All businesses are fighting for top talent, but small businesses are especially struggling in this area. After all, they don’t always have the revenue or resources to develop highly competitive packages. As a result, employee turnover costs small businesses about $11 billion each year in the U.S., according to the Small Business Administration.
However, David Leeds of Tango, reports that non-cash incentives can help drive engagement, boost productivity and even generate loyalty among employees. Here are three key things to know:
- Non-cash incentives can take many forms: These incentives go beyond monetary compensation and can include everything from recognition to flexible work arrangements, access to professional development courses and resources, and even tickets to events and experiences. If you don’t have a big budget to work with, don’t panic! You can get a bit creative and find different ways to celebrate and elevate your top-performers.
- Non-cash incentives can help you get to know your employees: Because these rewards go beyond simple dollars and cents, you have to truly understand what your employees want and expect. This is a good opportunity for you to either run a company survey or conduct some one-to-one interviews. Ask your employees what would get them excited about coming to work every day and what would inspire them to be loyal to your business. You may be surprised how many great ideas you uncover!
- Non-cash incentives make people feel appreciated, which impacts retention: And when people feel appreciated, they create a more positive work environment, which has a trickle-down effect to other employees, partners, clients and customers. While you certainly want to save the best and highest-value incentives for your top-performing employees, consider how you can offer softer incentives to all employees. For example, recognition is free! Find ways to elevate your employees for their milestones, performance and great ideas. You will undoubtedly create some positive vibes across the business which will drive up your employee retention and satisfaction rates.
Learn More
Want to learn more about how non-cash incentives can help you foster a greater sense of purpose, satisfaction and motivation? Read Leeds’ entire article on Retail TouchPoints.
