HOLIDAY TIPPING: HOW MUCH AND WHY

Despite all the potential complications, "It's certainly a strong New York tradition to give the building staff a gratuity," notes Steve Miller, president of Plymouth Management. Part of it is graciousness, part of it is enlightened self-interest. Eugene Andrews, president of Andrews Building Management, advises boards to "be as generous as possible, especially with staff members [who] are cherished and respected. They can make or break a building." It may only be a gesture, but the greater the care the board takes, the longer the gesture will be savored by the staff.

For some boards, deciding on an appropriate gratuity is uncomplicated. But there are other, more complex scenarios, where the employees number in the dozens; where shareholders are expected to provide the lion's share; and, perhaps most awkward, where employees have done the bare minimum and still expect a cash "thank you" every winter. With all that to consider, how do you go about determining the right gratuity?

Bonus? Or Tip?

The first thing to realize is there is a difference between a tip and a bonus. Mary Ann Rothman, executive director of the Council of New York Cooperatives & Condominiums, offers this definition: Shareholders tip, boards give bonuses. "A bonus is an amount determined by the employer and will be treated as any other taxable income," she explains.

"Most buildings only give bonuses to the superintendent," observes John Sicree, director of management for Brown Harris Stevens, "and part of the bonus depends on what salary [he or she] makes."

One way for a board to determine what to give is to seek feedback from the shareholders during the year on how the staff has performed. Employees are often more prompt to respond to board members' complaints than those of shareholders. "It shouldn't be that way, but it is a lot of times," says Arthur Davis, a co-op consultant. The board has to use the shareholders' experience as a barometer of what's really happening in the building.

The manager can also be of help in this sort of research. Helping boards decide what to give is part of his job, notes Michael Berenson, president of the property manager AKAM Associates. "We try to make it as easy as possible for the board. We do an evaluation of the building [employees]," reviewing their work and soliciting input from the building's super and residential manager, and prepares a spreadsheet for the board listing what the building has given each employee in bonuses over the past two years, plus recommendations for the current year.

In Sicree's experience, most buildings distinguish between the super and other employees, with the super getting a bonus and the others receiving holiday tips from individual shareholders. At his buildings, says Andrews, boards distinguish among the super, the porter and the handyperson, and give bonuses to all three.

Don't neglect those employees who habitually get overlooked, such as the doorpersons who work late at night or early in the morning, or members of the maintenance crew who don't have the same high profile as other employees.

Finding the Formula

After considering all this, how do you then come up with appropriate bonuses? The wisest boards sit down ahead of the holidays to figure out a formula for giving, based on factors ranging from the length of an employee's tenure, his or her general cooperativeness and how hard the employee has worked during the year. The whole process is "highly individualized," one co-op consultant points out, with boards taking into consideration what they have given in the past, their hopes for keeping the employee on staff and whether the employee has gone above and beyond the call of duty.