It is finally December, and employees are fired up and ready for their employers to reward them with bonuses or the 13th-month salary.
A 13th-month salary is an additional payment that normally amounts to one month’s base pay. It can differ from nation to nation and is paid on top of your employee’s yearly income.
The compensation paid by employers to workers in compliance with specific contractual clauses or regulatory requirements is the 13th-month salary. Traditionally, it is known as the “Christmas bonus” and is given out in December. It should be worth up to a whole month’s salary.
Some companies do not give 13th-month compensation. However, incentives are often given out at the employer’s choice.
Below are 10 reasons employers should pay the bonus or the 13th month’s salary:
1. Gratitude towards employees
Giving a 13th-month paycheck as a token of appreciation is a suitable way to thank employees for their hard work over the year. Some employees have turned down job offers because they believe in the organization’s objective and are loyal to the company. This is the perfect time and place to express your thanks for your most prized asset.
Since competent people make up strong businesses, the labor market is a contest to see who can keep the most talented people. Employers view the 13th-month compensation or bonuses as one of the benefits that recently hired employees will enjoy. If you want the most experienced hands, draw in the sharpest minds.
3. Increase loyalty
For every firm, a high staff turnover rate is bad news. You need workers who can commit to the company for a long time. A company can boost brand loyalty by providing a 13th-month salary.
Have you earned the trust of your staff? Since they are your most precious resource, how can they believe your thoughts and concerns are with them? Increase their confidence by taking benefit of the 13th-month incentive and watch as dedication and faith in the organization’s leadership and goals become more steadfast.
5. Higher spending
December may seem like the month of presents and sales, but spending increases dramatically as the year ends and friends and family head home for the holidays. Employees with children will also need to spend a lot since the school semester starts on January. So, the 13th-month benefit can be advantageous for the employees.
6. January is a long month
There’s a chance they won’t have any money for upkeep in January because most businesses pay their December salaries somewhat early. The final paycheck in December and the first of January are usually separated for too long. With the 13th-month salary, your employees have a month’s wages to spend and save.
Little is ever expected in return when plenty is given. With the help of their bonus and 13th month’s paycheck, the employee is ready and reminded of how to repay the December kindness by getting their mindset for work in January.
8. Attract great talent
Employee pay, which provides higher expenses in addition to labor compensation, substantially impacts recruiting top talent. The inducement that draws elite talent to your company can be the 13th-month compensation.
A 13-month salary is rare. You do not have to announce the perks that you offer officially. But as soon as the words got out to the public, it would spark excitement among the hopeful job seekers. The benefit and the publicity it brought improved the company’s brand awareness.
10. Creates a positive culture
Nothing makes an employer happier than seeing happy faces when a worker expresses gratitude. Is there anything more rewarding and wonderful than this? It will surely cheer you up to hear that your staff members are happy as the year draws closer.
