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Also try to think of non-monetary gifts, such as a "No questions asked day off."
I think given what Steve said in his original post, this is a good idea as a bonus, but I do think that a regular, permanent solution needs to be found. Steve said specifically:
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There are times now that we can go a few weeks without a day off. I'm finding that she is getting a little more irritable at the after hours time things are taking, especially since she as two small boys.
I honestly would get irritable, too, if I was suddenly finding myself working weeks w/out a day off - and I *don't* have two small boys. I would really be pissed off after a while, to be honest, no matter how nice or supportive my boss was. There comes a point where the employer has to understand that the employee is NEVER going to have the same level of devotion and commitment to the business that he does - because it's not *her* business. For her, no matter how much she loves her job and her boss, it's still a JOB and she still needs to be able to accommodate her home life and her kids first.
You need to find a way to give her back her home life. A week of overtime is one thing. Even a couple of weeks, if it's planned for. But weeks and weeks at a time simply becomes an unacceptable burden on the employee - having to find babysitters, having to juggle dinners and bedtimes and baths ... not being able to do things with her kids because they're in bed when she gets home. Etc.
Solve that problem (and I still think adding a seasonal employee is a strong option), and you'll have a happy employee again.
Karen