Raises Expected in 2010; Are There Other Ways to Reward Employees?

Sarah Needleman wrote a great blog post for the Wall Street Journal recently called, “Better Paydays Ahead.”  It’s a frank, investigative look at how employee compensation has been changed – probably for a long time – by the economic crisis.

The majority of the experts and research she cites point to modest pay raises in 2010, with the old 4-5% increase (if memory serves) replaced by 2-3% raises by those companies that can afford it.  Hanging onto top talent is a concern and there is some question about how those employees will be rewarded compared to others.

But what if you’re one of the nearly 20% of companies that can’t afford to give out increases next year or you’re worried that 2-3% won’t hang onto your talent pool when the competitive market returns?

Work/life, wellness and employee assistance programs (EAP) have never really been promoted as “rewards” – they’re benefits that help employers maintain lower costs and maximize productivity as much as they help employees. 

But it’s time to change that.

These programs costs pennies-on-the-dollar compared to other benefits, they save organizations money in other costs (like healthcare), increase productivity (by reducing absenteeism, presenteeism, etc.) AND EMPLOYEES LIKE THEM.

It’s an affordable compliment to a traditional compensation and benefits package. 

For example, for as little as $0.20 – $7.50 per employee per month, you can provide some or all of these services to your staff:

• EAP services to help employees manage stress and challenging life issues
• Weekly yoga classes in your building or office
• A personal health coach for those struggling with health issues
• Convenience services which act like a “concierge” and direct employees to the best services for: home repair and remodeling, pets, cleaning, house sitters, health programs, continuing education, volunteer opportunities, leisure and family pursuits, and more
• Legal resources like referral to the right lawyer when needed and an initial consultation at no cost to the employee, or will preparation support
• Financial services like retirement planning, tax consultation, financial planning and debt counseling

Not every employer offers these types of services – it’s a competitive advantage for you.  Offer them.  And, promote them during employee performance reviews. Encourage people to use them.  It’s not money in their paycheck – but it does provide them with great services that save them time and don’t cost them a cent. 

Promoting what you do for employees – on every level – is really important.  Our biggest area for improvement in the EAP and workplace resources space is to better communicate directly to consumers – your employees – about how cool these programs are. 

Employees need to understand that these are programs that you’re offering at NO COST to them, because you value them as an employee.  Because when employees know that, they appreciate them more and they are more engaged and loyal.  But who wouldn’t be if they felt cared about and valued by their employer?

If keeping employees happy while still being fiscally responsible is important to your organization, demonstrate your appreciation for the work employees do beyond a few additional dollars in their paychecks.  Reward them with services that make life, especially in these challenging times, better.

Tags: benefits, compensation, EAP, Employee Assistance Program, financial services, health coach, legal resources, paydays, Perspectives, raises, Wall Street Journal, Wellness, work/life, yoga