Juggling employees, downturn and the holidays

"The job market isn't what it used to be — people may not have savings to fall back on," she said. "I would rather err on the side of giving people notice."

It's also a good idea to let employees know soon that they're not getting yearend bonuses, although many workers are likely expecting that to be the case. But Gibbs said companies that can't afford the cash can nonetheless reward staffers for their hard work.

"They might want to consider more flexible hours, allowing people more time with their families," he said.

Productivity can be an issue during the holidays because employees are often distracted, thinking about buying gifts, juggling family visits and trying to get away from work to attend holiday events at school. Many hope to take a few minutes out of the work day to do some online shopping.

That can rankle an owner in the best of times; now, it may be maddening to a boss who needs staffers to focus on bringing in more revenue.

Gibbs argues that a little flexibility and tolerance at holiday time will help a company in the long run. For example, giving workers a break during the day to do their shopping or run an errand is likely to make them more, not less, productive.

"It's a gesture that probably doesn't cost a lot, and it acknowledges that the holiday season is going on," he said.

And there's the issue of days off — most workers want time away from work during the holidays, while an owner may feel this is just not a good time for that.

Hilger suggests some compromise and creativity. She suggests asking a staffer, "is there a way you can use half a day instead of a full day? I'll feel better and you'll have the afternoon."

"If you want to invest in your staff and their satisfaction, it's helpful to give a little in terms of flexibility and time off," she said.

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