As a small business owner, you know it is crucial to have a pleasant and productive workforce who can help you to maximise revenue. You also want to keep your good employees for the long term; you certainly don’t want to lose them to any bigger competitors. Yet, motivating employees is challenging, as each individual is unique and so are the ‘factors’ that drive them. While we believe it is important for you to find out what motivates each person, here a few proven incentives offered as food for thought:
1. Reward Great Work with Bonuses
Cash, or non-cash bonuses, are still a highly effective way to reward employees who have performed well throughout the year. Bonuses are particularly meaningful during this festive period. A cash bonus is self-explanatory. Non-cash bonus can range from a new mobile phone to a Christmas party.
It is important to note that you have PAYE tax and National Insurance obligations when you pay cash and/or non-cash bonuses, though a few non-cash vouchers are exempt. One such exemption is social functions, such as a Christmas party (for up to £150 per head). If you have any questions about cash and non-cash bonuses, particularly on payroll and tax calculation, you can contact our Payroll team to find out more.
2. Opportunity to Make a Difference
Give your employees an opportunity to make a difference in the workplace, in the office building, even in a local or far-away community. In an office setting, you can empower them to make changes to a particular business process or how they want to decorate the office to make it more comfortable. Outside, they could start a new initiative to help others; an example might be to collect used tools and send them off to communities that need them the most.
3. Say ‘Thank You’ Often
You’d think this is simple, but it doesn’t always happen. So make it a point to say ‘Thank You’ to your employees right after each task or each project. During this festive time, consider writing a handwritten thank-you note and put it inside the Christmas card. Once they know that you notice their work and appreciate it, they may go the extra mile for you.
As we mentioned earlier, you are likely to find that different methods work for different people and make changes accordingly. If you invest time to understand what motives them, you will be rewarded with happy employees with greater dedication and higher productivity.