Rewarding Key Employees When Cash is Tight

Finding ways to keep high-potential employees feeling good about your organization with a limited or non-existent budget for cash bonuses and incentives is a challenge many leaders are grappling with. In a recent study released by McKinsey, three ideas emerged as non-financial ways to help talented employees maintain enthusiasm for their position and feel valued and appreciated. They were:

1. Praise from their supervisor. Genuine acknowledgment of a job well done is always a boost to those who are striving to do their best. This costs nothing and only requires a few minutes to deliver. The payoff in terms of employee satisfaction and retention is huge.
2. Assignment to a task force or special project lead. This sends the message that your employee is valued for his or her abilities and creative problem solving. It gives them the opportunity to gain valuable experience and visibility, which can pay dividends in the longer term when money is not so tight.
3. Time spent with senior leadership. When valued employees are sought out for their ideas and opinions by the senior leaders in a organization, they feel seen, heard, appreciated. This can be as simple as saying, "Leslie, I'd like to hear your ideas on how we might approach a new project in the works."

People do their best work when they are inspired. Part of what inspires us is feeling seen and heard, along with the invitation to use our creative problem-solving skills and feel like our ideas land in fertile soil and a welcoming environment. In any economy, people are our most valuable asset, and deserve to be treated that way. The potential return on investment makes the effort a no brainer.