Enhancing employee benefits

It doesn't take much effort to reward an employee for a job well done. In fact, employers don't even have to reach into their pockets to give "the one employee incentive that will never break the company budget: timely, honest praise of workers who do well," said California-based author Bob Nelson.

In his book, 1001 Ways To Reward Employees, Nelson offers low-cost ideas that boost employee morale while heightening productivity.

"Wherever I go, there's a whole list of reasons why people can't or won't do this," Nelson said. "Instead of complaining about what you can't do, focus on what you can do."

Nelson said one of the easiest and most powerful places to start is with a verbal "thank you."

"Most people complain the only time they get feedback is when a mistake is made," Nelson said.

Some of his low-cost ideas include suggestion boxes in cafeterias, flexibility with dress codes whenever possible, time off, longer lunch breaks, post-it thank you notes, e-mail acknowledgments, birthday luncheons, event tickets, and gift certificates. Nelson even suggests washing an employee's car in the parking lot during lunch or baking him a batch of homemade chocolate-chip cookies.

"Some businesses use the employee-of-the-month program, but we need employees of the moment, and we need them every day," Nelson said.

Nelson goes on to say that some places use stale, informal programs that hurt more than they help.

"There are suggestion boxes in cafeterias that are never even opened," he commented.

David Zuckerman, owner of Easy Edit Video in Bay meadows, said there are things

the small business owner can do that go above and beyond the bottom line.

"You can't always reward people with money, so pass around the freebies," Zuckerman said.

Zuckerman rewards his employees with coupons, movie tickets, T-shirts and other items he receives from vendors. He also celebrates employee birthdays and gives occasional half days off.

"The benefit to employees is they get to have or do something special. It builds morale and lets them know you're more of a family," Zuckerman said.

And in the long run, Zuckerman said the employer benefits as well.

"In a small business setting you're closer to your employees on a one-to-one basis, and likewise, they're the ones dealing with your clients on a one-to-one basis," he said.

"One informal measurement of the reward system we use found that employees who participated in our `national fun day' gave better marks on our annual employee satisfaction survey," said Donna Berry, manager of Sprint Business' marketing program.

"One mistake businesses make is to focus on building capital. We have to make a conscious effort to boost employee morale," Berry said. "Today's employees want more than just the traditional salary, health plan, and two weeks vacation most businesses offer."

Berry said today's employees want personalized, intangible rewards that improve the quality of their lives.

"Try being a little more sensitive to an employee's needs," Zuckerman said.

In a series of studies conducted by Lawrence Lindahl in the late 1940s and repeated by Nelson in 1991, managers and employees were asked to rank 10 factors relating to job satisfaction.

Managers believed good wages and job security would be at the top of employees' lists. But instead, employees ranked job appreciation as the No. 1 factor in determining job satisfaction

Managers believed good wages and job security would be at the top of employees' lists. But instead, employees ranked job appreciation as the No. 1 factor in determining job satisfaction. Job security and good wages came in at No. 4 and No. 5 on employees' lists.

"Managers need to increase their awareness of what motivates employees and use that information to help them realize their potential," Nelson said.

Here is an example: Restaurant owner Al Mansur of Al's Pizza has discovered a creative way to enhance employee morale while boosting sales.

"We have monthly competitions to see who can sell the most appetizers and drinks," Mansur said.

By teaming with restaurant vendors and suppliers, Mansur awards prizes to the winners, such as gift certificates and cash bonuses provided in conjunction with the suppliers.

Nelson suggests other ideas such as creating a hall of fame wall to recognize outstanding employees and including write-ups in company newsletters. Nelson said the possibilities are endless and suggests finding a program that caters to each company's needs.

"There's one reason to do this -- it really, truly works," Nelson said. "If it doesn't, you can always go back to what you were doing before."