No Money, But Still Want Employees Happy?

Work is more than just receiving a paycheck. We spend a lot of time at the workplace, so working in a good environment is important. For companies that do not have the means to reward their employees monetarily, they should acknowledge their employees’ contribution and make them feel that the company’s success is a group effort.

The article referenced below somewhat plays down the impact of giving out bonuses because people have short memories and so the impact of bonuses will not be felt long-term. Many companies use bonuses, however, as an incentive to reward better performing employees. Why not? Why should everybody be treated equally? If someone does better, shouldn’t that person receive more? And won’t that also be an incentive for others to get going? In addition, bonuses are flexible and can be adjusted annually depending on the profitability of the company. There is a slippery slope however when bonuses are used as a substitute to acceptable pay increases, meaning that a company or firm uses the excuse that it already paid out a big bonus as a reason to only bump the salary slightly. Bonuses, as opposed to base salary, are not cumulative. In other words, salary increases add to your previous year’s salary, whereas a bonus has a “fresh start” every year.
All that being said, money is still very important for many people. Many companies waste money on little things that are often useless. If they could only save where they can and spend where it matters, meaning by increasing their employees‚Äô salaries, that would be appreciated. It is very frustrating to be employed in a company where you see money wasted on useless things and to hear at the end of the year that you won’t get a good raise because of “money crunch.”
How to Reward Employees When Money’s Tight, TheStreet.com
Article courtesy of WorkBloom, an employment blog incorporating a comprehensive career resources section, including the largest database of professionally written resume and cover letter samples on the Web.