60-SECOND MANAGER

Cash is king, but there are other ways to reward staff.

A cash bonus can only go so far in motivating and engaging employees. It’s a fleeting, inthe-moment reward with little meaning attached to it. That’s why Soula Courlas, head of KPMG’s People & Change advisory practice, says non-cash incentives can go a long way towards showing employees you care about them. “Employees want to feel valued, and putting a price tag on that doesn’t always get the result you want,” she says. But what kind of non-cash rewards work, and how do you deliver them in such a way that will inspire hard work and loyalty? Here, Courlas offers these tips.

PERSONALIZE IT

The beauty of non-cash rewards is that you can choose them carefully to have some meaning for your employees. “Employees want to know that you know who they are,” Courlas says. For example, if an employee has been talking about trying out yoga, a one-month pass and a yoga mat might hit the spot. Someone who’s been working a lot of overtime might appreciate a maid service, or an extra day off work before a long weekend. For some employees, career development opportunities, such as paying for training or giving them the opportunity to speak at a conference representing the company, might be all the reward they’re looking for.

But don’t blow it by offering something that is against their values — for example, a gift certificate for a steakhouse to a vegetarian — or something that will cost them more money or trouble in the long run, such as a pair of tickets to a hockey game if you know they don’t have a babysitter. “Knowing your employees and what makes them tick is important for these non-cash rewards, because it demonstrates that you care,” Courlas says.

TIME IT

You don’t want to spring gifts on employees for no reason, but you also don’t want them to come at such regular intervals that they are expected and no longer considered a bonus. That’s why, Courlas says, incentives should be linked to some sort of work the employee has accomplished, or behaviour they have demonstrated. If an employee has gone above-and-beyond on a big project, that’s the time to give them a reward. But make sure you explain why they are getting it, so they can see their hard work is paying off. Some companies even have formalized non-cash incentive programs: at KPMG, for example, managers and peers can give colleagues points for good work that they can use to “buy” things within the program.

LINK IT

The whole point behind incentive programs is to encourage employees to work in the best interests of the organization and to stick around. “A company spends a lot of time and effort thinking about strategy, and you want your organization to move in that direction,” Courlas says. That means rewarding work and behaviour that’s in line with your company’s goals. For example, if you want a more team-based culture and an employee has started a project with another group — reward that. Or if you’re going for creativity, and an employee has an idea for a new product or process, single them out, give them a bonus, and tell them exactly why. “It connects the recognition you’re giving them back to the organization,” she says. Remember, incentive programs shouldn’t be ad hoc. “Acknowledgment for effort should be institutionalized in the culture,” Courlas says, “because that’s what breeds engagement, higher performance and loyalty.” Employees want to be loyal. “They’re looking for reasons to stay, not reasons to go,” she adds.