Situation:
As the holidays approached, our client faced a challenge: how best to reward their staff after a good, though not stellar, year. In previous years, they had consistently given bonuses equivalent to 2% of employees’ salaries. However, this year’s financial realities made that bonus unfeasible, raising concerns about how it might affect morale.
Solution:
Proxxy recognized that some employees might feel disappointed or confused if they didn’t receive the bonus they’d come to expect. We emphasized the importance of transparency, guiding the client to address the business’s realities openly to build trust, even when delivering difficult news.
We collaborated with the client to create an end-of-year presentation. This presentation detailed the company’s performance, openly acknowledging both successes and challenges. It also introduced plans for the coming year, including role-specific KPIs tied to performance and company goals, along with a long-term vision for growth. This approach set the stage for meaningful change and rallied the team around a shared path forward.
To address bonuses, we recommended a modest, uniform amount for all employees instead of a percentage of salary. This gesture reinforced the idea of unity and emphasized that every team member was equally valued. The presentation further highlighted this collective approach with the message, “We’re all in this together.”
Outcome:
The outcome was more than just delivering a bonus. Transparency and thoughtful planning created a renewed sense of trust and camaraderie within the team. Employees appreciated the honest communication and felt motivated by the clear vision for the company’s future.
Feedback gathered through an employee survey a month later revealed that staff felt optimistic about the company’s direction and valued the honest communication. Managers also reported improved morale and alignment across teams, with positive feedback during one-on-one conversations leading up to the holiday break.
By shifting the focus from monetary rewards to transparent leadership and shared goals, the client was able to strengthen team cohesion and build excitement for the year ahead.
