What would you say a bonus is paid for?

[HappyAsEyeAm]

We have a nanny. She has been with us for three years. She is paid well (probably a fair bit more than average, but not completely top end), and we are kind and fair and thoughtful employers. She always gets 6 weeks a year paid holiday (2 more weeks than her contract says). She has had a 3.5% pay rise every year she has been with us. She does 3 days a week. We give generous birthday and Christmas gifts.

There is nothing about bonuses in her contract, so its completely discretionary. We have given a bonus for the last 2 years, and paid it in July/August. We have given an extra week's salary, and said that it was because she was so reliable (she hadn't taken any sick days), which for us was brilliant as we cannot work from home.

Bonus time is coming round again. I am in two minds about whether to pay a bonus (she will be getting her pay rise) this year, as she has had 9 working days off sick (which is three weeks) spread throughout the year for unrelated things, and we have paid all of those sick days in full (not SSP).

This has meant us having to find last minute childcare, juggle mine and DH's working days, take emergency holiday etc. I am not questionning whether she was sick or not. I 100% believe that she was unwell, and obviously, people do become unwell, and it was incredible that she wasn't unwell at all during the previous two years.

She will definitely have a pay rise (I think it will be 3 point something per cent again) and she is still performing well, and we are happy with her, and tell her this regularly. I am just unsure wheteher to pay any bonus this year, as the reason we have previously paid it is because she was so incredibly reliable. She is still reliable in the sense that she is punctual, the DC are never late for school, she is organised etc, but,as I said, I am in two minds about the bonus this year.

I wouldn't pay the bonus this time on the basis that a) its discretionary and b) your reason for giving it previously was having had no sick days and this time she's had 9 sick days. Obviously she can't help being ill but it was a bonus you gave for a reason and that reason hasn't happened this time. Also you've already paid her 9 days full pay for being off sick. I would leave it at that personally and not feel guilty about it. You sound kind and generous enough.

If you dont feel that a bonus is due then dont pay it. Due to the financial climate there will many employers who wont pay bonuses. The fact that you paid sick days in full is probably far more than the bonus value. It is discretionary and not contractual so no requirement to pay.

You sound like a fabulous employer

I think it is ok not to pay any bonus. Three weeks (equivilant) is a lot for you to have to cover. It is not the OPs fault she was sick but I still think it is ok not to pay her. I would let her know that you are still very happy with her work though.

Thanks for the replies so far. I am relieved to hear what you ay. I was half expecting to be told that reliability means more than not being unwell, which of course is true.

I work as a nanny and I get an annual bonus so maybe you'de like a nannies viewpoint. I started with my family 4 years ago, bonuses were never duscussed and came as a complete suprize when in my first year I was given 50 euroes for a holiday I was going on. My bonus this year was £250. As a nanny I never expected a bonus so to me it came as a wonderful shock to find that my employer is so greatful for the work I do, and so appreciative of the fact that I work hard and could easily get alternative work if I wished but refuse to do so, that she wished to reward me in some way. I would gladly have stayed with my current employer without the bonus as the job is rewarding on it's own merits but to be recognized in the way I am can not be put into words. I feel humbled to know that my efforts are noticed and appreciated and that has built in my loyalty, I have stayed with the family despite a drop in hours and thus wages because I know that I mean something to the whole family not just the child and that feeling can't be put into words. I will continue to stay with my family now until they no longer need me and when I do eventually go it will break my heart but I will know that my professionalism and hard work was noticed. I've had time off sick and holidays, that's part of being an employer I'm afraid. Bonuses are discretionary and just because I've had bonuses in the past it does not follow that I expecte them in the future, but keep in mind that your nanny may think you are punishing her for being ill. I would suggest if you decide not to give her a bonus, and I'm not suggesting you should feel obliged to do so, then at least tell her if you think she's done a good job. Sometimes words are a greater reward,

Hi there,

It seems like you don't feel right giving the give the bonus because you don't feel she's gone 'above and beyond' the call of doing a fantastic job with 100% attendance... equivalent of three weeks emergency childcare for you is a big deal, especially as you paid in full all the way through. You are far more considerate than I would have been if all incidents were unrelated (different for an ongoing / recurring problem).

If you have given happily before, but this year 'begrudge' giving it (not quite the right word but I can't think of the right one) then it's not warranted. It also doesn't give an incentive to not take as much (minor) sick in the next year.

To be honest, I think most employees are doing well to get even a pay rise in the current climate.

9 sick days or 3weeks off is a lot in one year esp if all odd days here and there and not say 6 days off in a row as had glandular fever /other infectious illness etc

• yes very fair you paid each one - dont know what your contract says about sick pay and not ssp which is a pathetic amount

a bonus is coz you are happy with someone services - yes she maybe couldnt help being ill depends what was wrong with her but understandable if you dont give one this year

a friend has written in her contract that if she isnt ill that year she gets a weeks extra pay so like a bonus

I see your point .

I'd be careful how you word it though. Assuming she has been genuinely ill enough to be off for 9 days this year then she's had a shit year health wise. It's a bit insult to injury imo to then not pay the bonus she's received before. If you can't afford it due to the emergency childcare then tell her that so she knows you're not being petty enough to punish her for ill health.

My back ground is management in hr. I'm siding with the view given by the nanny above somewhat. Here's why;

Sickness; thems the breaks. One year nothing. Another staff are sick all the time. People get ill. They just do. It's a massive pita but there is little that can be done. I assume you manage sickness? If not my better point is to ask here what others do on mn and then maybe renegotiate this point entirely seperately do all other discussions. 9 is a lot. Only you know why. I would feel if July/aug is your year end that you could as a stand alone conversation review the past year together incase better strategies can be found.

Bonus; my advice is keep this entirely seperate. It shouldn't be relational to basic job requirements eg attendance. I would suggest not giving at the same time as any conversation above. Bonus are for a job well done, the extra miles, the help and achievement with dcs over the course of a year. So, from what you say I feel she probably deserves one.

I get my view is possibly too office sounding, so if the above doesn't suit maybe compromise? Pick half the amount due now with thanks. Half at Xmas with no more sick. (Only assuming its not serious illness but cough/cold type).

Hope helps

Also agree with outraged above.

Maybe also don't do cash? Do a treat instead? Nails? A gift?

But she's been ill? That seems quite harsh to me. Do you want her coming in when sick?

If you feel that she wasn't genuinely sick - that's a different issue which you need to address up front. Not by withholding a bonus.

I think it's fair enough to not give a bonus if you've previously specified that the bonus is for 100% "attendance" and if you'd give the bonus for being there every (contracted) day regardless of the quality of performance on those days.

If a bonus is more about performing brilliantly while at work (which is what I'd give one for if it were me) and the employee is generally going above and beyond the remit of the job description, going that extra mile regularly, I would say a bonus should be given regardless of sick days.

If you don't give the full cash, maybe give a more modest gift in leiu of a bonus e.g. a token for a pamper session at a spa or something, to show your appreciation for her work.

The trouble with bonuses is that once people have had them for a couple of years, they almost see them as part of the parcel.

Three weeks of sickness in one year in dribs and drabs is a lot. Do you have any reason to believe that her commitment is waning, or has she just been very unfortunate?

If her overall attitude and work otherwise is good, then I'd go with a reduced bonus. I'd give cash though even if its £50 or £100 on the basis that the nanny has been used to getting a lump sum of cash at this time, to give her no money but a spa voucher or a bottle of wine just doesn't seem right.

She might be expecting a bonus and maybe budgeted for it, as she's had them in the past, so maybe a small token would be appropriate, to show her work is still appreciated. You can explain that you have had a lot of additional expense due to having to find emergency childcare cover this year, so do not have the funds left for a higher bonus? But then she will definitely expect one next year, if she's not off sick.

As a nanny but a maternity nurse role (work 24hrs so self employed), I do not get sick pay. But I have always been extremely prompt to work, never late and gone that extra mile. I have had 2 sick days this year. I would be a little hurt if I did not get the usual annual bonus due to sick days, because I would feel that when I had been at work I had gone above and beyond and that illness is part of life and all work situations.

Could you possibly give a different gift? One which would cost you less, but show you appreciated her efforts?

Maternitynanny31, there is a great deal of difference between 2 days sick in a year and 9 days.

I would never think to penalise anyone for 2 days sick, but for example in my office ( financial sector) if I had taken 9 days off sick as separate incidents, or indeed more than 3 instances in one calendar year I would either be quite far down the disciplinary absence procedure, or would already have been let go.

Having said that, our bonus is not directly related to attendance, however with that level of absence I'd be struggling to get a satisfactory rating and any lower does mean no bonus.

Bonuses are all related to how badly we want to retain that member of staff. Full cash bonus means she will be more or less guaranteed to stay, but will assume that her high level of absence is acceptable, small cash bonus shows that you respect the work you do but have had extra costs due to her absences. If she leaves then presumably you have got lots of back up options now, due to the repeated absence.