In the current challenging economic climate many businesses may be unable to award their staff a pay rise or bonus this year; hopefully most employees will realise that this is a result of the credit crunch and not their employer taking advantage of the recession.
With fewer jobs on offer employees will be less likely to ‘chuck in’ their job than in more buoyant times; but unless they feel that they are appreciated as soon as the economy picks up they may well leave, just when your company really needs them.
To maintain the trust of their employees through these trying times management will have to be honest and upfront with their staff; most of whom will respond by doing their upmost to ensure the survival of the company.
Money alone does not buy the loyalty of employees; according to CIPD (Chartered Institute of Personnel Directors) research those working in the charity industry are amongst the most motivated and loyal workers, despite receiving lower salaries than those in equivalent positions in the private sector. People wish to feel needed; they want to feel that they are doing an important job and that their efforts are recognised.
Surveys by the CIPD have found that employees who enjoy ‘non financial benefits’ are most likely to stay with their employer.
Here are some low cost/no cost ways of rewarding your employees:-

• Flexible Working – this may help your staff to minimise any child care costs – it is also a legal requirement that you should seriously consider any employee’s request for flexible working if they have children under six years old or any children under eighteen years old with disabilities.
• Career Development – This does not have to be external/outsourced expensive courses; you could consider giving senior staff the responsibility for running training sessions to develop less experienced colleagues.
• Salary Sacrifice Schemes - these involve the employee sacrificing a part of their gross pay in return for their employer providing a benefit. The employee saves PAYE tax and both the employee and employer save N.I.C. (National Insurance Contributions). Some employers pass all or part of their N.I.C. savings to the employee. Some of the benefits can include:
o Employee Pension Contributions o Child Care Vouchers o Rail/Bus Season Ticket Loans o Bicycle Loans o Fees of Independent Financial Advice (up to £150.00 per employee)