4 things to do when a raise is not an option

If you have an employee that always shows up on time, obliterates their KPIs and is an overall high achiever, you may feel as though they deserve a raise (and they may even be hinting at feelings over their expenses or salary). However, times are financially tough, and you may not have the sufficient funds to do so, so what are you to do? Keep things the way they are until they leave for a higher paying job?

When a pay raise is not an option you need to utilise employee retention strategies, whereby you seek to retain the number of exceptional employees that work with you. Here are 4 tips for encouraging your employees so that they remain high performing, satisfied and feel that they are being rewarded when a raise is not an option:

1. Conduct job satisfaction and culture/climate surveys 
Culture and climate surveys are a great place to start and allow you to recognise what employees think is going well and what can be improved. This information will give you an insight into what your employees are thinking/feeling where you can then build your retention strategies from the results. Something as simple as providing a morning tea once a week, for example, could allow staff to feel wanted and is little perk to look forward to and cements in the feeling that the employer cares. It can also give you a feel for what relationships are working well, so that you can potentially match high performing upstarts with a mentor figure in certain projects that will allow them to grow.

2. Formally offering training and career development 

This is a great way to maintain employees as well as their progression expectations. It allows employees to view their career path at the business, and can get them to see themselves as an investment, and you as the investor. Additionally, the likelihood that you will actually be able to offer a raise in the future will increase with their training in core performance areas.

3. Offering flexible work conditions
This can include flexible work hours and working from home options, which allows employees to feel valued as their issues are being addressed and may be worth more than a raise, particularly for parents raising children or mature aged students.

4. Outsource or formalise your talent management function
For most small businesses, taking on your own Human Resources manager can be a huge feat, especially where your industry has worker need seasonality. Though achieving the same function when you need it via outsourced training and coaching programs can take a huge load off the owner / manager and make sure that employees are getting value for their time outside of  simple salary remuneration.

There are many incentives you can offer your staff other than a raise, which can still make employees feel valued and wanted at a lower cost. If your business can’t offer the same remuneration as other businesses you will need to differentiate yourselves in other forms, in order to make your company a desirable place to work, and keep your top performers happy.
Additionally, Psych Press offers satisfaction, culture and climate survey assessments that can accurately identify issues that may impede satisfaction and growth, so that you can improve the workplace as you know it and keep those top performers!