I do a combination. This year I came up with how much profit I want to distribute and put 2/3 of that fixed amount into profit sharing which gets divvied up by their earnings over the year. That’s a formula on the 401k plan I can’t alter it at will. Then the remaining 1/3 I give as cash bonus - but those tend to be the same for all employees. So in the end higher compensated employees do get more because of the higher profit sharing percentage - but the cash part makes it a little more even.

Giving what is kind might be subjective and might change based on what you CAN give that year.

Giving based on something tangible like how the previous quarter went, a percentage of their pay takes a lot of the past years comparison away.

​

But if its $200.00 every year and you budget for that each year throughout the year per employee, its really up to you.

It all depends on how the year has been and what their performance was like. I am kind but i don’t blindly give either. They need to work for it.

I have a tradition of $101 bonuses, its just a weird number but kind of cool too.

I have small gifts the first year, then stopped giving a year end bonus.

Instead, everyone got a $100 gift card for Thanksgiving.

Then, I decided not to tie a bonus to year end so I gave a monetary bonus usually $250 randomly between August and October to those I wanted to show appreciation toward. One exception, July of 2021 (Covid), everyone got a full weeks pay. My staff was incredible!

Periodically, throughout the year I would randomly hand $5 and $10 Dunkin gift cards.

Holiday period bonus - please stick to your current mode.

If you think you want to roll out performance based bonuses, then issue them at a different timeframe (not along with the year end / holidays time bonus).