“Money talks”, as they say. But does it have to be the only conversation in town when it comes to incentivising staff?
You are sure to know that costs associated with employment are going up significantly for many employers. Chunky rises to the national minimum wage are one thing, along with the ripple effect up the wage bands. But the employer national insurance hike ensures that margins will be squeezed even further.
With the added pressure, you may be wondering how you can continue being competitive in the recruitment market, attracting good quality staff and motivating them to do well. Fortunately, although money does talk, we have a few ideas for ways in which you can sweeten the remuneration package without simply giving out pay rises.
Alternatives to pay rises within remuneration packages
Looking at your wider remuneration packages is a strong place to start. It is an innovative market with lots of ways to add value to your employees cost-effectively.
Health cash plans – These actually do put additional cash in your employees’ pockets, or at least reimburse them for the cost of medical treatments that they may typically access in a year. You pay a small monthly fee on their behalf, from just a few pounds a month, and they have allowances for things like optician and dental treatments which they can reclaim against as they pay for treatment.
It is tangible and the financial benefit is easy for employees to understand meaning it should be valued and appreciated by them. Better still, looking after your employees’ health should contribute positively to attendance and productivity.
Shopping vouchers and discounts – These are often included in employee benefits packages, and may gain your employees money off their groceries, clothes, fuel and other expenditure: again, making it a super tangible benefit that has the same effect as a modest pay rise.
Corporate gym discounts – Most local or chain gyms will have arrangements available for businesses if you reach out to them, offering some kind of discount on membership for employees.
Be creative – An employee benefits package can include whatever you are comfortable with, so consider what will be a good fit for your staff and be creative.
Financial education
Many people, maybe most people, suffer from what you could call a fear of the unknown. And with money and personal finances, no-one is really taught about it at school so there is a void which can lead to worry – unless parents or someone else has passed on knowledge and advice.
You may have seen a term coined in the press, “money dysmorphia” where people worry about shortfalls they don’t really experience, or the converse – overspend or be overgenerous with money they have not got.
Employers can actually facilitate this education. Financial adviser firms are often happy to give presentations or drop-in clinics for employees of local businesses. It may be tied in with pension provision, or more generally. The advisers will hope to pick up some clients at the same time as raising the financial knowledge base of your workforce.
The net result is that your employees know better where they stand, can save to get on the property ladder or for a rainy day, and be more savvy with their money, making it go further.
Another option in this space is an employee assistance programme (EAP). These are low-cost for employers and come with a range of expert support lines for employees to contact when needed, which may cover financial aspects such as debt advice.
A simple “thank you” goes a long way
It is no substitute for pay, of course, but making sure to thank your team for a job well done, or going the extra mile is remarkably effective. In fact, a survey of 2,000 staff by an energy supplier found that this was the top “little thing” that made a difference.
Going further here, team lunches, showing goodwill and flexibility when staff need to finish early or start late due to an appointment, even a “free” additional day of leave during a quiet spell all reinforce your show of appreciation. Just remember to do it fairly. If you stick to certain rules (like under £50 and not as a reward for performance, among other things) employee gifts count as trivial and can be tax/NI free.
Here to help with all aspects of employment
From recruitment to retention and retirement and redundancy, plus everything in between, we are here to help SME employers manage a successful team. If you would like help with any of the above, or another employment matter, please contact us.
