A company's employees are one of its most valuable assets, and managing them can be one of the most important—yet challenging—tasks required of a small business owner.
Even businesses that have very few people listed in their employee payroll software still need to be attentive to how motivated, productive, and satisfied their employees are, because all of these things can impact the company's bottom line.
However, theories abound for how to increase staff productivity and job satisfaction, and some small business owners may be discouraged by thinking that they do not have enough money or resources to adequately meet the needs of their employees.
On the contrary, many employee motivation and recognition strategies require little to no financial investment, and may be simply a matter of adjusting management practices. Others require some investment, but that is often returned by boosting the company's productivity and, consequently, bottom line.
Invest in compensation packages
One of the most traditional and commonly used tactics for increasing employee satisfaction and retention is ramping up compensation packages.
This can involve raises, bonuses, or enhanced benefits such as matching 401(k) contributions, transportation reimbursement, health insurance, and vacation days.
However, not every business can afford to take measures like these, especially in the wake of the economic downturn. Businesses are encouraged to use their employee payroll software to see if the company can afford enhancing compensation packages.
The win-win incentive strategy
Benefits do not always have to be expensive—in fact, some may actually help a business increase its profit margins.
For example, incentives such as flexible work schedules and telecommuting can improve worker satisfaction by improving an employee's work-life balance, making employees feel happier and more productive. This is an especially attractive setup for workers that have small children at home.
At the same time as making employees happier, telecommuting and flexible work schedules can reduce overhead costs by limiting the amount of energy, supplies and office space needed. If a company offers transportation reimbursements, this can also eliminate some costs.
All work and no play…
Another way to increase employee motivation and job satisfaction is to make investments in corporate culture.
This can be as simple as recognizing employees on their birthday or instituting monthly cocktail hours, or can be as involved as creating a company softball team or putting an entertainment-filled break room in the office.
Whichever level of involvement is chosen, employees will likely appreciate the attention being paid to their job satisfaction, a factor which will often be seen in their productivity and performance.