Many factors contribute to running a successful business. Your employees’ satisfaction and wellbeing should be high on that list. Investing in your workforce is a great way to boost productivity, cut down costs, and maintain a good level of quality.
There are numerous ways to invest in your employees. One way would be to offer them a raise, but another would be to give them various benefits. Here’s how that works.
Rewarding Good Work
At a very basic level, your employees exchange their time and skills for monetary compensation. The money they earn by working is often the main driving force behind the effort they put in when they clock in for work every day. Although raises are a must in any industry, there are other ways to improve employee retention and show them that you care about them as their employer.
That being said, how you employ benefits can make all the difference in the world. Depending on the size of your organization, managing benefits might be a task best suited for mid-level management.
Offer the Right Incentives to the Right People
If you head over to payroll and ask them to pull up the list of employees, you’ll get a bunch of names and numbers on a piece of paper. Behind each of those names is a person with their own unique set of needs, wants, and character traits. Understanding this will also help you, or your managers in finding the best way to stimulate an employee through benefits.
Time as an Incentive
Benefits come in all flavors. That being said, time is arguably one of the best employee benefits of them all. Giving your employees free time is a great way to let them recuperate, especially after completing an important project. Just like head coaches know when to pull their best players off the field for a break, you need to know when to give your employees a breather.
The gift of time comes in many shapes as well. You don’t necessarily have to give your employees a day off. Working from home is also a great way to reward good results. It’s a decent compromise for both parties.
Cash Bonuses Over Gifts, or Vice Versa?
Whenever benefits are discussed, two distinct factions quickly form on the opposite ends of the table. On one hand, you have those who feel that cash bonuses trump any gift idea you could have as an employer. On the other., there are those who feel that gifts have a personal component that helps build a bond between the employee and the management team.
The truth is that both of these factions are right. However, it all comes down to what kind of business you’re running and what your employees prefer. With that, we’re circling back to the importance of knowing your employees. It’s all connected.
Use Benefits to Build a Stimulating Work Environment
Every organization is a team, and teams are full of competitive people. Benefits and perks can be used as a great stimulant to drive competitive people toward a specific goal. Here’s a good example. If you’ve had an employee put in extra effort into completing a task, reward them with a bonus. Encouraging and reimbursing courses like CSM certification serve as a win-win situation for both parties.
However, don’t do it behind closed doors. Use the age-old rule of running a business – offer praise in public, but criticize in person. Doing this achieves two important goals. For one, you’re giving your employee the spotlight, making them the person of the hour in addition to giving them a nice bonus.
More importantly by awarding benefits and praising your employees in public, you’ll stimulate others in your team to work harder. Naturally, it’s important to find a good balance. You don’t want to create an environment where your employees will start tripping each other for the sake of earning those benefits.
The last piece of advice we’d like to share is to be creative with your benefits. No one knows your employees better than you. This gives you the unique ability to come up with customized benefits packages that will match your team’s pace and character. Be the type of leader who puts in the effort to get to know their subordinates.
Not only will your employees see this and recognize your efforts, but you’ll create a much better, healthier work environment. At the end of the day, that’s the only way to improve productivity, efficiency, and achieve the level of growth necessary to keep the company moving forward. Use these tips as pointers, but make sure to do your research as well.