To listen to my interview with Kevin Price about this subject:
One of your company perks should be a bonus based on company profitability. This bonus is given every year in February, and never at the Christmas holidays. You don’t want employees to think that it is a “Christmas Bonus” and should be expected, even in years where company profitability is not good.
One company had a phenomenal year last year. The bonuses were large. The owners had a great time sharing the profits with the employees. They had a company meeting to celebrate and distribute the checks.
Unbeknownst to the owners, one of the employees was so thrilled with the amount of his check that he bragged to all of his friends about it. How did he brag? He took a picture of it and put it on Facebook!
And yes, the picture showed the check amount, account number and bank routing number clearly visible on the picture.
The owners didn’t know anything about it until they got a call from their bank questioning some large withdrawals to an unusual location. They immediately told him that they didn’t authorize any withdrawals and the banker shut down their operating account. It was caught in time before too much damage was done.
Then they investigated and found out about the check on Facebook. The employee wasn’t trying to be malicious. He just didn’t understand the consequences of posting a check picture on Facebook.
How to do it right:
Direct deposit the bonus checks. Employees receive a receipt showing the deposit, just as they get for their regular paychecks.
And, email me (email@example.com) if you want my formula for calculating bonuses.