Business Compensation

Creative compensation options

Developing compensation strategy is straightforward but it is sometimes important to be creative when rewarding long-term effective employees. At times established ceilings may prevent providing salary increases to reward high level achievement.

Here are a few options that might be used to continue to motivate these high achievers:

1.    1. Paid time off: extra days off for personal projects, add time to years of service, or just hours away from work to help children in school or to volunteer in community service.

2.     2.Professional development: this is an individual reward that reinforces the company’s interest in the personal growth of an employee.

3.    3. Recognition: Try to publically recognize achievement; treat the employee to lunch or have a department party to recognize the employee.

4.    4.  Provide technology: buy the employee a new laptop computer or cell phone. Perhaps add a second phone for a spouse since they often play a significant role in the success of an employee.

5.     5. Bonus: pay a specific bonus or incentive that relates to achievement for a specific project or completion of a set of objectives.

6.    6.  Stock: An important method for rewarding high achieving long term employees is to offer stock options that allow for participation in the overall success and profitability of the company.

In addition, the company can provide enhanced benefit programs, increased retirement benefits, extra perks such as use of company vehicles, club memberships, flex hours or the ability at times to work from a home office.

The organization is going to reap the benefits of rewarding highly effective employees and in addition there is a likelihood of the business retaining key employees or attracting key new employees if it has a reputation of strong, competitive and creative compensation planning.