Management Queries: Who gets a bonus?

Q. I am seeing that nurseries are increasingly offering welcome bonuses to new staff. We are struggling to recruit and this may help, but what about our current employees? It seems unfair on them that they are not being equally rewarded when they are hard-working and loyal. Unfortunately I can’t afford to give them bonuses too

Marie D’Arcy, managing director, Bright Beginnings Day Nursery

‘I have never offered bonuses before. But from April, if I hire a new starter or returner, the local authority will offer them a £1,000 tax-free cash payment. This is a pilot scheme running in 19 local authority areas.

‘One of my settings is within the Hull City Council area, so it qualifies for this offer. I will be surprised if it makes a difference. I think it will increase the number of applications we receive. But in my experience, they will be the wrong people for the job. If someone is looking for a job in childcare, they are going to apply anyway.

‘I have a big problem with interview no-shows already. If we set up, for example, five job interviews in one day, only three people or none at all actually turn up. We also receive applications from people claiming benefits who need to demonstrate they are job-hunting but have no intention of taking up a role. This wastes our time.

‘It would be better if the Government spent its money on funding the “free” hours at the amount they actually cost to deliver, so we could offer staff higher salaries. That would attract new hires and help retain existing staff, who are leaving to work in other higher-paid sectors.

‘Recently we have tried to boost our recruitment by advertising full-time posts also as part-time. I have also started texting people who apply, as recruitment can be more informal these days.’

Ginny Andreas, nursery manager, Little Adventurers Nursery

‘Offering a bonus is a good idea, but you do have to balance out what you are going to say to your other staff.

‘We offer staff finders-fees. If an existing staff member introduces a new hire, they receive a cash sum once the new recruit has worked with us for six months and passed their probationary period. This is worth £450 for a full-time member of staff or £350 if they are part-time.

‘To avoid making other staff unhappy about these bonuses, we offered them individual pay reviews when we introduced the scheme. That way we can reward staff based on their personal performance.

‘We also use bonuses to improve staff retention by rewarding long service. Any member of staff who has worked with us for five years receives a £300 longevity bonus plus an extra day of annual leave a year. At eight years, they also receive their birthday off every year. And after ten years, they receive £750 and three days off each year in addition to their birthday as paid holiday.

‘It’s hard to know if these measures attract people. What attracts applicants is a company’s ethos and staff who speak highly of it. We are very focused on keeping staff happy, which helps with retention. We have smaller financial incentives, including a monthly effort award with a £30 restaurant voucher prize. Staff can also get a 60 per cent reduction on fees if their children attend the nursery.’

Stephanie Newman, head of recruitment, Grandir UK

‘I can understand concerns about fairness towards existing employees. While it may not be feasible to provide existing staff with the same type of bonus, it is essential you ensure they feel valued and rewarded.

‘A bonus may serve as a short-term solution to your recruitment challenges, but in the long term I would recommend investing in a strategy to retain existing staff. For example, how recently have you reviewed your benefits packages? Do they still meet the diverse needs of your team? Are you creating a supportive workplace environment, or is there more you could do?

‘At Grandir UK, we offer our staff a wide range of carefully chosen benefits designed to enhance their work-life balance and wellbeing. These include highly flexible working patterns, access to private medical care, an extensive benefits portal offering cashback and a large discount on childcare. We also provide our employees with an extra wellbeing day every year to prioritise self-care and relaxation.

‘Of course, we also invest in our employees’ professional development. We try to make our staff feel valued and motivated so they can grow their career with us. And we aim to keep our salaries competitive.

‘Compared with a one-off cash bonus, making your workplace somewhere staff feel valued and rewarded is a longer-term, more valuable offer to a potential new hire.’