By all economic indicators, the labor market is tighter than ever. And the marketplace suggests that employers are adapting.
Many are leveraging bonuses and other creative ways to boost employee retention. Some are providing birthdays off WITH pay.
It goes without saying that attracting and retaining top talent should be a priority for every business owner. That said, even if you operate in a highly volatile economic environment, there's still much you can do tamp down those turnover rates.
Here's why: According to the Work Institute's 2019 Retention Report, a staggering 41.4 million American workers left their jobs in 2018. In that year alone, employee turnover was close to 30% nationally. The Work Institute posits that, if the trend continues, the national employee turnover rate may hit 35% by 2023.
Those are frightening numbers.
Since productivity is key to operational efficiency, entrepreneurs should establish both monetary and non-monetary compensation plans for rewarding high-performing employees. Below, we share some of our most creative employee compensation ideas for employers in the consumer health product, nutritional ingredients, and dietary supplement industries.
1. Profit-Sharing and ESOPs
Since employees play a significant role in a company's financial success, consider implementing a profit-sharing plan to retain your best workers. In a profit-sharing scenario, your employees will receive a share of your company's profits on a quarterly or annual basis.
Today, many organizations also offer an Employee Stock Ownership Plan (ESOP). Such a plan gives employees ownership interest in your company. By owning stock, employees become shareholders and are then motivated to act only in the interest of shareholders. When the employees retire or leave your company, you'll "buy" their stock back. These employees can then take their payment in a lump sum or in periodic monthly payments.
2. Sincere Thank Yous
Simple words of appreciation may not seem like much. However, they often carry great weight and can impact your employees positively. "Thank You" is a simple, short, and powerful phrase that can raise employee morale.
Whether you hand out Hallmark cards (bonus points for adding a gift card), put up a poster on an internal notice board, or send out a company-wide email, your words of gratitude can make a huge difference in how your employees view your company.
3. Performance-Based Raises and Bonuses
Employees who add to their skills, take on new responsibilities, and achieve specific goals deserve a pat on the back. What better way of rewarding them than through raises and bonuses? It takes tremendous dedication for an employee to devote time and effort to acquire new skills on the job. Thus, performance-based raises, as well as bonuses, are creative ways to reward them for their efforts.
4. Flexi-Time and Remote Working Privileges
Today, the prospect of achieving work-life balance often eludes the typical employee. Thus, offering flexi-time and/or remote working opportunities can help you retain your best talent.
That said, employees with young families are most appreciative of the flexibility remote work allows. According to Harvard Business Review, flexible or remote working options are second only in popularity to health insurance in terms of workplace perks.
5. Corporate Days Out
Let's face it: your employees see the same office walls and corridors daily. Have you ever considered taking them out of their element? Beyond the mundane, corporate days out can help you achieve a more cohesive, bonded workforce.
Inducting recruits will not be a challenge when they're allowed to participate in team building activities with other employees. In fact, this staff compensation option may help you achieve more than you expected.
6. Free Snacks or Meals
There are many ways to increase employee productivity levels. One of them involves offering refreshments and meals in-house. This cuts down on employees rushing out for coffee or lunch breaks.
Serving your staff healthy snacks and lunches will also add to their sense of well-being and is one of corporate America's favorite compensation strategies. Both Google and Facebook spend millions of dollars a year providing free meals to their employees.
That said, you don't have to spend millions to retain your best talent. Consider stocking your employee break room with inexpensive snacks and beverages. Also, consider asking your employees what provisions they'd like to see in the break room. Most importantly, honor all reasonable requests.
To learn more about how you can hire and retain exceptional employees, contact The Garner Group today.