Employee Incentives

Keep your employees happy and they'll keep your customers happy

By Linda Formichelli, Freelance Writer

Numerous studies have shown that money alone won't fully motivate employees. Sure, moolah is important, but employees respond to recognition and other non-cash perks as well. An occasional pat on the back for a job well done goes a long way. Hiring mistakes cost thousands of dollars, so you can see why keeping your employees happy is key. Rewarding your employees helps you:

Retain the best employees
Reduce recruiting, hiring and training expenses
Foster a positive environment
Motivate your employees to give their all at work
Keep your customers happy; after all, happy employees equal happy customers

Create an employee motivation program

Decide what qualities you'd like to encourage -- punctuality, high sales volume, initiative, a high number of positive customer remarks -- and reward employees who show those qualities.
Try: Create a plan that ensures fairness, does not cause discord (as "employee of the month" programs often do), and doesn't create a sense of entitlement. Check out these tips for recognizing employees on About.com.

Just say thanks

A simple handwritten thank you card can make a huge impact on employees.
Try: At iPrint.com, you can design note cards that match your business stationery. You can also order fashionable blank notecards or thank you cards at Target. When writing the note be specific about what you're thanking the employee for and the impact it had on you and your business.

Take them away

Reward your employees with a trip away from the workplace.
Try: Organize a regular employee outing to a fun venue, such as a lake or beach. Travel America Inc. offers employee incentive travel programs; you can send your best employees to a sporting event, to a fun city like San Francisco or Orlando, or on a cruise. Bellwether Rewards offers travel rewards ranging from a hiking trip to an Alaskan cruise.

Give gift cards and certificates

Instead of guessing what your employees would like, give them gift cards.
Try: Drive or surf to a store like Barnes & Noble, Target, or Starbucks and pick up gift cards. Or buy cards from hundreds of merchants at GiftCertificates.com. If your employees commute to work, get them gas cards. You can purchase cards at your local gas station or get cards at SVM.

Whaddaya want, a medal? Yes!

Give your top-performing employees an engraved award or a framed certificate boasting of their achievements.
Try: Big Sky Awards and JGE Awards and Promotions sell a wide variety of engravable awards. Office supply stores like Staples offer award certificates that you can run through your printer.

Hire someone to do it for you

Too busy to create an employee rewards program? Let someone else handle it for you.
Try: Loyaltyworks manages your employee rewards program and lets your employees choose from a list of brand-name products and travel rewards. CorporateRewards.com offers a small business option for businesses that need only a handful of rewards at a time.

Don't overdo the rewards or your employees will start to feel entitled to Friday lunches, gift cards and other goodies.
Let your customers do the work: When an employee goes above and beyond, ask your best customers to contact the employee or sign a card saying how much the employee has helped them.
To get even more rewards bang for your buck, congratulate the employee publicly, such as in the company newsletter or on the company Web site.
The reward is a great place to work: Don't regularly overwork your employees and make sure you know you value accomplishments, not face time.