Budget-Friendly Ways to Reward Employees

We hear it every day in the news.  Companies, small and large alike, are struggling to bounce back after the recent economic downturn.  For those companies which have been able to sustain themselves in this economy, they’ve had to tighten the belt financially.  Employees are told that they need to be grateful that they have jobs.  Why should they expect pay increases, perks or bonuses?  Employees frequently become burnt out, disengaged and frustrated.  As a leader, how do you then manage and motivate employees for excellence during lean times?  A Gallup study looking at the impact of disengaged workforces estimates the current cost of lost productivity alone to be more than $300 billion annually.

So while you might say that your organization can’t afford to establish any reward systems, you know that companies that focus on cultivating employee engagement have seen firsthand the positive impact on employee retention, customer satisfaction and loyalty, and overall performance.  Simply stated – you can’t afford not to offer reward programs.  Your organizational sustainability literally depends upon it.  Your brand’s value is worth zero if you don’t have employees who are engaged and influencing it positively through their contributions.

The good news is that there are non-monetary incentives to reward your valuable employees.  Employees will remain loyal to your company for rewards other than money.

Let’s then look at five budget-friendly ways to retain your talent and incentivize them:

1. Create sales challenges or goals that provide the employee with additional time off instead of bonuses upon achievement.  Many employees are indicating that they would voluntarily forego merit increases if they instead received additional vacation or paid time off.  Work-life balance has become key for many employees, and time off may be more valuable than a pay increase.
2. Reward employees with a free luncheon on Fridays.  Free pizza goes a long way in the mind of your team.  Or why not take it a step further and make it a mini celebration luncheon with serving stations and a weekly theme?  A good budget tip is to shop around with the caterer and negotiate pricing based upon the longer term of the contract.  Food always puts people in a happy place, especially when it’s free.
3. Allow for flex time.  Can’t offer a tuition reimbursement program?  How about instead offering your employees flexibility to rearrange their work time to attend classes if they choose to pay for continuing education on their own?  Or how about encouraging employees to adjust their work schedule to attend their children’s (or nieces/nephews) school activities?  Forcing your employees into a strict 8-5 routine doesn’t support today’s societal needs.
4. Host contests to increase team spirit and collegial competitiveness.  Make your workplace a fun place to be.  Have an office/cube decoration contest around the holidays.  Employees then get to vote for the best-decorated cube (other than their own that is!).  The winner then gets a designated parking spot for the month or a gift card for her favorite restaurant.  You could also structure a program that would call for 2 teams to compete toward a certain company goal and have the teams determine what the losing team would have to do for the winning team!
5. Develop a community forum site for your employees to interact with one another.  Allow for them to share mini-brags about things they’ve accomplished for the company.  Exchange recipes.  Post items they want to sell a la Craigslist.  Organize happy hours.  Post pictures taken within the company.  Ask tech questions.  Give restaurant reviews.  Employers recognize that employees want to also be identified as human beings, not just human capital, and should celebrate this on web-based community forums.

Not certain if these types of initiatives would work for your corporate culture?  You can also easily survey your employees to find out what type of non-monetary incentives they would like to see and then develop programs accordingly.  Employees want to feel like they’re having an impact upon their organization.  By enrolling them in the development of your reward package, you’re giving them this opportunity.

I would love to hear your thoughts on the above.  Just drop me a line below and let me know what your thoughts are.  Also, if you like what you read, please share it with friends by clicking one of the links below!