Employee Rewards on a Tight Budget

Increased inflation and shortage of key talent are forcing many organisations to pay more for new hires. A recent Gartner survey revealed that almost 60 per cent of CFOs are increasing funding for compensation. Many companies are beginning to offer one-time bonuses and other rewards in addition to annual pay adjustments to encourage employees to stay. 

Companies are already more transparent about pay scales and provide evidence that new hires are paid more, which could lead to resentment among existing employees. There is a need for chief human resources officers to focus on retaining top talent and employees in critical roles. With the proper personnel in the appropriate positions and equipped with the necessary skills and abilities, businesses can accomplish their goals and surpass their competitors.

The hypercompetitive labour market has led to inflationary pressures affecting talent retention with lowered incomes and an increased cost of living. Leaders are considering various compensation strategies to minimise costs. Recognising top performers is key to motivating future performance. Offering rewards, incentives, or recognition allows you to recognise positive behaviours and results that benefit your company. Organisations also have a responsibility to demonstrate ethical and sustainable practices. Companies should strive to positively impact the environment and society while achieving their core business objectives.

Rewarding staff

Showing appreciation can be incredibly powerful and help create a positive and supportive working environment. There are many ways to show your appreciation for your employees and recognise their hard work, even when budgets are tight. Employees view non-financial benefits such as verbal praise or recognition during team or company meetings, gestures such as a handwritten card or gift, or something as simple as a thank-you email or a public acknowledgement of an employee's contribution to a task or project. In the current climate, it's also important to consider how to deliver recognition remotely to ensure it remains personal and meaningful.

Recognition can come from department heads, peers, customers or the managing director. When rewarding an employee, ensure that you are clear about why you are recognising them so that you can reinforce behaviours that led to the successful outcome and encourage others to achieve a similar result. Rewards should be transparent and fair; the level should correspond to the performance you want to recognise. 

Recognise individuality

A great way to effectively recognise and reward your employees is to provide them with learning and development opportunities. You could offer an online course, ask them to attend a seminar, or provide access to a resource library. By allowing your employees to develop their skills, you are showing them that you value their contribution to the business and are investing in their growth. Publicly acknowledging your employees' achievements shows that you are committed to their success and appreciate their hard work, which will, in turn, strengthen their commitment to your organisation.

Say thank you

A simple thank you can motivate employees, make them feel appreciated and valued, and helps to build a strong sense of team and community.

Social media

Social media platforms vary in complexity but allow users to reward employees with tangible rewards, such as gift cards or non-tangible rewards, like badges and points. You can also share recognition across the organisation via a news feed so everyone can get involved in the celebration. By making recognition part of the work culture, remote and hybrid teams can also feel appreciated and motivated.

Career progression 

Employees can develop plans to reach their career aspirations by providing clear milestones and expectations. This will help them stay motivated and engaged in their work while allowing you to reward outstanding contributions, invest in their future and acknowledge their accomplishments. 

Challenging tasks

Whilst promotions can boost morale and help employees feel more valued and appreciated by their employer, it can be more motivating for some people to focus on challenging projects or expand their skills and experience. Working on projects that are meaningful or that offer an opportunity to learn new skills can be highly motivating. They can be just as beneficial for an employee's career.

Merit-based promotions

If you cannot offer a pay rise, you can still acknowledge an employee's success through merit-based promotions to ensure that you maintain engagement, reputation and retention. Promotions can come in the form of additional job responsibilities, mentorship opportunities and public recognition. You can also offer other financial incentives such as bonuses, stock options, and additional vacation days. In addition, you can provide other forms of support to help employees reach their professional goals, such as additional training, tuition reimbursement, and flexible work arrangements.

Learning and development 

You can provide employees with development opportunities such as onsite seminars, online training courses, in-person workshops and conferences, or even an opportunity to attend a specialised training programme. You can also create a rewards system that incentivises learning and development by providing bonuses, special recognition, or additional vacation time for those who complete specific courses or training. 

Consider creating a culture of learning and development by encouraging employees to share their knowledge and experiences at seminars, webinars, or even informal lunches. By encouraging employees to share their knowledge, you are creating an environment of learning and development that can increase engagement and productivity.

Flexibility 

Many of your team might already have experienced remote or hybrid working. Consider rewarding top performers with flexible working hours such as work from anywhere, flexible leave, compressed working schedules and job sharing.

Additional annual leave

For many, additional time off to spend on social or leisure activities or with family and friends can be rewarding. Top performers could have long weekends allowing them to rejuvenate. With this extra time, employees can focus on their mental and physical health, cultivate skills, or explore new interests. In addition to offering extra time off, companies can provide more flexible working hours and an option for occasional remote working. This allows individuals to create a work schedule that works best for them. A study conducted by the University of South Australia and the University of Wollongong found that flexible working conditions positively impacted employee engagement and productivity.