How to Reward Your Best Employees
The most important asset a business has is its employees. That’s where your focus in terms of investment should be. It’s imperative for a business to reward its best employees early on and to show them that they care about their contributions.
This is something even the smallest of companies can do since its rarely about monetary compensation and mostly about showing that each employee is a part of the team and that they are appreciated for what they do.
Here’s how to do it:
The first and the simplest answer to this question is simply money. The employees are usually working for salaries, and you can show that you care about them and that their work is beneficial using that salary. Bonuses are the most common way to go, but you could also increase their salary based on the effort they are providing.
Have in mind that from the employer perspective, there are additional expenses that come with this other than the salary itself. When you increase the employee salary, you’ll also need to pay more on taxes and on the national insurance contributions that are related to the salary.
The second and equally important way to show your employees that they are doing well and that they are appreciated. This is done by letting them have more paid free time. There are 3 ways of doing so. The first is to provide more vacation a year, and that’s what most people do.
It’s also possible to provide more free time in terms of working fewer hours or having one day more a week free. In the end, the third way to do it is to provide time-off when the employee needs and when they are feeling overworked.
Another more complicated and long term way of rewarding the best amongst your employees is to provide shares for them. That means that they become owners of the company up to a percentage and that they get the dividends on the profits made by the company based on how much shares they own.
This is usually done based on the time the employee has spent with the company rather than their performance or how much they bring in. This is a way to promote loyalty and long term relationships within the company.
All of the items we’ve mentioned so far are material and tangible ways of rewarding the employee. There are others as well that often get overlooked because they are not something you can measure and divide amongst the employees equally. The most important of these is appreciation.
It’s important to let the employees know that they appreciated by the company and that their hard work is being noticed and valued. There are two ways to do so. It could be done publicly so that everyone knows which employees are getting additional attention. The second is to do it in person with each employee.
Another one that’s more similar to the previous way than the ones mentioned before – is to give out perks to the employees you want to help out. These small perks used around the office serve two purposes at the same time. Firstly, they are making the office life a bit easier, and second, they show in a public way that the employee is being appreciated.
These include the ability to have flexible working hours. They could also work some days from home or use the company gym. Parking spots and good offices are usually sought after as well.
In the end, there are also promotions as a way to prove that this is the employee that could go places. It’s a rather useful way to make sure that the people in an important position in your business are the ones that know how to do the job and that have risen through the ranks of the business.
However, you should keep in mind that promotions could also create problems amongst the ranks because it’s not easy to figure out who deserves to be promoted. The key is to keep the process transparent and give everyone an equal chance.
It’s important for the business to be able to reward its best employees since the employees are its most important asset. There are many ways to do so, and you should choose the one that’s suited both to your employees and your budget since both are important.
You could always start by paying the employees more money, but that’s not enough. Perks and appreciation are equally useful as well as the chance to get the share of the ownership for loyal employees that have been with you for a while. It’s important to plan this as a company and as a team.