When you think of the payroll expense that represents your population of employees, do you first consider that amount of money primarily; a) a necessary cost to the business, or b) as an investment in business success? I've heard both phrases used, usually along the lines of a glass being either half full or half empty. It's all about how you look at the same figures. How much do you value the employee contribution being paid for, or is the expense a necessary evil that should be cut wherever possible?
This isn’t a trick question. It’s a legitimate response to say that you value your employees, while at the same time you want to minimize the associated cost to the company. It’s all about being effective and efficient. You need a balanced program that provides, 1) the right reward, for 2) the right employees, and for 3) the right reasons. Have a care though, because if you miss one, you’re wasting money.
In this article, we’re going to take a closer look at the first consideration.
The Right Reward
What do you count as a reward for employees? Cash of course, and hopefully at competitive levels. Incentives too. But how about a subsidized cafeteria? Or tuition reimbursement, an on-site clinic, a credit union, or perhaps product/service discounts? Ask yourself, what other programs, policies or initiatives are either provided or available to employees in your organization that help make the working environment a more pleasant place to be for so many hours a week?
The list of possibilities is almost endless.
How many of these somethings being offered within your organization bring a smile to your employees? Find out what those goodies are because those become a reward for working there.
Initiatives don’t have to be large programs, or expensive offerings; just “something” that is meaningful to the employees. Cash may be king, but it will never be enough.
Look Beyond Cash
Every organization is different, with myriad characteristics, infrastructures, management bias, ingrained cultures and degrees of financial strength, so it’s hard to point at any one reward item and say, “do this.” But if you presume that cash is not always going to be available, or enough, try something else as well.
- Benefits: Not just the core programs (medical, dental, life, disability, etc.) that almost every organization provides these days, but perhaps there are other initiatives, whether funded by the company, the employee or a split, whose offering would be appreciated. My wife still remembers the job where I was able to buy her roses at work or take care of our dry cleaning needs from my office.
- Work-Life: Do you expect your employees to maintain a “live to work” or a “work to live” mindset about their job? It matters. Look at your PTO policies, remote access for employees, job sharing, or simply the ability to periodically work from home. Do you believe in the priority of health, family, job? Are you in the habit of asking employees to change or forgo their vacation plans?
- Performance & Recognition: Everyone wants to be recognized for their efforts, be it in the form of money received, public appreciation in front of co-workers or simply a handshake with a sincere “thanks.” Avoid giving recognition and some employee attitudes might shift to “why bother?” Paying someone well but then otherwise ignoring them presents a problem by itself.
- Development & Career Progression: No one wants their career to be years of treading water in the same position, but instead they want to be challenged and allowed the chance to work toward something greater. Give them an opportunity to advance themselves before they decide to go elsewhere for a better job. Let employees grow with you, versus with someone else. This is especially true for your high performers, who will always have options.
The value of rewards is in the eye of the beholder – the employee. If I have an opportunity through employment with you to gain something that I value, then that "something" is a reward. Granted, my hot button may not work for you. You may have your own somethings, and they could coincide or differ with my own. Such is the strength behind the Value Proposition - which has morphed into a cafeteria-style menu of reward and opportunities.
Don’t be like the manager who feels that a well-paid employee can be ignored or taken for granted. Unless you enjoy having to fake smiles at employee going-away parties.
Chuck Csizmar CCP is the founder and Principal of CMC Compensation Group, providing global compensation consulting services to a wide variety of industries and non-profit organizations. He is also associated with several HR Consulting firms as a contributing consultant. Chuck is a broad-based subject matter expert with a specialty in international and expatriate compensation. He lives in Central Florida (near The Mouse) and enjoys growing fruit and managing (?) a clowder of cats.
Creative Commons image "Torn & Cut One Dollar Note," by photosteve101
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