Generally speaking, there is a relationship between employee productivity and compensation. There are other factors as well, such as lack of motivation, poor performance, dishonesty, and others, but most of these underlying causes are linked to compensation in some form. When employees feel valued, they are more productive. However, many employers can’t afford to give raises to their employees. Fortunately, there are other solutions that can help. Take a look at the following rewards to give in place of a raise.
- Flexible Work Time
There is a focus today on helping employees improve their work – life balance. In place of a raise, flexible work time can be a great motivator. You could offer flexible working hours, which allows employees to focus on a four-day workweek or work at times when they work best, or you could change the work hours. Some employers reduce the work hours from 40 to 35 per week. The key is to balance your business needs with your employees’ needs and come up with the best solution.
- Allow Remote Work
Remote work arrangements are popular with employees, and you can extend this option in place of a raise. The employee will save on commuting, lunch, and other expenses associated with going to the office. You can create ways to ensure that employees are doing their work, such as conferencing daily. Be clear about your expectations when you have remote employees. Allowing remote work can boost productivity.
- Give Extra Vacation Time
Another great option in place of a raise is to offer extra paid vacation time. You could give an extra day or come up with a plan that allows the employee more flexibility during less busy parts of the year. There are quite a few creative ways to model this, and there are examples already out there. Seasonal businesses offer more flexibility during the off season, and teachers typically work more hours for 9 to 10 months of the year.
- Offer Training
Employees can always learn more, and training opportunities help boost their skills and knowledge, but they benefit employees by boosting their resumes. You can increase team coaching and training, as well as learning seminars, online courses, and meetings. This will help your employees feel engaged.