12 Secrets to Keeping Employees Happy

Without a Raise

Credit: Syda Productions/Shutterstock

In this ultra-competitive recruitment and hiring environment, retaining current

employees is a critical component of firm success. Not only is a low turnover rate
good for the bottom line, but it also means you are creating and building upon a
firm foundation for the future.

Retaining employees does not always come down to paying them more than
anyone else. Studies have shown that employees with high job satisfaction are
generally more productive, engaged and loyal to their companies. Hiring
managers, HR experts and business leaders weighed in on the best ways to keep
employees satisfied when salary isn’t the driving factor.

1. Make work-life balance a priority.

“To engage the workforce and remain competitive, it’s no longer sufficient to
focus solely on benefits. Top employers create an environment where employees
feel connected to the organization and have a positive work experience that’s part
of a rich, fulfilling life.” – David Ballard, assistant executive director for
organizational excellence at the American Psychological Association

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2. Make employees part of the big picture.

“The best benefit you can provide to your employees is the opportunity to make a
difference through their work and help guide the course of the company. Benefits
such as clear and frequent communication on company happenings, individual
and department direction, and big-picture company direction make all the
difference in employee happiness.” – Anthony Smith, CEO and founder of
Insightly

3. Be transparent and honest.

“Feedback and the ability to understand employee concerns is important, but it’s
what you do after that’s critical to retention. You should always be transparent by
sharing what you’ve learned and a course of action for addressing the issue. For
example, after a recent companywide engagement survey, we chose to share our
results with all employees. We not only communicated our top areas of success
but also our areas for improvement and how we planned to address them moving
forward. Transparent communication and a simple acknowledgment that we
heard you can go a long way.” – Laura Grieco, HR and administration director at
ParkMobile

4. Offer more vacation time.

“Reward your highest performers with incremental vacation days. These

employees are your superstars, so you can be confident they will get their work
done as well as enjoy a few extra days of well-deserved time off with family and
friends.” – Stacia Pache, founder and CEO of ItBandz

5. Encourage communication in common areas.

“Businesses should take steps to create spaces where employees can easily
communicate and share ideas. Casual conversations in the break room can
become collaborative conversations. Make it inviting and effective, with nice
furniture, tables, and snacks and beverages, if possible.” – Tom Heisroth, senior
vice president at Staples Advantage

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6. Create a career pathway.

“[Our research] found that providing developmental support, such as training

opportunities and career mentoring, to employees who do not believe there are
attractive career opportunities for them within the company led to such
employees leaving the organization. It’s critical for businesses to have regular
career-planning discussions with their employees. As part of training and
development, make sure employees are aware of the different types of career
paths or job opportunities throughout the company.” – Maria Kraimer, business
professor at the University of Iowa

7. Promote a positive work environment.

“Happy employees make for a happy company. Within the office, we’ll publicly
acknowledge accomplishments, provide a group lunch, reserve a prime parking
space or change a title. We’ll also help employees to grow and develop, whether
by taking on new desired responsibilities or challenges, taking courses to learn
new skills, or furthering knowledge of the company by traveling on company
business trips.” – Jakki Liberman, president of Bumkins

8. Build employees up.

“If you’re looking to keep an employee by giving him/her a raise, it’s already too
late. Find people who share the operational values of your organization from the
outset, test for fit early, and allow growth opportunities to express that value.
We’re fanatics about initiative and constructive impact. Our team members are
consistently rewarded with higher-value projects following a constructive
initiative.” – Zachary Watson, CEO at HoneyCo

9. Set the example.

“One can’t underestimate the importance of walking into the office as the boss
with a smile on my face and making sure I give the same feeling of importance to
everyone.” – Jon Sumroy, CEO and inventor of Mifold

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10. Always say ‘thank you.’

“In my experience, employees rarely become unhappy or leave solely over money.
When they do become disenchanted, it is usually because they don’t like their
boss, aren’t engaged or feel like they have stopped learning. Having a positive
culture and workplace environment helps a lot, as it encourages teamwork and
communication, which increases engagement and opportunities for teammates to
learn from each other. We also do periodic shoutouts to people at all levels of the
organization for great work or superior effort. These kudos cost nothing but
provide important public recognition for a job well done, effectively compensating
people in the form of social currency, which is highly valued.” – Gary Beasley,
co-founder and CEO of Roofstock

11. Recognize and reward employees.

“Reward frequency is more important than size. Business feedback indicates that
smaller, frequent positive feedback and rewards will keep people happy longer
than a single large, infrequent happy event. Even the biggest awards or raises
‘wear out’ in less than a year, with most employees responding better to small
doses every few days.” – Ron Friedman, author of “The Best Place to Work”

12. Offer benefits beyond the basics.

“There are many ways to supplement salary by assisting employees in other areas
of their lives. You can offer an extra level of life insurance or disability insurance
for employees to protect their incomes. Other ancillary benefits, such as dental,
optical [and] wellness, are all well received by employees. And gym memberships
and transit benefits are great perks to keep employees happy and healthy. It is
important to [provide] higher benefits so your employees know that you truly care
about them and their families.” – Bobby Hotaling, president and CEO of The
Hotaling Group

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