Attracting and retaining the top talent are two staffing issues business owners constantly face.
While excellent pay rates and opportunities to progress are two of the most common ways to overcome these challenges, they are certainly not the only strategies you can use to incentivise your team. In this guide, we’re going to explore some of the more creative approaches to staff incentives that will motivate your employees to do their best work and reward them when they do…
Introduce bonus payments throughout the year
Bonuses come in many forms, but while end-of-year bonus schemes are often poorly run, lack transparency and can actually serve to demotivate the team, there are other types of bonus that can be better received.
One-off bonus payments can be introduced throughout the year to incentivise employees to meet key challenges and help the business grow. For example, if a lack of awards is holding the business back then any employee who wins an award for the business should be paid a bonus.
Some employers do similar by introducing an ‘idea bounty’, which is a payment for ideas that help to improve the business, whether it’s simple steps to streamline internal processes or wider reaching changes. If the ideas are fully fleshed out (with processes) and go on to be implemented then a bonus should be paid. This should be proportionate to the value added to the business.
Make employees business owners too
The opportunity to participate in the ownership of the business and share in its success can be an effective way to attract, retain and incentivise employees. This is particularly the case for smaller firms that want to attract the best talent but do not have the budget to compete on salary.
As well as aligning the interests of the employees with the business strategy and helping to retain key members of the team, there are also a number of other benefits associated with this approach. Firstly, there are advantages for the cash-flow of the business as no money leaves the company. The reward of shares is also very cost efficient as it maximises the net return for the employee and reduces costs for the employer.
Let staff choose how they are rewarded
One size doesn’t fit all when it comes to incentivising employees. What one employee might really value could fall flat with other members of the team. For that reason, it’s often best to let employees choose their own incentives, whether it’s additional time off, a monetary reward or days out. Everyone values flexibility in their lives and having a plan that allows employees to choose their own benefits and perks can really pay off.
Offer paid time off for community pursuits
Another perk we have seen more of in recent years are businesses offering high performing employees paid time off to explore creative and community-driven pursuits. Giving staff time to volunteer demonstrates the company’s commitment to the community and its social conscience. With social causes becoming more and more important to modern employees, this is one incentive your team will really thank you for.
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