Dear Adecco: Small Business Owner Tips #3 – Total Compensation
If you’re a small business owner, you know how costly it can be to offer your best staff members the kind of total compensation they deserve. But all is not lost. Even for the smallest of businesses, there are other forms of compensation far less costly – and more effective – than cash that can help you retain your top performers, and we explore these alternatives in our third installment of Dear Adecco.
Remember: Even though the exchanges in this series are contrived, they address very real concerns that many a small business owner and supervisor think about every day.
How a Small Business Owner Can Offer Total Compensation
My question is a quick and simple one. Being a small business owner, I’m not able to afford the kinds of competitive compensation packages larger companies can afford. I have some great people on my team, but I’m constantly worried about them leaving me to work for the big guys who can throw more money at them. Do you have any tips for me on how to make sure my employees stick around despite more financially rewarding opportunities out there?
Who says your budget is all there is to providing a rewarding compensation plan for your employees? Studies show that as long as people feel they’re making enough to afford what we might call a middle-class lifestyle, more money has its limits as a motivator. So long as your employees don’t feel underpaid, meaning they’re paid significantly less than the market value of their positions, there are other forms of compensation you can offer that will help ensure their loyalty and sense of fulfillment. Our advice to you is to include implementing a performance-based bonus plan. In fact, in the early stages of your company, bonuses are a great way to incentivize your team to make the company grow. The more they do for the company, the more the company does for them. This dynamic helps employees feel that they’re part of a movement rather than just part of a company, making them truly care about the welfare of your business.Recognition is also key to ensuring the loyalty of your employees – but that doesn’t necessarily mean more cash. When you acknowledge a high-performing employee with an award or with special training for a higher position in the company, you’re conveying a level of appreciation – and earning a degree of loyalty – that money can’t buy.