Wednesday: Not all incentives are $$$

OK, so maybe this is less applicable when there's a good economy, but I do not think so.

Little kids love candy and toys. Thats a no brainer. If you start using these as incentives for good behavior at a public outing, they will expect them every time. Just ask my 3 year old who didn't get jack until this past Christmas when I needed to go on 3 hour errand expeditions for holiday prep. Granted, they work temporarily, but they also create expectations and eventual disappointment (and tantrums) the times when a prize is not readily available. Now that its January and the prizes don't flow, the tantrums do.

Little kids LOVE praise, and knowing that they have pleased their parent. My 3 year old did know this at one time. But they only love it if they are given this when earned. Not for every little thing, mind you. Then they expect their ego stroked non-stop, but when they've put in the effort to genuinely please you and get noticed, they love that reward. Now this reward sucks if they are given candy most of the time and then get a mere, "I'm so proud of you." Not starting this way creates bad habits that can be broken but are difficult to fix in that process. Other cheap rewards are playing their favorite song in the car when you would have had your music time, or one on one time with a parent. For my 3 year old, a fishing trip to the local river means he's been extra good.

So your business has fallen on hard times and you cannot give a raise. What else can you give a loyal employee? My last job had this situation happen and only the top 10% of performers got a 1% raise (yes, 1%) because they wanted to recognize them, but could not afford more. When I was notified of the raise, I politely thanked them and asked if I could get it in vacation time instead. They gave me a blank stare and then I think the reviewers would have kissed me if they could. This would save them money. Instead of a very small amount of extra income which would add up to not much extra after taxes, I got 4 extra days off that year. I would rather have that extra time with my family than the extra income. And technically since it was paid vacation, it was not decreasing my income. From their standpoint, they did not have to pay me extra and I was one of their best workers so they knew they would still get the same or more out of me. Win-win.

Some employees want more responsibility to add to their resume (though don't assume this if you cannot provide a pay increase with it.) Some would be flattered to be invited to that networking group you belong to. Or some have other ideas - ask. A good employee is worth their weight in gold and if you can't fork over the gold, find something they value as much.