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How to incentivize employees

How small businesses can keep employees happy in their jobs with simple incentives to prevent high turnover rates.

Small business employees get the benefit of working in an intimate environment while getting to know their coworkers on a more personal level than those working for larger establishments. But let’s face it: They also have to do more multi-tasking and maintain more flexible schedules than workers in bigger companies to keep business running smoothly without the extra costs.

So the question is, how can employers improve retention rates among hourly workers without cutting job responsibilities? We’ve compiled a few tips for small business employers to combat the high turnover rate of hourly workers and entice employees to stay put.

• Benefits are key. According to a study by Prudential, more than half of all employers with 500 employees or more say that they are highly committed to providing benefits, and if your business isn’t, you’re likely to lose out to the competition. To find out which benefits are important to your team, ask for employee input on how much coverage they need and which providers they prefer when developing a benefits plan.
• “Free” and “discount” are worth more than their names suggest. Offering employees discounts on products and services makes them feel like they’re getting a special deal that’s unavailable to everyone else. If you offer discounts on clothing, food, gym memberships or even free child care, make sure your workers know it.
• Corporate culture counts. Do you offer a casual dress code, fun company events or even a free coffee bar to energize employees? In a survey conducted by Robert Half International, one-third of those surveyed said that work environment is the most important factor in keeping an employee happy, even above compensation. Organize team-building activities or provide a free catered lunch every once in a while—your employees may appreciate it even more than a raise.

Simple rewards including gift cards or a paid day off for employees who always go the extra mile are a great way for workers to feel appreciated, and allow for qualified employees to advance within the company through promotions and raises. Also, make sure there is a sense of equality in the workplace and implement one-on-one meetings with each employee to encourage input of any suggestions or concerns your workers may have.