Beyond Paychecks: Creative Ways to Reward and Retain Employees
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OVERVIEW [top] Record-low unemployment levels, rising turnover rates and a growing flock of employees who can virtually name their price: Employers are left scrambling for unique ways to attract and retain the global talent they need to move their organizations forward. Over the past decade, such perks as signing bonuses, flex-time schedules and stock options have been commonplace. That means employers must begin flexing their creative muscles. The result is a number of fascinating and effective approaches to compensation. In addition to merely keeping employees, these unorthodox methods serve to energize the workplace and instill a sense of pride in employees. Not only do they see the success of their company in the form of extra goodies, but they also recognize that their employer truly cares for them and wants to provide them with services and special perks that will make their lives easier and make them feel valued. In this Quick-Read you will find:
- Examples of creative forms of compensation currently in use by other successful companies.
- Questions you need to ask yourself and your employees in order to develop an effective plan.
- For those employees whose eyes are constantly fixed on the corporate ladder, something as simple as a change in title can be a very effective, not to mention free, form of compensation. Instead of marketing manager, dub someone vice president of marketing, for example. Naturally, you can tack a raise onto that new moniker if you like, but in many cases, simply the new designation of respect is enough.
- Many of today’s young employees value flexibility more than anything else. Thanks to technology, they will soon be able to do their work from virtually anywhere on the planet. So if an employee comes to you, asking for an extended time off for a honeymoon or family emergency, why not suggest they continue to work for you part-time via laptop and the Internet for some of that time? They may appreciate the opportunity to continue bringing home the bacon while soaking in some rays or helping out with a difficult situation.
- In today’s ultra-fast-paced society, many dual-career couples find they just don’t have enough time to get everything done. As their employer, you can help them out and gain much loyalty by simply hooking them up with the right people and services they need to take care of their everyday chores. Consider having a local drycleaner pick up and drop off laundry at your place of business or contracting with a housekeeping service to clean employees’ homes at a group rate. In recognition of special achievements, you could even foot the bill for a month’s worth of housecleaning or a handyman’s services for the day. The cost is relatively minimal, but the payback goes a long way.
- If your employees are drawn to outward signs of prestige and your budget can handle it, you could join the growing legions of companies that are leasing cars and motorcycles for their employees. In some instances, something as simple as a one-year anniversary may merit such a reward, while in other cases, employees are only given such a lavish item for achieving a special milestone or landing an enormous account. Whatever they do to earn it, you can bet your employee will be thinking of you every time he or she turns the key.
- Take a good long look at the demographics of your employee population. Observe what kinds of activities they are talking about on a Friday afternoon. Ask them what kinds of things they like to do and what rewards have meant the most to them during their career.
- Examine your own budget. Can you afford a lavish and creative compensation program that awards cars to employees in recognition of an anniversary or significant achievement? Would it be more feasible to give occasional spa days, housecleanings and repair service? Even if you need to stick to free forms of compensation, don’t be frustrated. Sometimes, the old adage “it’s the thought that counts” really does ring true.
- Evaluate your program’s success six months or a year after implementing it. Has turnover dropped? Do employees seem happier? Are they recommending friends and former colleagues for open positions at your company? These are all signs that your creativity has paid off. However, that doesn’t mean you can rest on your laurels. Periodically, take those first steps again. Talk to your employees, look at their demographics and ask yourself what you can do to show you value them as a member of the team.
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Articles in our Entrepreneur’s Resource Center appeared in print and online newsletters published previously by the foundation. More than 1,000 articles can be found in the categories below, addressing timeless challenges faced by entrepreneurs of all types.