It’s not about the money: Six ways to reward and motivate your people without breaking the bank

Recruitment is tough right now. The so-called “war on talent” is creating multiple challenges for employers, and many companies are struggling to attract and retain great people. In this article, Portfolio People Director Vic Foster offers insight into the current recruitment challenges that businesses are facing, and gives six approaches to reward, retain and motivate your people.

As an employer, it’s time to take a look at whether what you’re offering is attractive to candidates, and how to maximise your offering to secure the best talent out there.

Rising salaries can be a challenge. Offer a raise to one person, and other colleagues will want to know what’s happening to their pay. The knock-on effect, coupled with rising inflation, could seriously impact your business costs. Equally though, losing a valued person because you’re not willing to meet their increasing salary expectations could cost you more in the long run, when you look at the cost of replacement.

But maximising your offering to employees isn’t just about salary. Obviously salaries have to be competitive, but it’s not the be-all and end-all of your proposition as an employer. Here are some other ways to make yourself more attractive to employees:

1. Offer flexibility…

Time is now seen as an increasingly valuable commodity. People want to be able to spend time doing the things that matter to them, with family or following their interests. Increased holiday, family-friendly hours and a degree of flexibility are increasingly prized, and in some cases, expected, by employees.

The pandemic has shown that working from home doesn’t necessarily impact productivity, and in some cases can actually increase it. It has also accelerated an existing trend for remote and hybrid working, which has rapidly become a baseline expectation for many. A growing number of UK companies are currently trialling a four-day week (with no loss of pay); again, data from other trials are showing an uptake in productivity and performance. While this may not suit every business model, a degree of flexibility and trust in your people can go a long way, so find out what flexibility means to your people, and be prepared to act on what you find out.

2. … good benefits…

Pulling together an attractive benefits package is a great way to attract and keep people in your business. Health insurance, life insurance or income protection are valued by those with loved ones to look after. Fitness classes and/or gym membership helps those looking to improve their health and wellbeing, and a season ticket loan can make commuting costs more manageable. I’ve even seen companies operate a electric car purchase salary sacrifice scheme, with on-site charging points to facilitate use. Again, choice is vital, so talk to your people, canvas opinion, and offer a range of benefits that will genuinely be appreciated – it really isn’t always about the money.

3. …and training opportunities

Having the opportunity to develop skills and gain qualifications are a huge incentive for many people. Government apprenticeships have made this easier and more affordable for employers to offer to staff. Research has shown time and time again that people who are offered scope for development, in terms of skills as well as personal or leadership training, will usually be more motivated and committed than those who are not given the opportunity to progress.

4. Show you care

It’s important to show how much you value your people, both when recruiting and once employed. Show that you value the work they do and that you take staff welfare seriously. An employee assistance programme, for example, can give staff access to support that you might not have the resources to provide on-site. There are many options available for employee reward and recognition programmes – sometimes, it’s simply about building appreciation, celebration and reward into everyday conversations, but be prepared to demonstrate that appreciation and care in tangible ways.

5. Increase your ‘feelgood’ factor

How does your company fare when it comes to the environment and social responsibility? Can you improve it? There has been a reprioritising of values in recent years and more people want to work for an organisation that’s focused on making the world a better place. They’re also more likely to scrutinise their employer’s ethical credentials with a critical eye so beware of empty claims or “greenwashing” – it can definitely backfire if you’re not prepared to back up your claims in action.

6. Shout about it!

You may well have a fantastic culture in your workplace – but does anyone else outside the business know about it? Make sure it’s all in evidence on your website, in your recruitment application pack and in your job adverts. Sell the benefits of working in your business to current and future employees. Your people should be your biggest advocates – so give them a reason to fly your flag.

People Puzzles can help you attract and retain the best candidates by showing your business in the best light to current and potential recruits. Contact us to arrange a free 30-minute video or phone call with one of our regional experts to explore your needs.

Vic Foster, People Director