Incentives motivate employees but do not have to break the bank.
Incentives are a great way to keep employees motivated and engaged in their work. "Incentives can help employee morale and retention," writes Washington Post small-business blogger Sharon McLoone, "but small businesses on tight budgets must find the most effective and appropriate ways to reward employees." Employee incentives do not have to be expensive to be effective. Cheap incentives can motivate employees to do their best just as well as more costly measures.
Food
Food is one employee incentive that is sure to please both employees and managers on a shoestring budget.
Gift cards in small denominations are a great way to treat employees to lunch, dinner or even just a dessert without breaking the bank.
The University of Washington's Human Resources Department also encourages handmade food items, such as cookies or bread, or handmade or inexpensive gift baskets that include fruits or just an array of sweet treats, such as an assortment of candy bars or other sweets.
Never underestimate the power of that all-American favorite--ice cream. Gift cards or certificates to local ice cream parlors are a thoughtful incentive, but you can also treat an entire department or a team to an ice cream social at work by bringing in ice cream and toppings yourself.
Personal Gifts
Recognize individual employees' achievements with small gifts that show you know and value your staff.
The University of Washington recommends subscriptions to magazines in topics of interest, or craft or hobby items pertinent to employees' personal interests.
The staff member who loves to show off photos of his or her children would appreciate a photo frame, while the employee who raves about his or her pet would love a small pet-themed gift.
An iTunes gift card for the music lover, a ticket to a movie for the film fan, or a poster or other low-cost souvenir for the sports enthusiast are other low-cost ways to let your employees know you appreciate their hard work and know them well enough to know their interests.
Time
One way to motivate employees to keep up the hard work is to reward them with the gift of time--their time, and yours. It's a gift everyone appreciates that costs you little or no money.
An afternoon off or an extra personal day is an excellent way to show an employee you recognize how much time he or she has put into a project.
Taking an employee who has gone the extra mile out to lunch lets your employee know that you recognize the value he or she has to the company.
Considerations
McLoone advises managers to preface any incentive by telling employees why they're being rewarded, and thank them for accomplishing a goal.
Bob Nelson, president of Nelson Motivation Inc., urges managers to "take time to find out what specifically motivates and excites each employee, and then do your best to make those things happen."
