What do 4 in 5 employees prefer over a pay increase?
How does a small business compete to hire and retain the best talent when up against organisations with bigger budgets? One strategy to consider is providing employee benefits. In fact, a survey by Glassdoor states nearly four in every five (79%) employees would prefer new or additional benefits to a pay increase. In this article, we share how you can start implementing staff rewards today.
1. Ask your employees what’s most valuable to them
David Holland, COO of Employment Hero (an award-winning online HR platform) explains, “Staff rewards can be broken down into two categories: things money can’t buy, such as days off or experiences, and direct monetary benefits, such as health insurance or gift cards.”
Generally, experiences are more meaningful to Millenials, while monetary benefits are more meaningful to Generation X and older. But don’t make assumptions. “Speak to your staff and investigate what’s important to them,” he says.
2. Determine what you want to spend
Thankfully, providing employee perks as a small business owner is now easier than ever. In the past, benefits were more accessible to large organisations that had the purchase power to secure discounts at scale. But thanks to the introduction of platforms such as Power2Motivate, small business owners can give out meaningful rewards for little or no cost. Should you have budget, whether you spend $100 or $1,000 per employee is up to you.
3. Celebrate the delivery
David suggests, “Once you’ve decided what rewards to fulfil, don’t just go out and give away vouchers – make the gesture an event. You want to present and package the reward, and align it to what effort you’re recognising them for. It’s not just an extension of their salary.”
4. Measure the outcome
Get feedback from your staff, especially if the reward is an experience. How did it make them feel? “There’s no point hosting a long lunch if some team members thought it was the most boring thing in the world; this will just undermine your good intentions,” David states. You want to make sure the cost to the business is worth it. “The lunch itself may not be expensive, but giving your team a half-day out of the office can be.”
Employment Hero is an official ANZ partner and Australia’s first all-in-one HR, payroll and benefits platform. If you have an ANZ business or business savings account you’re able to access a free Premium subscription to Employment Hero which includes extending a range of special discounts to your team¹. That’s all part of ANZ’s goal to help small businesses thrive. To find out more visit the ANZ Employment Hero website.
¹Employment Hero services are provided by Employment Hero Pty Ltd ABN 11 160 047 709 (trading as Employment Hero). Employment Hero and Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (ANZ) are separate legal entities. Neither ANZ, nor any of its related bodies corporate (each, an ANZ Entity), has any liability to you in respect of the Employment Hero service; any information, product or service offered by any third party on or through the Employment Hero service website or any other services provided by Employment Hero. Similarly, Employment Hero does not have any liability to you in respect of services provided by ANZ or any ANZ Entity. Employment Hero and ANZ reserve the right to cancel the discount on subscriptions and withdraw this offer at any time without notice