Human Resources: How to Reward Employees – Without Raises or Promotions

Today, many employees, particularly those in commission-based or sales-related positions, may feel stuck in their jobs, especially when the opportunity for promotion is limited or not available.

And, chances are, you may be feeling just as stuck trying to help them.

Fear not. Boosting job satisfaction can be easier than you think – even during times of financial cutbacks, smaller pay increases and fewer opportunities for corporate advancement.

Consider these five morale-building tips that can help you retain employees – in many cases without spending much or offering promotions.

Tip No. 1: Remember to Recognize a Job Well Done.
The January 2006 Harvard Management Update reports that in about 85 percent of companies, new hires' morale declines sharply after just six months and continues to deteriorate for years after that.

Reversing this trend isn’t really as hard as it seems – especially if you just do one simple thing: Recognize good work. Sound incredibly basic? In my 25 years of working in corporate America, I’m still amazed at how often this simple, no-cost gesture is ignored.

When employees accomplish a key goal or reach a critical milestone, communicate the good news – both to them and to the company. Take the time to acknowledge them personally. Use the company intranet and e-mail to post congratulatory messages so the entire company knows. Or run an announcement in your organization’s newsletter. Not only will you recognize the effort, but you will also motivate others to do the same. All at a nominal cost and little effort.

Employee recognition programs are also prime vehicles for giving someone a well-deserved pat on the back. At MLN, our program is called FUNd. It bestows a variety of fun rewards – from gift certificates to show tickets to movie passes – for worthy on-the-job performances.

Tip No 2: Keep Communication Open and Honest.
Foster a culture of open communication. If it’s impossible to do this companywide, simply try it in your own department. Be accessible. Give staffers the information they need to do their job. Address issues as soon as they arise. And communicate news – both good and bad – so that employees always know where they stand.

Taking these simple steps gives employees a clearer understanding of your business and makes them feel like they are an integral part of the operation.

Tip No. 3: Create an Atmosphere of Meaningful Work.
Work can fulfill employees’ need to find meaning in their work. Find out how to satisfy that need for your employees.

Employees value the opportunity to be involved in meaningful work. If your employees know that the work they do every day matters – whether they stuff envelopes or program software – they’re likely to be more satisfied.

Help your employees see the big picture regarding what they do. By giving them a better understanding of the good they perform, you will instill a sense of pride in their work. As a mortgage lender, our mission is to make homeownership a dream come true for many families. Helping others fulfill this lifelong dream becomes a meaningful purpose for our employees.

Another way to create a meaningful environment is to encourage employees to share their innovative ideas on how to run a more efficient business. Perhaps start a committee that reviews the ideas, gives credit for them, and implements the best ones. At MLN, we’ve started a business improvement committee that not only solicits ideas about how we can improve our quality and service but also gives rewards for any we put into practice.

Tip No. 4: Offer Opportunities to Enhance Learning and Leadership Skills. Although there may be fewer opportunities today to promote people, you can still offer ways to advance them in their careers. Lateral transfers to different job assignments, for example, can help expose employees to new growth opportunities and enhance their skill sets. They’ll learn new aspects of your business and become more valuable to your organization.

At MLN, we’ve created a training program called MLN University. As a career development program for both new hires and existing employees, it offers three tracks to accommodate different workers – mortgage loan professionals, experienced mortgage sales reps, and professional sales reps. So, if an employee has sales experience, but not in the mortgage business, he could follow the professional sales program to gain specific training in mortgage sales to broaden his horizons.

We also offer a leadership development program that helps us grow our talent. In this six-month program, employees spend the first half learning how to process loans and the second half learning how to sell them. This training program gives employees a choice of specialties – and more control over their professional destiny.

Tip No. 5: Offer Perks in Lieu of Pay Raises and Promotions.
Today, many people struggle to balance their personal lives with their working lives. So offering perks that don’t cost much, yet carry substantial value, can be hugely motivating – like giving paid time off, flex-time or special travel opportunities. Employees can also be motivated by the opportunity to take advantage of some unique benefits like a health club membership or parking privileges.

For outstanding employee successes such as exceeding production goals, MLN offers an elite retreat, which rewards top-performing sales reps with an all-expense-paid trip to a fabulous locale every year. We even awarded our top service rep with a brand new SUV.

In 1997, MLN was founded with just seven employees. Today, we count 1,100 among our ranks. Even with the financial imperative to run a lead organization, at MLN we continue to motivate and advance our employees through a variety of valuable incentives beyond pay increases and promotions. Hopefully you can, too.