When cash flow is tight, snow contractors often find it difficult to provide workers with annual raises or periodic bonuses.
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Rather than completely foregoing pay raises, the National Federation of Independent Business offers some alternatives that reward employees for their hard work and may soften the financial bad news and keep them from walking out your door.
Be honest. It’s important to be upfront with your employees. Tell them the truth about the company’s financial situation and that the reason for no pay increases is not reflective of their performance or loyalty to the company.
Be the example. If your workers aren’t getting a pay increase, you shouldn’t receive a raise, either. Let them know sacrifices are being made from the top down, which may curb any feelings of resentment.
Delay, don’t delete. If you can predict when the financial crunch will pass, then delay pay raises for a certain amount of time. Let workers know they’ll receive their pay increases eventually.
Offer time off. If more money is out of the question, then provide them more paid time off. If you’re taking something away, prepare to provide something in its place.
Work/Life balance Some employees may value the ability to spend more time with their family as more valuable than money. Perks, such as the ability to work from home, flexible scheduling and occasional reduced work days, can curb the blow of no pay increase.
Increase benefits. Offering additions to the employee benefits package may actually cost less than increasing salaries. Offer to match retirement savings or provide health club memberships as added or new benefits.