Every December, dental practice owners face the same dilemma: what to give their team for the holidays. Many default to the traditional 'holiday bonus', an envelope with a check, often given with little explanation, sometimes with guilt attached, and nearly always with mixed results.
On the surface, it seems generous. In reality, it rarely delivers the outcome you hope for. Holiday bonuses aren’t motivating. They’re expected. And when expectations don’t match reality, they can cause more harm than good. It’s time to stop paying holiday bonuses altogether.
What starts as a gesture of goodwill often backfires. When a bonus becomes routine, it’s no longer a reward; it’s perceived as part of compensation. That shift can breed entitlement.
At the same time, December is already an expensive month for most practices. Adding a lump-sum payout puts unnecessary strain on the owner. And because the payout isn’t tied to performance, it does nothing to influence daily habits, production, or patient experience.
Even worse, morale can take a hit if the bonus is reduced or skipped. What was once meant to boost spirits now risks resentment.
A holiday bonus is really just an arbitrary gift, one that costs you money but doesn’t grow your practice.
The truth is, your dental team doesn’t want arbitrary gifts. They want recognition that feels fair, consistent, and tied to their contributions. They want clear goals and a transparent connection between results and rewards.
What keeps a team engaged isn’t an envelope in December. It’s a system that reinforces their value year-round.
The alternative is a structured incentive plan, one built on measurable, daily goals that tie directly to practice success.
Incentives are most powerful when they:
When practices I coach replace holiday bonuses with structured incentive systems, the transformation is striking. Revenue grows, engagement deepens, and retention improves. Compensation becomes a source of clarity instead of conflict.
Most importantly, every month becomes a 'bonus month.' Your team doesn’t have to wait until December to feel recognized. They experience the satisfaction of earning rewards all year long.
Of course, moving away from holiday bonuses requires a thoughtful approach. The best time to implement change is at the start of a new year or quarter. Communicate clearly that you’re not taking something away, you’re replacing it with something better.
Show your team how this system benefits them more consistently and fairly than a one-time payout ever could. Once the new system is in place, your team will quickly see how hitting daily goals leads to monthly rewards, and how their effort is directly tied to their success.
Holiday bonuses may feel like tradition, but tradition alone won’t grow your practice or your team. A well-designed incentive plan drives performance, strengthens culture, and rewards everyone involved.
This year, make the decision: never pay a holiday bonus again. Replace it with a system that rewards your team year-round, and watch your practice thrive.
We strongly encourage continuing your existing practice tradition of a holiday party or team gathering, and giving each team member a small, thoughtful gift at the event. Many of our client practices even choose to skip the small gifts so the practice can donate that money to a meaningful cause or charity instead.
Ready to build your own incentive system? I’ve created a simple 5-Step Goal Setting Worksheet to help you design daily and monthly targets that keep your team motivated and your practice profitable. Download it here and start building a plan that truly works.