Behind every successful company is a team of dedicated individuals who’ve turned your vision into reality. As the year winds down and this season of gratitude settles in, this is the ideal time for business owners to reflect on the contributions of their employees and thank them thoughtfully. While a simple “thank you” is always appreciated, show your gratitude through thoughtful gestures that can make a lasting impact.
At LPJ Legal, we help businesses create incentives and agreements that not only express appreciation, but also strengthen employee loyalty and align with the company’s long-term goals.
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The Value of Gratitude in Business
Studies consistently show that employees who feel valued are more engaged, productive, and loyal. Demonstrating gratitude in meaningful ways can boost morale, reduce turnover, and foster a culture of mutual respect. To maximize these benefits, it’s essential to take a strategic and legally sound approach.
Legal and Strategic Ways to Show Appreciation
- Incentivize Employment Reviews
A straightforward approach to showing employee appreciation is by acknowledging their progress or enhancing their role. Revisiting or updating employment agreements can show employees that their roles and contributions are evolving right alongside the company. Consider the following:
- Employee Reviews: Encourage employees to keep track of their achievements, and then share them with you in a scheduled meeting at the end of the calendar year. This gives them the ability to visualize their achievements while ensuring that you don’t minimize any of their notable accomplishments.
- Enhanced Benefits: What do your employees really want? Consider implementing additional vacation days, flexible work arrangements, or wellness stipends for high achievers or long-time employees.
This transparent and professional update process can ensure clarity and foster goodwill.
2. Consider Unlimited PTO
I know what you’re thinking, but hear us out, unlimited PTO could be the missing piece to your all-star team. Time and time again, we hear that employees want more money, more time off, or more flexibility with work. And studies show that unlimited PTO is directly correlated with increased job satisfaction and higher productivity rates. With an unlimited PTO structure, you reinforce the idea that your company is built on meeting important objectives, not on aimlessly clocking hours. So try focusing on work outputs, not on the hours input.
From a legal standpoint, one huge advantage of unlimited PTO is that employers are not obligated to pay out unused vacation days when an employee leaves, reducing financial liability.
Here are some other things that could benefit your team while you’re considering considering unlimited PTO:
- Unlimited PTO is not one size fits all: Don’t feel pressured to conform to another company’s PTO structure. Think of unlimited PTO as a commitment to the mental health and work-life-balance of your team. With the help of LPJ Legal, you can create a structure that benefits both your bottom line and your high performers.
- Define clear guidelines and expectations: For example, your company’s rule may be that PTO must be requested beforehand, or that PTO can only be taken for a maximum of 3 weeks at once without requesting additional permissions.
- Ensure that your critical sales periods remain staffed: If there are periods of the year when you NEED your team in office, you could require that all employees be present during black out periods, or for certain project deadlines. This allows your staff to enjoy unlimited PTO while still maintaining the coverage you need.
Note: LPJ Legal adopted an unlimited PTO schedule, and we can say firsthand that it has resulted in an enjoyable and efficient work culture. With our experience, we can walk you through creating the legal guidelines to smoothly implement this strategy into your own workplace.
3. Bonuses
Bonuses are a classic way to reward hard work and success, but structuring them correctly is key. For your employees, consider:
- Performance-Based Bonuses: Tie rewards to specific achievements to motivate your team, while simultaneously steering the direction of your company’s internal growth.
- Profit-Sharing Bonuses: Create a system to share a portion of the company’s profits with employees, fostering a sense of ownership and investment.
Key Tip: Ensure that all bonuses comply with wage and hour laws to avoid disputes or unintended liabilities. Bonuses structured incorrectly may violate wage laws. Don’t neglect to consult legal counsel when creating incentivized rewards.
4. Equity Shares
Offering equity in your business is a powerful way to reward long-term contributions and align your employees’ interests with your company’s success. Options include:
- Stock Options: Grant employees the right to buy company shares at a set price, often as part of a vesting schedule.
- Restricted Stock Units (RSUs): Provide shares outright after certain conditions, such as tenure or performance, are met.
Key Tip: These arrangements require carefully drafted agreements to clarify terms, protect the company, and comply with securities laws. Consult legal counsel, equity shares without clear agreements can create shareholder disputes.
5. Speak to Your Team’s Lifestyle with Unique Incentives
Work-life balance is something that employees of all backgrounds are beginning to value. Go beyond traditional work incentives and incorporate opportunities that your team will really love:
- Education Reimbursement: Do courses exist that could enhance your team? Invest in your employees’ growth by covering costs for courses or certifications. These courses don’t have to be expensive, tools like Udemy or Coursera offer inexpensive educational courses that are completely online and in many cases self-paced. Invest in a membership for your office and gain access to inexpensive courses for your entire team.
- Sabbatical Programs: Your team’s talents and passions undoubtedly extend beyond the office. Whether they spend their free time traveling, with family, or learning new skills, offer extended paid time off for long-tenured employees to recharge and pursue their personal goals.
- Family-Focused Benefits: Show you value work-life balance by providing benefits that affect those closest to them, including childcare assistance, family health stipends, or parental leave enhancements.
5. Teamwide Celebrations to Tackle our Least-Favorite Tasks
If you’ve been blessed with a team that loves each other, then there’s nothing like an event or retreat to celebrate their collective wins. Use this time to enjoy one another, but also to get some much-needed tasks done including:
- Reviewing Next Year’s Company Strategy
- Compliance Training and Policy Acknowledgements
- Reviewing Updated Employment Agreements
Why Legal Guidance Matters
Before you share your company’s strategy or send out documents to be signed, At LPJ Legal, we specialize in creating legally sound, customized solutions that help businesses show gratitude to their teams while protecting their interests.
Start the New Year Right
Well-intentioned incentives can lead to unintended consequences without proper legal oversight.
Show your team how much you value them with meaningful incentives and agreements. Contact LPJ Legal to explore options tailored to your business needs. Together, we can help you build a workplace culture where gratitude leads to growth.
