The 12 tips of Christmas
The Christmas period can
be one of the most profitable but also stressful times of the year for
small business owners. With increased demand from customers for retailers,
less interest for other types of businesses and pressure on all to keep
staff entertained, it can turn into a less than celebratory time for
entrepreneurs. So to stand you in good stead for the weeks ahead, read
our top tips for surviving - and benefiting from - this year's festive
season.
1. Tax-free Christmas cheer
Did you know that if you give
certain gifts to your employees you can claim back the tax? HM Revenue
and Customs allows employers to give presents such as a turkey, a bottle
of wine or a box of chocolates to employees with tax relief. Be careful
though. As PricewaterhouseCoopers' Kevin Nicholson says to qualify for
tax relief the full cost has to be below £50 and strictly includes
wrapping, bows and postage and packaging. "Otherwise HMRC will
override the £50 rule and the business might get a tax hangover in
return for its generosity," Nicholson advises. www.hmrc.gov.uk
2. Let Christmas come early
Why not give your employees
Christmas Eve off? While you are under no obligation to allow your staff
to stay at home on December 24 – it's not a Bank Holiday – it could
be a way of raising morale and boosting motivation. If you can't afford
for your staff to be off the whole day why not let them go home at lunchtime
or make the day a dress down/fancy dress/bring in games occasion. After
all, good things come in small packages.
3. Christmas bonus
A little something extra in
your employees' wage packets can go a long way to boosting motivation
during the festive season. Even just a small amount is a good way of
making staff feel good about where they work. Not so useful for big
corporates - although Northern Rock staff are reportedly getting a £200
bonus this year! - but such an action from a small business employer
is a great way of incentivising staff for the year ahead.
4. Lock away the photocopier
It's certainly worth throwing
a company Christmas do as it's a great way of rewarding your staff for
all the hard work they've put in over the past 12 months but unfortunately
year-after-year employers find themselves in trouble after the festive
fall-out. With the alcohol flowing, tongues can start wagging and conversations
which seemed harmless on the dancefloor can be seen as much more serious
the morning after with claims of bullying, harassment or even discrimination
a possibility.
So what should bosses do?
Without putting a dampener on the party atmosphere, ensure all employees
are aware of the company’s standard disciplinary and grievance procedures.
If staff are expected to come in the day after the do make this clear
and be careful to ensure all employees are catered for regardless of
their age, sex, sexual orientation, religion or disability. In addition,
consider providing transportation from the party venue to ensure staff
arrive home safely and as many lawyers advise – use the mistletoe
wisely!
5. How much?
Keep an eye on employee expenses
at this time of the year. Many workers may be tempted to claim extra
in the name of 'Christmas entertaining'. If you suspect it may be a
problem, set a limit on how much staff can spend on festive food and
drinks with clients and customers. And if employees want to send Christmas
presents to individual clients, why not buy lots of the same thing in
bulk? A case of wine for instance will work out a lot cheaper than individual
members buying single bottles.
6. 'Tis the season to be
charitable
Goodwill to all men and all
that so why not sign your employees up to Payroll Giving? Through the
scheme, also known as Give As You Earn, staff can regularly contribute
money to charity from their gross salary before tax is deducted. It
doesn't take much effort to set the scheme up and as Louise Mitchell,
of Aberdeen-based Precise Payroll, says: "Employers who have these
schemes in place are generating a vital income stream for charities
and in turn receive a Payroll Giving Quality Mark. This mark recognises
and rewards companies who make Payroll Giving available to their staff
and is an acknowledgment of their commitment both to employees and the
causes they care about." www.payrollgivingcentre.org.uk You could also consider nominating
a local charity and collect money from employees and local people or
why not get your staff to donate presents and deliver them to a local
children's hospital.
7. A thankyou goes a long
way
Have you thought about sending
a festive card to your existing customers to thank them for their business
over the past year? Although involving little effort it can bring huge
rewards. According to recent research by the Royal Mail, 69% of customers
spend up to £100 with a company who sends them a festive greeting.
Given the current concerns about the environment (one billion Christmas
cards are thrown away every year) and the stresses and strains with
the postal system this year why not opt for an e-card? Better still,
why not send a charity e-card? www.cardaid.co.uk/ecards And while we're on the subject of
thankyous, don't forget to say it to your staff. A welcome gift that
doesn't cost a thing.
8. Promotion-tastic
There are only a few weeks
to go but there's still time to cash in on the festive spirit. Spruce
up your website with a few Christmas graphics although don't go overboard
– animated snow covering your home page is not necessarily a good
thing! Retailers will face increased demand but other types of business
may face a downturn so consider offering a few seasonal promotions –
10% off in the week before Christmas, buy-one-get-one-free offers, money
off in 2008 or even chuck in some form of Christmas gadget with every
product or service purchased.
9. Security
High street retailers may
enjoy a bumper number of shoppers at this time of years but recent research
shows they can also expect a significant number of people up to no good
coming through the doors. According to Checkpoint Systems, three times
as many goods as normal will be shoplifted from stores in the lead up
to Christmas with more than 105,000 thefts of items worth £430m taking
place. With all that in mind, consider taking on extra security staff
or at least ensure existing guards keep an extra eye on any suspicious
characters.
And it's not just retailers
who need to worry about Christmas crime. Any business operating premises
that are shut down over the festive period should the make sure the
building is secured with all doors and windows locked and alarms are
switched on. With most people at home enjoying the celebrations with
friends and family, the Christmas period is a prime time for criminals
to target unstaffed buildings.
10. Have yourself a green
Christmas
Why not make this Christmas
one where you make green the colour of the season? As well as sending
e-cards instead of traditional paper and card versions think about where
your company Christmas tree comes from. If you want to display a real
tree make sure it's British and can be planted outside and re-used next
year. You could also recycle it. According to figures from Sustainable
Living, of the 6m trees bought last year only 750,000 were recycled.
Check with your local councils whether they provide tree recycling facilities
or visit www.recyclenow.com to find your nearest location. And
do you really need to buy new decorations to put on the tree? What's
wrong with last year's? If you do feel the need to buy more sparkly
stuff go for the Fair Trade versions. Oxfam is one source of ethical
decorations. www.oxfam.org.uk
11. The return
January 2 2008 is likely to
be a bad day for many. The first day back after the Christmas break
is traditionally not an enjoyable one even for the most motivated of
workforces. So what can you do to overcome the January blues? Communicate
New Year greetings and set objectives for the year ahead in a welcome
back newsletter or email. If staff have worked anti-social or extra
hours over the Christmas period make sure it is recognised with days
off or other rewards. Getting everyone involved in the company’s strategic
planning for the coming 12 months can also be a positive step so why
not take your workers out for lunch and get them talking? Ultimately,
bosses should listen to what employees have to say as taking into account
their wants, needs and opinions will help to make 2008 a much more successful
year.
12. Resolve to do better
In the lead up to Christmas
2007, have you noticed something which needs to be improved next year
or something that went unexpectedly well? If so, then make sure you
apply it to Christmas 2008. If your festive-related marketing didn't
bring in as many punters as you predicted, rethink your strategy. If
a small piece of advertising worked remarkably well do it again next
year. If you didn't have enough staff to cope with demand think about
how you could streamline processes or employ more workers next year.
Speak to your customers. Ask them about their experiences. It's certainly
in your best interests. And as well as writing down New Year resolutions
for your personal life why not also come up with some for your business?