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It's a battlefield out there. The traditional weapons of more money and increased benefits are no longer enough to win it. The battle is being fought over new and innovative ways to motivate, reward and retain employees. The battles are being won by break-the-mold and throw-out-the rule book folks who understand their employees' priorities and have instituted unique employment practices to address them. The result has been a dramatic reduction in annual turnover and a much more involved work force in the business of the company.
Many of these may not fit the companies we manage today, however, they may give us some ideas for things that will. All that's needed is creativity and the willingness to try new things as well as the all-important mind set that our employees are not a cost, they are an important investment opportunity. Here are some things to consider:
- In the past two decades, millions of women have entered the workforce and are struggling to balance the rigors of both a job and demands at home. Recognizing this, employees at a packaging company in North Carolina can take their laundry to work and have it washed, dried and folded courtesy of the company. They get all this for the cost of the soap.
- A soft drink bottling company offers its employees the opportunity to use an on-site dry cleaning facility. They also offer personal financial counseling for about $20 a month.
- A service company in Chicago will arrange to have someone at an employee's home when the cable company representative appears. They also send someone to pick up an employee's car that is in the repair shop. This service is also available for other errands as well, which relieves employees from worrying about them during the workday. Another variation on this theme allows a handyman on staff to help out with minor repairs at an employee's home. If materials are needed, the handyman purchases and installs them. The employee repays the company on a very affordable monthly payment schedule.
- An electronics company encouraged its supervisors to get to know their people very well. One of the payoffs from this policy recently occurred when a truly outstanding employee, whose contributions were above and beyond, had her family kitchen remodeled at company expense. Another employee received a washer and dryer for a job well done.
- One of the advantages of being a small company is that it is easier to make employees feel appreciated and part of the team. In some small companies, the president has a regularly scheduled breakfast with different folks in an informal environment to discuss how things are going. No other supervisors are involved in these get-togethers, making them an excellent vehicle for feedback and discussion. Companies whose long-term survival depends upon building strong bench strength among their key people have educated themselves on the intricacies of base pay, bonuses, options, deferred compensation and other things that match monetary rewards to employee needs.
By now, some folks may be saying, "This sounds great, but money talks." Think about this. Many families have two income earners. This can put them in a tax bracket that whittles away at that annual increase to a point that it only represents a few hundred dollars a month to the recipient. Hardly a bang for the buck! Rolling that increase into a combination of services to an employee can have a significantly greater impact on the longevity of that person.
Now for the bad news. The IRS has some specific rules that deal with the items listed above, and those rules change from time to time. So it's a good idea to run your ideas past your tax advisor. It is a little more work, but it's like the old oil filter commercial used to say, "You can pay me now or pay later." Translation: Pay for the ongoing care and motivation necessary to retain employees or pay the really big bucks to replace them. You decide.For more GreenSearch PeopleSmarts® articles click here.
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