Does your law firm give out holiday bonuses to employees? Or are you actually giving gifts? This distinction matters more than you might think, and understanding it can transform how your employees perceive your generosity and their performance.
The most successful law firms approach bonuses with strategy and purpose. You’ve probably heard me talk about the importance of Key Performance Indicators (KPIs)—the metrics that reflect the work that drives your firm forward.
Basing bonuses on KPIs allows your employees to earn their own rewards. When you clearly define the targets and communicate what it takes to achieve them, employees know exactly what they’re working toward. Their bonus becomes a reflection of their efforts and accomplishments, which motivates them to perform at their best.
The Problem with Holiday Bonuses
Many firms hand out cash at the holidays and call it a “bonus,” but these bonuses often come with unintended consequences:
- Misaligned Expectations
Employees may believe bonuses are tied to performance, leading to dissatisfaction if they think their effort isn’t properly rewarded. Alternatively, they may think their bonus is too small based on their contributions, which can foster resentment. - Entitlement
Over time, holiday bonuses can feel less like a reward and more like an expectation. Employees may begin to view them as a guaranteed part of their compensation, losing the sense of appreciation and surprise. - Arbitrary Decisions
These bonuses are often discretionary, leaving employees guessing about how or why they were calculated. This approach can create confusion and even distrust.
The Better Way: Gifts That Make an Impact
If you want to reward your team during the holiday season, I recommend separating performance bonuses from holiday gifting. Performance-based bonuses should be tied to measurable KPIs. For holiday giving, focus on thoughtful gifts that show genuine appreciation for your employees as individuals.
Get to know your employees’ interests, hobbies, or even dream purchases. A meaningful gift—something they’d never buy for themselves because it feels too extravagant—can leave a lasting impression. It shows you’ve taken the time to understand and value them personally, not just professionally.
For example, a curated gift for someone passionate about cooking, a set of high-quality art supplies for a budding artist, or a luxury experience like a wine tasting or concert tickets could go a long way in creating a moment they’ll never forget.
Make the Most of Both Approaches
By combining KPI-based bonuses with meaningful holiday gifts, you can create a system that encourages excellence throughout the year while fostering goodwill and appreciation during the holiday season. This dual approach keeps your team motivated and engaged while ensuring your holiday gestures are well-received.
If you’d like to discuss KPIs, holiday gifting, or how to build a more successful law firm, I’d love to chat. Give me a call at 727-977-5568, and let’s create a strategy that works for your team.
The Power of Coaching
With over 34 years of legal practice and nearly as long managing my own firm with a diverse team, I’ve encountered many challenges and learned from them. I believe in the power of coaching in professional growth, just as top athletes do. If you’re navigating complex issues in your law firm, such as profitability, system efficiency, accountability, or adapting to remote workforces and unexpected changes, I’m here to assist. My experiences, both as a learner and a mentor, equip me to offer insights into refining your practice, from hiring strategies to handling unforeseen shifts in the industry.
Feel free to reach out to me at 727-977-5568 or 866-828-4287 for a conversation on any aspect of growing your law business. My journey has been enriched by mentorship, and I’m eager to share this wisdom to help your practice thrive.
Let’s Grow Our Business Together!
Generating new business is one of the best ways to ensure your business is growing in the right direction.
I’ve been practicing law for over 34 years. During that time I’ve had the privilege to both receive and give client referrals from fellow attorneys.
Client Referrals are one of the most powerful ways to grow your business. That’s why last year I decided to start my own Attorney Referral Partnership Program.
I know you’ve heard of other attorney referral programs but I’m offering something different:
- Including a monthly newsletter with business tips
- Ongoing disability education so you can qualify the client’s situation
- And soon, an individual portal that keeps you informed of your case referrals every step of the way
There’s no obligation so it’s a complete win-win for everyone.
If you have questions, don’t hesitate to call me at 866-828-4287.
GROW YOUR REVENUE. JOIN OUR REFERRAL PROGRAM.
