There are bonuses and then there are bonuses.
Something that is supposed to be reward for a job well done (either individually, or on a company level) has been perverted and twisted over the recent years, so much so that it is anything but that nowadays.
From employers who cut salaries to half or more (yes, I have seen this) the market rate and cover the difference with “bonus” payments, to employers who hand out bonuses seemingly irrationally, I have seen a lot.
Irrespective of how much someone hands out in bonus payments to employees, what I know for a fact is that most employers don’t make the most out of these “gifts.” How can they make more out of them? Simply: Hand out more bonuses.
I hope you haven’t gotten a heart attack if you are an employer and that you are still reading this.
Let me clarify: By “more” I don’t mean more money, but rather, more frequently. Try linking the bonus to a specific job well done as often as possible. Show what you appreciate as being above average work. They say that when you are training your pet you should try and give snacks immediately as they are following your instructions.
Contrary to that, imagine an athlete of your favorite team who’s suddenly overperforming. A common joke is that “his contract must be expiring soon” (and thus he’s seeking a renewal).
Ultimately, this is the fundamental flaw of bonuses as they are handed out at the moment: That they enhance performance only around the year end. The reason for this of course, is that most companies do not adequately document (or recognize the need to dedicate time to document) performance throughout the whole year. This makes many employees feeling as if whatever they do in the first half of the year won’t be remembered by anyone, so why bother giving extra anyway?
If you don’t want to hand out bonuses right after a job well done out of fear of creating a dependence precedent, that is fine too.
But the least you could do would be to hand out bonuses on a quarterly basis. Not hand out necessarily more than what you would at the end of the year. Just hand out money in a fairer way (and “fair” includes the timing element as well). And if it does end up costing you more, I can guarantee you this: With proper management, this will make you way more than what it will cost you.