How to Reward Employees Frugally

Even in a tight economy employees need recognition or acknowledgement that they are valued by the company. Rewarding employees can improve job satisfaction, reduce turnover, and establish your company as THE one to work for in the industry.

Instructions

1. Survey your employees and ask them the type of rewards they would like to receive. Some employees prefer cash bonuses while others will let you know that money is not as big a motivator as you might have thought. Others will let you know that public acknowledgement means more to them than other forms of reward. You can use a free online survey tool to do this.

2. Use free entertainment tickets as rewards. These can take the form of movie, concert, play or game tickets. At least two tickets should be given per reward. This reward goes a long way because it can creates a positive memory (by association) for the employee about the employer if the event is good.

3. Days off. Depending on your human resource policies, you may be able to offer your employees additional days off with pay. An unexpected day off with pay is a popular option.

4. Create a public recognition newsletter or ceremony. The process of creating this in and of itself may also serve as a way to reward employees without spending much money. Select a group of employees to serve on a rewards committee. You can make the committee membership limited. Have a rotating seat that is open every six months so others have an opportunity to serve. The committee will help create rewards and select deserving employees to receive those rewards.

5. Create contests that invite employee participation. For example, have a company logo contest. Have employees contribute their ideas for a change to your logo.

Tips & Warnings

• Don't try to do everything at once. Implement one new reward every few months.

References

• Make Their Day! Employee Recognition That Works; Cindy Ventrice
• The 1001 Rewards & Recognition Fieldbook: The Complete Guide; Bob Nelson and Dean R. Spitzer