10 Ways to Reward Employees in a Downturn

Tight budgets mean little extra money for bonuses and big raises to reward and motivate employees. Fortunately, money isn’t the only way to acknowledge your employees’ excellence. Here are ten rewards that work as well—maybe better—than dollars:

1. Find special assignments. Offer employees, not more of the same work they do daily, but interesting, challenging new work—maybe even some of your own responsibilities—that will stimulate them.

2. Offer opportunities for high visibility. Gen Xers will especially appreciate this. Everyone wants to be acknowledged for doing a good job. And all it takes from you is to offer praise publicity—say, in staff meetings or via e-mail messages that tell key personnel of the individual’s accomplishment. This technique is free, easy, and well received by everyone.

3. Give time off. Time away from work to take care of personal business or spend a little extra time with friends and family, or just stay at home and watch soap operas, is another great way to recognize employees. It doesn’t matter if it is a few hours or a full day; the opportunity to get away from the stresses of the office makes it a valuable reward. Those who get time off will return refreshed and grateful for the recognition that they received.

4. Share information. How is the company doing? What about the department? What about Project X? It may seem absurd to suggest that sharing such information will make employees feel more valued but that’s very much the case. You want to know as much as possible about what’s happening in your company. Likewise, so do your employees. Sharing what you know not only will make your employees able to make better decisions but also demonstrates to them that you value them.

5. Provide feedback. We get so wrapped up in day-to-day routine that we forget how important it is to our employees to know how they are doing in their jobs. Ask them to join you for lunch, then ask them whether they have any questions or need help with their work. Provide them with feedback on their performance. Praise them for doing a good job—don’t wait for the next quarterly review. Use this and every possible opportunity to let them know how they are doing so they are better able to respond to your needs and to the needs of the department.

6. Make employees partners. Involve them in decisions that affect them. Doing so demonstrates that you respect their judgments. Besides, your employees are closest to the work and in the best position to see solutions when a problem arises. So the insights they offer can have a huge benefit for you, if you listen to them.

7. Empower them. Let your employees do the work the way they see fit. Don’t hover or over-control. Rather, give them the independence that their work demonstrates they deserve. Provide them with the necessary training and then give them the room to decide how they get the work done. It’s a further step in making employees feel like partners in achieving the corporate mission.

8. Celebrate their successes. Whether you provide donuts and bagels in the morning, or pizza or cold cuts at noon, call a break from work to celebrate individual and group achievements. Your employees will appreciate the recognition and you will appreciate the loyalty that comes in return.

9. Provide flexible work hours. Some jobs just can’t be done at home but there are many that can. Give employees flexibility in deciding their own work hours and their own workplace. It can be very motivating.

10. Increase employability via training. In today’s times, you can’t provide job security but you can offer career security via training to keep managers and employees abreast of latest management and technological skills and developments. You’ll see a return on investment in subsequent job performance—and the employees' commitment to you as someone interested in their professional development.

For more information on motivating and rewarding employees:

AMA offers a number of leadership and management courses on building staff productivity and morale. Motivating Others: Bringing Out the Best in People addresses the issues discussed in this article.