NFIB

How to Reward Employees Without Breaking the Budget
04/ 09/ 2002


Everyone likes to be rewarded. The very definition of a reward suggests that the person is special and is receiving recognition for being better than expected. Rewards make people feel appreciated instead of being taken for granted. Workshop contributor Edith Helmich helps you ensure you're recognizing your employees...without breaking the bank.

It doesn't take an expensive employee survey to realize that people who feel appreciated for doing a good job -- continue doing a good job! The catch is that rewards can take a big bite out of small business budgets. One of the cost-effective approaches to planning a reward system for employees is to fluctuate between no-cost, low-cost and substantial-cost rewards, depending on the situation. Substantial-cost rewards are easy to identify, and usually include extra money or paid time-off. More difficult is identifying the no-cost and low-cost rewards that are meaningful to employees.

Every business is different and offers unique possibilities for no-cost and low-cost rewards. The list that follows will not work for every business, but should generate some creative thoughts that are worth including in an employee reward plan:

Have business cards printed for each employee.

Place a big bowl of popcorn/candy/cookies/etc. in the break room one day a week.

Use pictures of employees in newspaper advertising or feature employees in television commercials.

Provide a traveling, oversized, pin-on badge for Employee of the Day/Week/Month.

Reserve a parking space for the Employee of the Month with a slot for the employee's name.

Cook or serve (management staff) an appreciation breakfast or lunch for employees once a month/quarterly/yearly/etc.

Give each employee a blank thank-you note to send to someone at work.

Create activities that recognize the individuality of employees. For example, place a map of the state (or nation) on a bulletin board and highlight where various employees were born. Post childhood photos around the edges, connected to the birthplaces by string. After several days, reveal the names for each photo.

Write a profile of a different employee each month: name, job, family, hobbies, likes and dislikes and other interesting information. Include a photograph taken on the job. Use this for a newsletter, bulletin board, framed wall announcement, etc. Present a laminated copy to the employee as a keepsake.

Celebrate each employee's birthday with a cake to be shared with co-workers.

Post a calendar that features an employee appreciation quote for each day or month.

Set up a "Celebration Table" and provide appropriate greeting cards for birthdays, new babies, weddings, new home, etc. so that all employees can sign. At lunch or break-time, provide snacks and coffee.

Remember that one of the virtues of a no-cost or low-cost reward is that it can be distributed lavishly and frequently. These rewards honor employees by telling them that they are valued and worth special treatment. Small companies have an opportunity to personalize employment in these ways far beyond what is possible in a larger company.

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