The BizFilings blog covering business tips and trends.
How to Reward Your Employees when You Can't Offer Them a Raise
Published on Jun 8, 2011
Read our article, 'How to Reward Your Employees when You Can't Offer Them a Raise' at 'Time to Start Up,' the small business blog by BizFilings.
As a business owner, or business manager, there are many duties that fall squarely on your shoulders. One of them is the annual review. And whether you hold a formal review with your employees, or carry out a more laid back approach, there’s one thing you can count on:Your employees are going to want a raise.
Let’s be realistic, many employees need a raise — with costs rising on everything from gas, to coffee, to diapers. And, if they’re a productive member of your company, they also deserve to make more money.
Giving employees a raise, even a small one, goes beyond investing in your staff. It’s also an investment in your company that can yield big financial dividends — because a happy employee is a more productive employee.
But what if you simply don’t have the ability to offer a raise this year? What other options do you have that will boost morale, as well as show gratitude and loyalty to your employees? If you want to keep them happy and motivated, you’ve got to find alternative solutions.
The Value of Time Off
What’s more valuable than money? Time. Some companies who can't give their employees a raise have started offering an extra day off per year. Simply put, this is not enough.
Give them an extra week.
Does this sound like a radical idea? Before you answer, remember that these are your employees — the nuts and bolts of your business and your future success. Giving them an extra week of paid vacation is kind of like giving them a one-week raise — without shelling out any extra money. And it gives them something else of great value. Time. An entire paid week off is something anyone would value.
It's important not to look at it as having one less person in the office for a week. Instead, look at it as having a more refreshed, appreciative and motivated employee in the office for the rest of the year. Chances are that each employee’s productivity will be higher than last year’s — even with one week less of work.
In her article, Pay Raise Alternatives: Reward Employees on a Tight Budget, human resources specialist Mary Margaret Kelly sites three additional ideas:
Allow your employees to telecommute. It doesn’t have to be every day, but an occasional work-at-home day can be a great time- and money-saving option for an employee.
Replace outdated office equipment. Still working with that dot-matrix printer? Hopefully it’s not that bad, but a few well-thought-out upgrades around the office can lessen frustration and increase productivity.
Offer training and development. Help your employees improve their skills, or bring in a motivational speaker to inspire them.
Eventually, the economy will get better. And when it does you want your employees to stick around, right? The better you treat them now, the better chance you have of retaining them when market demand rises for their talents.
One final Note: Say Thank You
Whether you’re able to extend a raise or not this year, always remember to say thank you to your hard-working employees. It’s an easy thing to forget when we’re super-busy and working on multiple projects. Appreciating your employees is a great gift you can give to them every day. It doesn’t cost a dime, but the positive impact is priceless.
May your business always experience abundance, growth and prosperity …
- Six Pay Raise Alternativesblog