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Six Tips for Rewarding Employees When Cash is Tight

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Six Tips for Rewarding Employees When Cash is Tight

By Solovic
Published: November 18, 2010 Updated: June 16, 2011

As small businesses have struggled to survive during the recession, it has been difficult to reward employees with raises and/or bonuses. In fact, many small firms found it necessary to cut employee salaries, perks and benefits in order to survive financially. As we approach the end of 2010, the picture doesn't appear to be getting any better. Only a small percentage of small businesses say they'll be offering salary increases this year. And those who do plan for the increases to be limited.

So how can you reward employees for outstanding performance without breaking the bank? Here are some ideas that can help you reward and motivate your team without breaking the bank.

Cash vs. Recognition: Research has confirmed that many employees are motivated as much, if not more, by recognition as they are by cash. Personally, I know people who make a good salary and regularly qualify for bonuses, but they are miserable in their jobs. On the other had, I also know talented individuals who work for less money than they might earn somewhere else because they enjoy their work environment and feel as though they are recognized for their contributions. As a result, they are loyal and committed to the companies with which they work.

Reward Throughout the Year: A lot of companies fall into the pattern of rewarding employees once a year -- usually in conjunction with a performance review. A better approach is to reward your team sincerely, and freely throughout the year. That helps motivate your team and keep them energized.

Make it Public. Don't recognize employees behind closed doors. Do it publicly. Everyone enjoys being acknowledged for their efforts in front of their peers.

Give the Gift of Time. As the mother of four step-grandchildren, I can tell you the gift of time is as appreciated as expensive presents. The same is true with employees. Give a high-performing employee an extra day off or allow him or her to work a flexible schedule. You may want to consider offering the employee an opportunity to telecommute for all or part of the work week.

Be Spontaneous: Rewards and recognitions don't have to be doled out at specific times. Be spontaneous and fun. And don't do the same thing all the time. Shake things up. For example, bring a massage therapist into the office as a special reward or have an outstanding employee's car washed on site.

A Small Thank You. Small gifts bring big smiles as a thank you for a job well done. A gift card to a favorite restaurant or spa could be a nice treat. Tickets to a sporting event or theatre performance are also a nice way to say thank you. Remember, you can get discounted certificates on many websites so you don't have to pay full price.

Most employees understand the current economic climate and will appreciate your creative efforts to recognize their contributions.

About the Author:

Susan Solovic
Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and a small business contributor to ABC News and other media outlets, public speaker and attorney. In addition to sitting on several executive boards of small business organizations, Solovic is the CEO and co-founder of ItsYourBiz.com – a company she led from a concept to a multi-million dollar enterprise.(formerly SBTV.com) She is also a featured blogger on numerous sites including Huffington Post, AllBusiness.com, Constant Contact, WSJ.com and Fast Company. Her forthcoming book, It’s Your Biz: The Complete Guide to Becoming Your Own Boss, is scheduled for release in October 2011.

Comments:

As a business owners, empowering good relationship to all of your employees is really essential, one of the common approach given is through rewards. Those rewards may come into money matters, work condition, works status and so much more. In relation to this post, accepting the fact that not all the year business is flourishing, there are instances business owners suffers from recession or simply financial problem (that's not easy!). Therefore there are still ways even if simple in form you can do in order to reward employees for their outstanding performance and contribution. Good to know that by following above mentioned steps could help you do it in reality. House and lot
I have read lot of business books, employee and employer relation, motivational books but this is something very amazing.It only one motivational theorist call Abraham Maslow said something similar to your.I really enjoyed contribution.Give more.Have written book on such topic?
I have been surfingonline more than three hrs today, up till now I never found any attractive piece like yours. It's pretty worth enough for me. Personally, if all website owners and bloggers made good content as you did, the web are going to be much more practical than ever before. Thx for sharing
First of all really amazing post with lot of useful tips. All points are amzing but the one point which i agree 101% is 'I also know talented individuals who work for less money than they might earn somewhere else because they enjoy their work environment and feel as though they are recognized for their contributions' as these is my personal experience few years back i was working with one company and i really enjoyed work as very supportive Heads and staff and i am getting lot of calls who are offering great offers but i have rejected all as work satisfaction is more important to me comapre to money.During this recession the best gift for employee is really 'Gift of Time' like you told ( 'Give a high-performing employee an extra day off or allow him or her to work a flexible schedule') that is also an amazing tip. Many of us spend lot of hours in office but this type of time gift really really fantastic idea.I dont know but from my heart i am saying this is wonderful post i have ever read. I have read lot of business books, employee and emplyoer relation, motivational book but this is something very differnt.Lastly i more thing, i am getting laugh but still it is also a good idea that bring a massage therapist into the office as a special reward or have an outstanding employee's car washed on site. Thanks from heart to Mr.Solovic ( i am interested to know is there any book you have written on such topic)

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