Apart from a pay rise, how else can you reward your staff?
Apart from a pay rise, what is the best value for money method for rewarding your staff?
It really depends on who your employees are. I know that if you look at a lot of the companies that make it to the Best Places to Work list, many of them don't use a lot of money to reward their employees and create better workplaces (apart from Google of course).
A fair few employees these days value flexibility, freedom and fun more than money so you can think outside the box on a lot of the rewards you give out. Plus monetary incentives have been criticized for years in management theory and the importance of internal motivators have been a huge topic of discussion.
For example the best place to work in 2012 OBS has a Chief Fun Officer, and other little things you can do to reward your employees is to give them a recreational space and the flexibility to work from home. These things are cost-effective for companies and result in engaged and happier employees. Where I used to work E-Web Marketing which was nominated the 2nd best place to work in 2011 also shares these principles and emphasises employee happiness over monetary rewards.
I think there is no one answer to this, however if you know your employee's well enough you should know what will make them happy, and it's not always money - take the time to get to know them and reward them with something personal to them - that will go above and beyond any monetary bonus.
Yes agree with colleagues above, but we also have to be practical, as creating bespoke rewards for each employee is probably not sustainable. I have found consistency, as opposed to size of a one off effort, to be the key to success. So one off's don't deliver the results you are seeking.
Here's some kick start ideas I have used to good effect:
- Give every employee an extra days holiday on their birthday
- Profit share works very well, and is of course directly related to performance
- Gift of equity, needs to be hurdles to achieve this, but if coordinated well this works superbly for both employee and employer. This is most appropriate to key staff members whom you wish to retain in the business long term.
- Gifts relevant to the employees lifestyle: We have used itunes cards and Gold Class cinema passes in the passed which worked really well as small surprise rewards. We simply gave them out to all employees at our Friday drinks as a simple thanks for a good week/month.
Hope this helps
Had a further thought today whilst feeling a little under the weather, offer a free flu jab to all employees. I believe you can get a doctor to visit your workplace and get it sorted on site. It's a win win with the employees getting the treatment for free and the company assisting with a hopefully Flu free winter.
Here's one the companies that offer the service on site at your offices: http://www.medimobile.com.au/melbourne.php
As Wendy mentioned - take the time to get to know them and reward them with something personal to them.
There is very good way to reward you staff, it takes a little bit of time, or simple 2-3hour workshop, to figure it out. Form psychological point of view we all like to experience love from others and there are five ways -"love languages" through which we experience love - receiving gifts, physical touch, quality time, receiving gifts and acts of service. Each person is different and if you want to reward your staff you would have to know their "love language".
When you know that, then you can reward them in their "love language" and that is one of the beat ways to show your appreciation. Also when you do that, they will really feel the reward.
"Love languages" are different in personal and professional life so avoid making a mistake of knowing someone in personal life and think that same reward will work in professional life.
It is simple to do that yet a little bit too long to explain it all in this comment. As I have mentioned, it is easy to do it yet it has to be done in group environment.
If you like, feel free to contact me and I explain you the details over phone or Skype.
There are some brilliant ideas above! The key issue is whatever you do try to keep it a variable cost, or more specifically, it doesn't become a fixed cost such as a salary increase. It needs to be a reward. Any reward that becomes standard ceases to be a reward and becomes an expectation.
Just relized, I have mentioned one "love language" twice, all five are: receiving gifts, physical touch, quality time, words of affirmation and acts of service.
David, I like your answer! Now that's thinking outside the square !