CLA Connect Open Forum

year-end bonus

  • 1.  year-end bonus

    Posted 8 days ago
    Hello Every one
    Is there any formula to calculate the year-end bonus?
    Thanks

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    reza
    laundromat owner
    New York City
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  • 2.  RE: year-end bonus

    Posted 8 days ago
    Reza,

    You can use any formula that you're comfortable with.   I am using 4% of year to date net earnings plus a couple of small gifts.  That's per employee so the bonus will vary by pay rate and hours worked.  This works for me.

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    Larry Adamski
    Muskegon Laundromat
    Spring Lake MI
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  • 3.  RE: year-end bonus

    Posted 8 days ago
    There actually are formulas for this. But I have had the same woman close for nine years. Her pay gets rounded up to a hundred dollar bill along with another one just because.

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    Curt Harrington

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  • 4.  RE: year-end bonus

    Posted 8 days ago
    I do $500 for the one L-Mat manager that runs her WDF.  I pay $1,000 to our main construction maintenance contact and $250. ea to his son's who usually help him get us out from under whatever issue we have any day or night.  Money well spent.

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    Les Monthei
    Potential Investor
    Redding CA
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  • 5.  RE: year-end bonus

    Posted 7 days ago
    Godfather is very generous....

    He gives $5,000USD to each of 5 employees.
    thats $25,000
    PLUS a small gift to each from Sams when I go to get Vending supplies
    AND a Dinner for all..this year at Red Lobster.

    Now back to earth....everything above is true except instead of $5,000 cash to each employee, I will give $50 gift card, plus gift and Dinner.

    Now hang on....I remember when I worked for a fortune 500 company....guess how much they gave to each employee ???
    $10 grocery gift card. NO dinner Nothing else
    plus they reported it on income and we had to pay tax on it.

    And I dont even celebrate XMAS...
    .......HO HO HO .....

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    ORIGINAL GODFATHER
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  • 6.  RE: year-end bonus

    Posted 8 days ago
    .    If you're already being forced to pay "a living wage" by State regulations maybe your year end or Christmas bonus will be smaller.
         Years ago the Laundromat old-timers used to say "the bonus you get this year is that you'll have a job next year."
         Now that I'm an old-timer, I don't see it the same way. I provide a bonus that reflects the profit the Laundromat is making, but never over $500.00.
         Now those of you who have WDF and full time employees will probably feel a desire to pay more than me. Good for you. If you have it and you can afford to share it, then do it.

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    Larry Larsen
    Laundromat123.com
    Anaheim, CA
    Distributor - Insurance - Consulting
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  • 7.  RE: year-end bonus

    Posted 7 days ago
    I give a weeks pay and $50 gift cards for their kids.  Used to be Toys-R-us when they were still around but now its Walmart.  Oh, and huge-ass Christmas hams from Costco.  My father used to own a small hardware store and he gave turkeys, so I'm carrying on the tradition.

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    Paul Kludt
    Multi Store Owner
    Lake Worth Coin Laundry
    West Palm Bch FL
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  • 8.  RE: year-end bonus

    Posted 7 days ago
    I value my employees very much. I give a one weeks pay bonus check for Christmas, birthdays and whenever they need to take a week or so off. It's all on the books as well.

    Tom

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    Thomas Bright
    Owner
    Bright's Coin Wash
    Marengo Illinois
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  • 9.  RE: year-end bonus

    Posted 5 days ago
    We just purchased the business - it closed on December 1 - we had not considered the issue of bonuses when we were in the purchase process -otherwise would have negotiated that into the purchase price - We have since asked the old owners what they paid so we would have an idea of expectations... since we have only been employers for a couple of weeks... what is fair for an employee end of year bonus in this situation? Is it still customary to give a full bonus? I suspect the employees don't care about the new owner tenure - and would be expecting the full amount? Is it reasonable to give less in this situation? Keep going back and forth on this one... on one hand we have not had much to base performance - on the other hand... unhappy workers can damage the bottom line and it may not be worth the hit to save a few bucks... thoughts? What is fair?

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    Thom
    Store Owner/ Employee
    NJ
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  • 10.  RE: year-end bonus

    Posted 4 days ago
    You're right.  This is a tough one.  I'd be inclined to pay a full bonus if you think they're doing a good job and you expect them to stick with you.  My reasoning is that you're the one who didn't account for it during the purchase.  I'm pretty sure I know what the response will be but ask the prior owner if they'd fund part of it.  Sometimes people surprise you.   All this said, remember bonuses are disctretionary so if cash is very tight don't beat yourself up if you pay a reduced bonus.

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    Paul Kludt
    Store Owner/ Employee
    Lake Worth Coin Laundry
    West Palm Bch FL
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  • 11.  RE: year-end bonus

    Posted 4 days ago
    Edited by Thomas Healy 4 days ago
    Paul - you make a good point - it was my miss not the employees... its good food for thought... with just starting, money is of course tight, but perhaps that is not the big picture... happy employees make happy customers... err on the side of generous and take responsibility for not considering all the corners of the deal...I guess I need to consider it another tuition payment for the "school of hard knocks"...thanks

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    Thom
    Store Owner/ Employee
    NJ
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  • 12.  RE: year-end bonus

    Posted 4 days ago
    ​You have a golden opportunity here to make a statement about yourself as owners about how you value employees and what they can expect from you. Paying them a bonus right out of the gate says loudly "We value you and what you bring to our future success." It also shouts that you will treat them fairly and with respect. Regardless of what is fair, grab the opportunity to get employees loyal right from the start. Good luck!

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    Jay Johnson
    Owner
    Snohomish Laundry Company
    Snohomish, WA
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  • 13.  RE: year-end bonus

    Posted 3 days ago
    Wow... so much good advice here... thanks for all the thoughts... such an upbeat and on target message to start the employment correctly... I have been going back and forth but your on target with your focus and it resonates with me - I so appreciate everyone's time, experience and this sounding board... its an invaluable resource...

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    Thom
    Store Owner/ Employee
    NJ
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