Non-Financial Rewards

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  • Topic: Small business, Business, Inflation
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Non Financial Awards

Non-financial rewards gain value in retaining employees

San Antonio Business Journal - by Morrison Woods

Date: Sunday, January 26, 1997, 11:00pm CST
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One of the most annoying events faced by business owners and managers is hiring a good employee only to have him or her poached by another firm shortly thereafter. This is frustrating under the most favorable of circumstances where large numbers of candidates are available to replace the employee on relatively short notice. However, it is irritating when it occurs during periods of relatively low unemployment like we are currently experiencing in San Antonio. The period of qualified labor scarcity is not going to disappear any time soon. The Texas unemployment rate dropped to 4.9 percent in October, which is its lowest level in almost 15 years. Similarly, San Antonio's unemployment rate hit a low of 3.7 percent. Both these figures went up slightly in November to 5.3 percent and 4.0 percent respectively, but demographics indicate a continuing scarcity of qualified workers, especially for entry level positions. Recruitment of new employees by competitors will involve more poaching from current employee pools. This competition for productive employees will continue well into the future. It is inevitable that your firm will experience staff turnover, and your goal as an owner or manager is to slow the process. So, what can you do as a small business owner to keep your exemplary employees? There are basically two methods for retaining employees: monetary and non-monetary. Skilled employees have come to expect a certain level of monetary rewards such as a good salary, benefits package, and some sort of retirement plan. In order to compete for the most talented workers, both large and small firms need to provide an adequate basic package of financial rewards. The operative word for small businesses is adequate. Most small businesses cannot compete with large corporations on a...
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