What alternatives are there to offering a pay rise?

Posted by Andrew on July 24, 2014

For many SME's the issue of pay rises can make all the difference between turning a profit and marginal success. What is worse is when small increases that the business can afford, aren't up to your staff's expectations.

There are other ways to show staff they are valued. Thanks to Laura Hall's article in Auckland Today here are 6 suggestions to pay raise alternatives:

  1. Upskill staff by sending them on development and training courses that benefit both the individual and the business. Superior Personnel can recommend a number of excellent providers including the University of Auckland Short Courses!
  2. Flexible work hours are especially important where staff have a long commute to work (as one of our staff has at the moment) or young kids with school commitments (as nearly all our staff have at the moment). While the timings have to work for the employer as well, the benefit of a later start or finish can mean the world to the employee and make a huge difference in attitude and engagement when they are at work.
  3. Superior Personnel has long believed in the benefits of a bit of staff entertainment. Whether that entertainment is combined with clients or is a staff and partners outing or something that just involves the staff...be creative. There is almost always something around that fits within any budget. Dinners, outdoor activities......whatever it is - find something the staff will enjoy or be challenged at. In a previous role I once took staff out to Tree Adventures in the Woodhill Forest for climbing and confidence course work - we had an amazing day and it literally cost next to nothing.
  4. Bill breaks are something that works where there are some direct work related costs that maybe the employer can help with - CBD parking costs , phone bills or paying the home internet if the staff "remote in" and work from home.
  5. If staff have worked extra long hours or put in the hard yards on a project, an extra day off either side of the weekend might be the option for you. It turns a normal weekend into a long weekend and gives the staff member involved a chance to get away for a break if they wish.
  6. Ask your staff what is important to them and if the employer could help. You should exercise some caution with this one though as an unrealistic expectation or suggestion met with a "No", could lead to a bit more disappointment.

The point of the article and our comment here today is that staff engagement and retention can sometimes be achieved by means other than throwing cash at it. That said, if you are underpaying your staff for their skills in the current market, chances are they will know they are getting the short end of the deal and you are going to have to address it sooner or later.

 

We would love to hear some other suggestions you might have for non-financial pay raise alternatives.