In case there was any doubt about the anecdotal evidence suggesting that wages are rising, the Labor Department’s Employment Cost Index quantifies the trend as well. On July 31, it reported that not only did U.S. labor costs rise in the second quarter, but they also were higher in the prior period than previously estimated.
For workers this is good news, of course. It is also good news for employers, at least in the aggregate. Rising wages means rising income (and unfortunately, rising inflation sometimes, but that’s another story), which in turn means more discretionary spending on (we hope) your goods and services.
However, for the individual employer, accommodating rising wages might not be part of the near-term financial plan. Never fear, though, there are ways to keep employees happy without increasing their pay. Some of these suggestions will cost money, but not as much as an increased salary will. Others cost nothing except for the time and effort management you expend putting them into place.
Following are some ideas for non-compensation perks. Not all may be a good fit at your business, but they might trigger some ideas. If you have other ideas, I’d love to hear from you in the comments section.
Unlimited Vacation Time
A small but growing number of companies — small businesses in particular — are adopting this policy, allowing employees to take extended (and usually unpaid) vacations. Feedback has been largely positive, and employees are said to respond to employers’ flexibility and trust with loyalty and increased productivity.
Allow Telecommuting
Yahoo CEO Marissa Mayer’s thoughts on the subject notwithstanding (She famously ended telecommuting at the digital company), studies have found that telecommuting does increase productivity and, again, increases loyalty to an employer, especially if flexible hours are part of the mix. An important caveat, though, must be highlighted for employers: Telecommuting can be a double-edged sword in the eyes of some workers if it leads to increased hours worked overall.
A Pew Networked Workers survey found that a majority of telecommuting workers felt obliged to stay in touch with the office beyond regular work hours, and perform tasks even when sick or on vacation. For telecommuting to truly be perceived as a benefit, make a point of keep working hours the same. Also, give all employees the same opportunity to telework – not just management. Other studies have shown the privilege is often granted to “status” employees, which can cause resentments.
Time Off for Volunteer Work
Salesforce.com adopted this policy when it launched several years ago, before it grew to become one of the top tech companies. That is not to say the donated volunteer time was the reason for its success, but it made employees happy and proud, which no doubt indirectly contributed to the company’s ultimate achievements. The time off can vary from one day a month to an hour or two a week, depending on the company and employee schedules. As an added bonus, it fosters good will in the community.
Harmonious Workforce Environment
This may not be a perk typically cited by human resources, but it is essential to a happy workforce. Managers should do everything they can to cultivate a harmonious, open workplace environment. This includes not tolerating disrespect among co-workers and developing trust between the employees and management. How do you do that? To borrow from the title of a well-known book, just follow the rules you learned in Kindergarten. Be nice. Be ethical. Don’t spring bad financial news on employees. Don’t tell them the company is doing well when it isn’t. Always keep your promises. Be fair. Don’t be defensive when an employee offers ideas or suggestions on how to improve something.
