How to reward employees - in ways other than salary

[bubble2bubble]

We some great employees we would really, really like to keep. After some difficult times, including having to dismiss one of their colleagues for theft, we genuinely want them know they are valued, corny though that may sound.

We pay what we consider a decent salary and I keep an eye on what similar jobs are paying and make sure we stay ahead

We would like to do something else that doesn't involve hideous tax implications for them - are company cars now just not worth it? company mobiles? does gym membership have to be declared for tax?

I haven't asked our accountant yet, but wondered if any had any experience or ideas?

Flexibility is worth its weight in gold.

Duvet days and extra holiday would be a winner for me.

I agree holiday and flexiable working - really make the difference in an employer - above statury maternity and parternity leave also appriciated as - ad hoc bonuses also good - I think if every year - or a really complicated performance system it doesn't help - my DH's work they just announced it had been a really difficult year and everyone got 400 pounds -its taxed of course but still very welcome
I would NOT want a trip away with my collegues - pain for child care and however nice my collegues are not sure an eforced holiday is a great idea

Also better than average redundancy packages which build up with length of service keep a lot of people in jobs that they might otherwise leave.

Having gone away and had a think, ime there are a couple of things that are worth so much more than usual rewards (although that is the question asked so what I answered originally).

Flexibility has already been mentioned and my own research has found that organisations who appear to offer flexibility (NB the use of the word 'appear') and have a 'good culture' led to higher instances of retention after maternity leave. Maternity benefits like occupational maternity pay made no significant difference to retention rates after maternity leave (but they may have other benefits - recruitment for example. I didn't look at anything outside of maternity leave in that study). I think that's interesting.

But the things that make the most difference in my experience are that an employer is seen to be fair; that they are seen to tell the truth; that they are looking forward and planning for the future so everyone knows what they are doing and what is expected of them; excellent local management and performance management; and that there is potential for career development. Career development is what keeps your talent and good treatment is what keeps your core performers who allow you to develop your talent so good performance management is really key.

Incentive schemes are quite a common part of reward schemes in many industries but they can also be divisive and encourage behaviours that actually harm the business if not designed and managed properly.

As for your individual organisation, factors such as size, organisational structure, job roles, career opportunities, existing rewards all have an impact. Do ask your people what they think. I've seen organisations who think a "family fun day" will heal all their issues with a poor culture and hostile work atmosphere - but those are always onto a loser if there's no buy-in from staff and no good will - it can become yet another thing to focus frustrations on.

Have you thought about using a consultant to investigate options and gather information from employees about what will/won't work? It doesn't need to be a big project. You could probably get away with doing it over just a few weeks if your consultant works smart. If the organisation doesn't have someone with the right skills buying some in for a short period and getting it right can be more cost effective than doing it in house and getting it wrong.

I have experience of going into a team that has been treated quite badly and very poorly managed including after a dismissal for theft so you're welcome to PM if you want to know some of the softer stuff I did to build the team back up and they did become a top performing team and I'm still very proud of them all.

Forgot to say that whatever you decide to do, as well as good communication of the scheme you must ensure that it is possible and it is consistently delivered. For example, duvet days are great idea but if you run a business that is customer facing with customer facing hours of business then you need to make sure you have enough staff to open and service those customers. If 3 people call in wanting to take a duvet day you cannot honour them all and it will just piss people off and stop them believing anything you say.

Good luck whatever you decide to do.

I'd add that you need to be seen as being fair to all - flexibility is great for parents but you need to offer it to all - they might find it helps with pets/vets, garages etc for those who aren't parents or whose children are at different stages and don't need the flexibility as much

And based on what my employer has fond recently ....

Don't remove or worsen pensions
Don't cut expenses policies so as to be seen to be penny pinching (eg no longer allowed lunch when away from office, must deduct usual commute from any mileage claims ( at minimum fuel rates in any case)
Don't increase 35 hour contracts to 40....
Don't monitor how long people are away from desk for toilet/smoke break unless there is a specific problem
Don't have different policies for people is same building but different parts of same company ....

I just got back from a trip to Canada. They have every other Friday afternoon off during the summer. They have to make the time up in the week but such a great idea. I would love it..

Flexibility is the best thing about dh's job. They have core hours that they have to be at work eg 10 - 4 and have to work a 7 1/2 hour day. They can make the rest of the hours up whenever they want as long as they do them.

They can also work an extra little bit each day to build up to a specific day off once a fortnight as long as they are not too busy. They have found it has to be a specific day when everyone can do this or they were in chaos.

Dh also gets a subsidised lunch and a card with a lunch allowance on it every day he turns up to work.

There is fruit available within the office, free to whoever wants to eat it.