It’s (not) all about the money

It’s (Not) All About the Money Rethinking Employee Rewards & Benefits

It’s (Not) All About the Money

Still in the midst of a corporate cash crunch, a lot of companies are looking to do more with less when it comes to salaries.



Post-recession boosts are improving, though at an incremental pace:

According to Hay Group, salaries will increase by 3 percent this year, “The 3 percent increase holds fairly steady across most industries, except the oil and gas and luxury retail sectors, which report 3.3 percent and 3.5 percent median increases, respectively.”

When you factor in inflation, that bump in pay doesn’t amount to much …



So if you can’t reward your employees with higher salaries, how can you reward them?


•Non-Cash Benefits •Variable Pay

Non-Cash Benefits

What are they?

Non-cash benefits are things like merchandise, travel, gift certificates, gift cards, or even a simple “thank you” – and are a great way for companies to “do more with less.”

(Source: Madison Performance Group)


Non-Cash Benefits

One of Minnesota’s largest employers has been known to give a turkey to each of its 6,000+ employees for Thanksgiving …


Non-Cash Benefits

And even extra PTO can be used as a non-cash benefit.

After all, an extra week of vacation equates to about a 2% raise. (Source: Businesspundit.com)


Variable Pay Plans

What are they?

Variable pay plans, or performance-based award programs, require employees to earn the reward.

They may or may not include giving monetary rewards; the key difference is that variable pay fluctuates over time and isn’t fixed or guaranteed.


Variable Pay Plans

Some of the most common performance-based programs are:

• Pay linked to output – for example, pieces produced or items shipped • Individual or team awards – given upon achievement of pre-set goals • Share in company’s profits – employees are given share in company profits • Sales commission – salespeople are paid commission based on quota achievement


(Source: Compensationcafe.com)

Rethinking Rewards

Afraid of these alternatives?

While cutting cash out of the equation might seem like a risky move, many sources say that an employee’s happiness with his job doesn’t rely solely on the numbers on his paycheck. Don’t assume money is the only motivator.


Rethinking Rewards

People want more out of their job:

• Rewarding work

• Meaningful relationships

• Autonomy

• Acknowledgement (Deloitte – Cash or People? Are People Really Your Most Important Asset)


Rethinking Rewards

And when you think about it, giving an employee the recognition and resources needed to enjoy and succeed at his job is one of the best rewards you can give him.


More information: www.dohertystaffing.com