No Bonus Memo You are the manager of the sales department. Over the years, your

Question

No Bonus Memo

You are the manager of the sales department. Over the years, your employees have been very productive, and sales have been high. You have always given employees generous holiday bonuses (usually more than $1,000).

This year, however, because of a slow economy, you will not be able to offer the holiday bonus. Everyone is working hard, but sales are still down 15%. Your projections indicate that the economy is recovering and sales should be up about 20% next year. If the projections are accurate, you should be able to offer the bonus again next year--but you can’t, and you won’t, make any promises.

Write a memo to your employees letting them know the bad news. Add details to make your message more complete. Do not, however, make an empty promises or offer them consolation prizes to soften the blow.

Explanation / Answer

To: <Sales Team>

From: < Name>

Date: <Date of the Memo>

Subject: Note on Holiday Bonus <Year>

Team,

Let me first thank all of you for your focused efforts. However, we did not meet the Sales Target of $10 Million and were 15% short this year.

We did see movement on the individual performance graphs of Kathy & Lynda. Kathy was up 10% from her previous year’s performance and Lynda 12%. Good job!!

We have seen a slowdown in the Economy this year and the buyer’s have not been too kind. As per the updates received, overall spending of our customer base fell by more than 25%. The government is making certain policy adjustments, which should result in a projected 20% increase in Sales for us next year.

The Company has always offered handsome (often > $1,000) holiday bonuses every year to the Team basis our Sales performance. This year however, in the light of above there would not be any holiday bonuses.

We are in discussion with our partners and clients in the market and as the markets recover we should see a positive spike in Sales numbers as per our projections. Provided all goes well, we should see the holiday bonus back next year.

I would once again, extend my Thanks to the Team for their continued efforts. I am positive that with all the pieces falling into place and the economy recovering, we should see the Sales back on track next year and I would be more than happy to announce the holiday bonuses.

Thank you,

<Your Name>

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