Motivating employees without giving pay raises

5/10/2011

Many small businesses are looking to bring on more employees now that their workloads are increasing, but money is still an issue for many. As the American Express OPEN Forum suggests, there are ways that employers can motivate their employees without giving them big raises and bonuses.

The best way to do this, says the source, is to be flexible when it comes to scheduling. For example, they could allow productive employees to start their workdays earlier or later depending on their needs, or let them work from home every once in a while. Entrepreneurs could also throw parties or treat employees with dinner after achieving certain milestones.

"Sure, money can be involved if you want - raises and bonuses are classic incentives. But there are still plenty of ways to incentivize your workers with no or little money involved," suggests American Express OPEN Forum.

Small businesses account for two out of every three new jobs that are made, so it's crucial that entrepreneurs remember to treat their employees right and keep them motivated even when commercial loans are hard to come by.