As the holiday season looms, many employers may get the impression that their employees look at them as a Scrooge. Businesses often try to cut corners and save costs to have slightly higher profit margins by the end of the year. However, having too tight of a budge during the season of giving can make employees feel unrecognized and unappreciated. Learning how to better manage your cash flow during the final push of the year can help you improve efficiency while also keeping your employees happy.
End of Year Financial Struggles
The end of the year may be problematic for you for a number of reasons. Many businesses realize an uptick in sales during this time, which means that they have to invest more money in inventory, hiring seasonal help and making other purchases for the business. At the same time, they may be anticipating the upcoming tax season and may be making financial decisions to help decrease their tax liability. Employee bonuses come at a cost and are often left out for other options that will more directly help the business.
Why Employee Recognition Matters
While it may make fiscal sense to ignore employee bonuses, failing to recognize employees for their year of hard work can cause serious problems within the business. Employee recognition company Gallup found in a massive survey that only one in three employees reported being recognized in the last week. Furthermore, employees who felt unappreciated were twice as likely to say they would quit their job than others.
In contrast, recognizing employees can provide many benefits to your business. Employees who feel appreciated often feel like an integral part of the business. They will often work harder for the company that believes in them. Some of the benefits associated with employee recognition include:
- Lower employee turnover, decreasing the costs of training new employees
- Improved employee happiness, which boosts productivity and creativity
- Increased employee engagement
- Increased trust and customer liability
How to Manage Cashflow Needs
Meeting the demands of payroll can be difficult for many small businesses at the end of the year. Business owners can consider options to help them manage payroll during the holiday season to show they take this responsibility seriously. One way to accomplish this is to use payroll factoring. This process allows you to sell your accounts receivable in exchange for cash that you can use to manage payroll responsibilities. Many times, customers will not pay until after one or more payroll cycles. This process allows you to continue working hard to run your business without worrying about losing your employees.
Show You Are Not a Scrooge
Using innovative options like celebrating your employees and recognizing their hard work during the last year can help you show your employees that you appreciate them and are not a Scrooge. This recognition can help you start the new year with a fresh start and satisfied staff.