the 13th-month salary or bonuses as one of the benefits an employee will enjoy once they join their workforce. If you want the best hands, then attract the best minds.
3. Boost Brand Loyalty
Having a high churn rate is detrimental to any business. You need employees that will stay a considerable time with the company and the 13th-month is one of the ways any company can boost brand loyalty.
4. Brand Trust
Do your employees trust you? How can they be sure you have them at heart and they are your number one asset? Boost trust with the 13th month bonus and see how commitment and trust in the leadership and vision of the company would solidify
5. More to Spend
December appears to be the month of discounts and giveaway but trust me, spendings are more as it is the end of the year and it is vacation time and a time for family and loved ones to bond and visit home. More cash is spent on transportation and partying, the 13th month bonus could just be a helper here
6. January is like 60 Days
For most firms, the December salary is paid quite early and that means there could be a danger of having nothing for upkeep in January. January is quite long. The length of time from the last salary (December) to the next (January) looks like 90 days but with the 13th month salary, your employees have more to spend… and save!
7. Prepares the mind-set for January
To whom much is given, little is never expected. The 13th-month salary and bonus prepares the employee and reminds them of how to repay the kind – December – gesture by prepping their mind-set for work in January.
8. Attract Better Talent
Apart from the salary for work, employee compensation goes a long way in attracting quality talent as it puts more money in the pocket. The 13th-month salary could be the magnet that tracts the best talent for your company
9. They’ll spread the word
In December 2019, when Softcom Nigeria Limited flew all her employees to Dubai for a retreat, they never put out an official communique but the employees spread the word on social media and it became a buzz. That perk along and the word put out there increased brand presence for the company
10. You will be happy
As an employer, what more joy can you have seeing appreciative smiles on the faces of your employees? What more can be satisfying and fulfilling. Spending the end of the year with the feeling that your employees are happy will surely make you happy.
So, are you paying/expecting a 13th-month salary? Please take this 10 seconds survey