How to reward top performers in tight times

How can business owners motivate and reward valued employees when finances are tight? Here are 10 easy steps to keep key employees motivated:

1. Money isn't everything; praise counts too. Cash compensation rocks — but not as much as you may think. For instance, a recent survey of office workers nationwide, found that employees rated more money and more recognition as almost equal motivators.
   
   Typically, talented employees who run extra miles are not thinking about paychecks. Yet over and over you hear stories of the chief exec brushing right by the managers and employees who make him or her look good — without saying a word.
   
   Never underestimate the power of individual recognition and direct praise.
   
   
2. Up the ante in terms of challenging work. Counter-intuitive as it may seem, assigning more high-quality and demanding work galvanizes peak producers. By offering them more challenging assignments, you are letting employees know that you appreciate what they are doing and that you trust them to handle more responsibility. It can also provide training and experience that positions the employee for a promotion when everything shifts back to high gear.
   
   
3. Little treats go over big. When times are flush, it’s great to award the staff with morale building events such as boat rides, picnic lunches or a weekend getaway to hotels in town. But when times are tough, you can still give things that don't cost very much, like lottery tickets, movie tickets, or a restaurant gift certificate that will still bolster the employee.
   
   
4. Help them grow. Investing in an employee's career development produces a return of hard work and appreciation. If you care about the staffer's satisfaction and growth, he or she will likewise care about yours. "Even people operating at the top of their game can benefit from increased developmental opportunities through training and personal mentoring," says sales trainer Dave Anderson, author of "Selling Above the Crowd."
   
   
5. Instill faith. Motivation depends on providing straight answers to three questions about a difficult job, new assignment or staff project. What’s the plan? Without a plan there's no way to believe things will work out. Where are the tools? If we have a plan, we need to believe it will actually happen, and How do we use the tools? If you need to provide training to use the tools within the context of the plan, then make that happen, and share when the training will be available, and to whom.
   
   
6. Give a gift of time. A half-day or a long weekend off means a lot to today's time-pressed families. On the eve of holidays, early getaways are especially welcome. If, on the other hand, your staff has been trimmed along with your business, you can at least offer the option of telecommuting or flexible hours. Let staffers choose to come in early or leave later.
   
   
7. Be more responsive. If you solicit ideas from employees on teamwork or, say, how to develop new business, follow through. Use the ideas — at the very least, acknowledge them and discuss them. Don't make the mistake of asking for feedback and then shelving it. Show your team that their ideas make a difference.
   
   
8. Target incentives. Customize bonuses or commissions to exactly the kind of sales you need now, and the money might be well worth it. For example, offer a commission only for new business or only when a salesperson achieves new sources of revenue from old customers. Tie salary commissions to new product lines that are important to sell. Give a corresponding bonus for the development of these product lines, especially if they must develop a new customer base in order to make the process profitable to the company.
   
   
9. Leverage expertise. Tap your top performers as teachers. Have employees share their expertise by training or mentoring other staffers. You'll not only save your training budget, but you'll also make skilled employees feel valued.
   
   
10. Horse trade. Find a company with excess inventory or slowed services that your employees would enjoy, and set a swap. Trade your product for theirs. For instance, your managers get a swell dinner at the local five-star restaurant and its senior staffers receive free products or services from your company — or some similar exchange.

Now more than ever, intangible rewards are an organization's ally in the competition to motivate and retain top talent. In other words, when times are tough, it truly is the thought that counts.