How to Motivate and Retain Employees In Tough Economic Times
Most businesses recognize that people are their most important asset, but in tough economic times it's the financial incentives and motivational programs that often get cut first. Nonetheless, it is still important to remember that no matter how good the product, how innovative the technology or how necessary the service, it's the people in your company who ultimately determine your success. Bottom line: your business is only as good as your employees.
So what can a business do, despite the economy's downward slide and tight budget circumstances to motivate employees and keep them focused and on board?
The Employers Council, a private, non-profit human resource management association, has a few suggestions that may help. The Council advises its 500-plus member businesses to invest a little time and effort into searching for ways to motivate employees without lavish spending. The Council suggests the following steps may help businesses increase employee motivation and retain their best employees:
Step 1: Ask employees what they want
The first step is to do your research. Talk to your employees to find out what motivational programs they value and eliminate the programs that turn out to be unpopular. Be honest with your employees. Let them know where the company stands financially and ask them for creative ideas that will help motivate them at work. The company and the employees need to be aligned.
Step 2: Improve the work environment
The second step is evaluating how you can improve the work environment for your employees. Rearranging working practices, breaks and job roles is one inexpensive approach and may be just what it takes to motivate your workforce. Adding inspirational and motivational phrases to the office may also help. Even simple steps like having the office thoroughly cleaned or replacing a broken microwave can go a long way toward boosting employee morale.
Step 3: Empower employees
The third step is to empower your employees. Get your employees involved in making decisions and generating new ideas. By empowering them you create an ownership mentality. Employees will start asking themselves, "Will the work I do today turn into a good product tomorrow?"
One idea is to establish a program where employees spend a specified amount of time brainstorming ideas about how to make the company successful and improve performance. The ideas are judged by top executives and those that are implemented receive recognition from the company president and a spotlight in company newsletter. If the results of an idea are measurable and quantifiable, the employee can be rewarded a percentage of the cost savings.
Such a program may generate many ideas from your front-line employees, which would truly create an environment of creativity and improved performance.
Step 4: Give them the choice
Offering your employees different types of rewards or incentives may have higher personal value for them. For example, one choice could be to work with senior management on an important project, or the opportunity to learn a new skill. Another option would be to establish a reward point system and let employees help determine the various levels of awards. Every time employees do something well they would be rewarded points. Employees could cash out the points they earn at the end of each quarter for different types of incentives. The key is to remember that each employee is unique and has a different set of motivating factors.
Step 5: Recognition
Recognize your staff for doing a great job on a particular project. A sincere thank you can go a long way. When you know an employee has worked extra hours, bring in a bottle of sparkling cider as a thank you for the effort. From time to time, bring bagels or donuts to the office. Most employees enjoy food!
Step 6: Treat them like family
Employees need a good work/life balance. They know that they are expected to work hard, but little things do matter. It is important to be flexible. Flexibility will not only help you retain and motivate your employees, but will also help to attract new employees. You might find financial incentives to be a quick-fix solution, but they are not the end-all for every situation. Many employees would simply like to work in an environment where they feel needed and appreciated, yet they can still make it to a child's school function or get extra time to occasionally take care of personal needs. Telecommuting (on a regular or part-time basis), alternative workweek schedules, or the flexibility to come in late once a month or leave early on a Friday may also motivate and create loyalty among your employees. Remember to think outside the box when figuring out how to motivate your staff. Yes, they would like a raise, but knowing that many companies are facing tough economic times, however, they may be more open to non-traditional incentives.
