By Benecia Beyer
Fewer small business owners will reward their staff this holiday season with bonuses, but more will give time off, according to The Open from American Express Small Business Monitor, a semi-annual survey of small business owners. And, in the spirit of the season, there is a notable increase in the number of small business owners who will ask their employees to volunteer as a group.
This holiday season, only 47% of small business owners say they will hand out bonuses compared to 54% in 2005. By contrast, 55% of owners surveyed plan to give the gift of time off, up 8% from last year. Interestingly, one third of business owners (36%) find they are frustrated in general with not having enough time themselves, up significantly from the spring (23%).
"Despite a strong economy, the survey shows that small business owners have felt a financial pinch from higher gas and energy costs," said Alice Bredin, OPEN from American Express small business advisor. "Cautious about the future, they are keeping a watchful eye on their money, investing where it matters to grow the business -- customer service, technology, and in particular health benefits from employees (71% versus 54% from last year). Perhaps this explains why fewer appear to have dollars for raises and bonuses this year."
Thirty-one percent of small business owners attribute their success to their ability to create good relationships and a sense of community through their business. This may help explain why 26% will ask their staff to take part in a volunteer activity as a group this holiday -- up considerably from last year (16%).
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