The Year-End Bonus Headache No One Warned You About

By: Garrett Wilson

As we head into the start of 2026, it’s worth reflecting on what happened in 2025 so we don’t repeat the same mistakes. Few topics created more tension at year-end than bonuses and holiday gifts. If you spend any time in dental social media groups, you saw it firsthand—frustration from employees and defensiveness from employers.

Year-end bonuses tend to surface deeper issues around expectations, communication, and leadership. Let’s break down the most common challenges on both sides and how to avoid them going forward.


Employee Challenges

A recurring theme every year is disappointment. Some employees feel their bonus was too small or not meaningful enough. Others compare what they received to peers or online anecdotes. That reaction often ignores a few important realities.

Bonuses Are Not Guaranteed

In most practices, bonuses are discretionary. They are influenced by practice performance, cash flow, reimbursements, and broader market pressures.

Missing Goals Is a Shared Responsibility

If production, profitability, or other targets were not met, that outcome is rarely one person’s fault.

  • Leadership owns goal clarity and tracking
  • Employees own awareness and engagement

If expectations were unclear or progress was unknown, that should be acknowledged on both sides rather than assigned unilaterally.

Complaining Publicly Solves Nothing

Airing grievances online may feel validating, but it damages trust and rarely leads to better outcomes. Constructive feedback belongs in direct conversations with decision-makers.

Perspective Matters

Some years allow for more generosity than others. When expectations are not met, a professional response is to say thank you, reflect on what can be improved, and move forward.


Employer Challenges

From the employer side, frustration often stems from expectations that haven’t been set.

Unclear Bonus Structure

When bonuses are paid year after year without explanation, they stop feeling discretionary and start feeling guaranteed. Without clear structure, employees assume consistency—even when business conditions change.

Undefined Success Metrics

Employees cannot “earn” a bonus if they do not know how success is measured.

  • Clear goals
  • Defined metrics
  • Regular updates

These are leadership responsibilities. Without them, bonuses feel arbitrary, even when intentions are good.

Lack of Documentation and Check-Ins

A major breakdown occurs when there is no documentation or regular check-ins. If teams only learn how the year went at bonus time, disappointment is almost inevitable.

Leaders should be communicating progress throughout the year, sharing where the practice stands, and explaining what is on track or at risk.


The Path Forward

Year-end bonuses work best when they are intentional, communicated early, and reinforced throughout the year.

  • Employees should understand how their efforts connect to outcomes
  • Employers should document goals, provide ongoing visibility, and avoid surprises

When both sides understand their role, year-end becomes a reflection point instead of a flashpoint.

Garrett Wilson

Garrett Wilson

Garrett Wilson is the CEO and Founder of Pay Insights, a company dedicated to simplifying compensation information to build trust and transparency between employees and employers. He uses over 17 years of human resources experience to provide better data and educational resources to promote happier and healthier workplace relationships. Garrett obtained his master’s degree through the University of South Dakota in Human Resources and bachelor’s degree in business management from Minnesota State University – Mankato. He also holds multiple senior level HR certificates. When not working, you can catch Garrett creating fun travel adventures with his wife, spending time with family, or whipping up something delicious in the kitchen.