What Is The Second Best Way to Reward Employees?

enveloped on 28/12/2023 - 22:38
Last edited 29/12/2023 - 10:25 by 1 other user

Hi, I'm a struggling small business, so the first option of just handling cash is out of the question.

What is the second best way to reward employees? One employee has a clearly expressed wish for the solar generator, so that is covered; another has a son in Spain, so I hope I can get a cheap ticket for the son to see his dad.

But generally, what options do I have to reward other employees who worked hard last year? Before you neg me, they are fairly compensated in the first place regardless New Year bonus or not.

Education & Work

Comments

  • Wiadro on 28/12/2023 - 22:41
    +46

    pay them

    • enveloped on 28/12/2023 - 22:42
      +6

      I was totally expecting this answer. in fact they are paid a bit above industry average; but I think they worked better than industry average.

      • AustriaBargain on 28/12/2023 - 22:53
        +28

        You bought one a solar generator? Give the other one cash equivalent and tell them they can go see their son in Spain, if they so choose. Though the one that got the generator may feel sore about not getting cash too, so you've got a bit or a problem…

        • spal on 29/12/2023 - 13:42

          I think, this could be difficult to compare. As for the air ticket, the final price is the final price. However, for the solar generator, although the value seems higher, after the government incentives and rebates the out of pocket could be similar to a economy return ticket to Spain.

    • us3rnam3tak3n on 29/12/2023 - 13:35
      +3

      If that's the second best reward, I'd like to know the first.

      • Jake D on 29/12/2023 - 14:32
        +3

        also cash

  • Switchblade88 on 28/12/2023 - 22:50
    +26

    You're willing to buy an international plane ticket, but not give them a cash bonus??

    • enveloped on 28/12/2023 - 22:56
      +32

      Ah, I see this is where it goes. I can give a 2k cash bonus, but he won't get an international ticket because he will walk to the nearest travel agent and realise it's not enough for a return ticket because this employee specifically can't use google flight, not to mention Ozbargain. In fact, he has no computer and only uses WhatsApp and Facebook - not uncommon for his age group. I now regret this post because everyone assumed bad intentions when I wanted to maximise my little budget. I have no problem sending 2k, but I wish I could have given him 4k. He is flexible on dates, but I dought travel agent shops will scout the date that is allowed by the bounce amount.

      • Switchblade88 on 28/12/2023 - 23:05
        +12

        $2000 each is not a 'struggling small business' amount, to be fair.

        To be clear, I'm glad you're rewarding your employees above what they were paid, but giving them money also gives them the choice of where to spend it as they decide. If they're happy with you organising and paying for flights then I'm not objecting.

        • enveloped on 28/12/2023 - 23:08

          Really? I think I'm struggling, to be honest, with a 50k loss per month, but Sparky still charges 300 for changing a light bulb, so 2000 is just like 6 visits from an electrician. Time is different, I think soon those who can fork 10k will call themselves poor.

          • serpserpserp on 31/12/2023 - 14:37
            +2

            @enveloped: You are losing 50k a month? How can you afford to give any bonuses then?

          • ddhar on 31/12/2023 - 23:20

            @enveloped: You're losing $50/month (irrespective of revenue) and yet considering to fork out thousands in gifts (plus some to the taxman). It's not financially responsibl. The suggestions on non-financial rewards (extra days off and flexible working arrangements in particular) would serve you well until you are in the green.

        • YBAF Pilot on 29/12/2023 - 16:07
          +37

          OP wants to do something nice and looking for some general advice. You want segway being negative and argue semantics about what monetary measures classifies as a struggling small business. Why do you want to argue this point. Jesus what is with the negativety on this site?

      • freefall101 on 28/12/2023 - 23:33
        +6

        I think this is awesome. With family overseas it's really hard to try book time off and also get a decent price on a flight. Usually I have to wing one of them, book the time off then hope to get a flight for that time, or try talk my boss into being very flexible on when I take my time off to save a bit of cash.

        If my boss bought me a ticket along with organising the time off, I'd stay in my job forever.

      • photonbuddy on 29/12/2023 - 12:59
        +4

        I can give a 2k cash bonus, but he won't get an international ticket because he will walk to the nearest travel agent and realise it's not enough for a return ticket because this employee specifically can't use google flight, not to mention Ozbargain.

        You know this up-front, but are unwilling to simply say "If you want, we can look for cheap air fairs together!"

      • PlasmaStorm on 29/12/2023 - 13:31

        I personally don't see any problem with a cash bonus. Sure, maybe it won't cover the full cost of your employee's son's flight ticket, but a contribution is a contribution, and I'm sure he'd greatly appreciate it.

      • drfuzzy on 30/12/2023 - 22:59
        +1

        What if you owe $2k Fringe Benefits Tax on the $2k ticket. How have you allowed for the FBT in your calculations?

      • airtime on 31/12/2023 - 20:36

        I just wanted to say that I think you are being an awesome employer and generous as well. Not many employers shows so much care for their employees.

  • Craze on 28/12/2023 - 22:51
    +12

    The rewards suggested seem to be costing a fair amount of money, so why not just give the equivalent in cash/bonus? Saves you the headache needing to organise IMO

    • enveloped on 28/12/2023 - 23:03

      If the reward I suggested cost just a small amount of money, wouldn't it be not worth the effort to find the better gift?

      • BewareOfThe Dog on 29/12/2023 - 09:48
        +18

        Tax. My ex boss paid me $1000, and $450? went to the ATO.

        • Craze on 29/12/2023 - 17:28

          Oh fair point, thanks for the reminder. I was given a token of appreciation by my boss which was part of payroll and a significant chunk went to taxman😑 ☹

        • Cronium on 29/12/2023 - 18:30
          +6

          International flights probably attract Fringe Benefits Tax too.

          • cnrmlj on 30/12/2023 - 15:30
            +1

            @Cronium: They certainly would. Unless the flight is for business, which it sounds like it isn’t.

        • RJM87 on 30/12/2023 - 17:18
          +3

          Yup. Additional days of Annual Leave may be worth considering if cash rewards aren't an option.

          At least the ATO can't take 45% of your time off ✌️

  • randomusername2017 on 28/12/2023 - 22:56
    +6

    handling cash is out of the question

    Company credit card getting a workout?

  • afoveht on 28/12/2023 - 23:03
    +19

    They work hard? Offer them a share in the business and share the struggle with them.

    • AlienC on 30/12/2023 - 00:54
      +1

      thanks for working so hard for the company guys here is 100 stocks of the opstrugglingbusiness worth $5 today but imagine in 10 years from now it will be worth $10 maybe

      • afoveht on 30/12/2023 - 01:20

        They are free to value it and refuse / make a counter offer / whatever.

        It shows the employer's faith in the employees.

        It shows the employees' own faith in the business - if they have none they should / will not be shareholders, if they do and they provide valuable input they should be afforded the opportunity to be in.

  • mapax on 28/12/2023 - 23:03
    +9

    I’ve got nothing useful to add, but good luck with your business.

    • Muzeeb on 28/12/2023 - 23:47

      Gift cards to all employees? Future content for the forums.

      • mapax on 29/12/2023 - 05:12
        +7

        Nah, I wouldn’t recommend that. I was trying that empathy thing you mentioned the other day, OP seems like they might be an ok employer.

  • sumyungguy on 28/12/2023 - 23:06
    +18

    You deserve every success for being an employer who genuinely values your people. If you asked them they'd likely say cash. But your accountant will be able to advise more tax effective gifts that are almost as well received. Consider too the generational differences in how rewards and recognition are valued.

    • braddsey on 29/12/2023 - 01:25
      +14

      100% check with your accountant.
      if your small business gives a cash gift of $2000, this is likely to be assessable income for your employee.
      similarly, if your small business gives a gift of greater value than $300, then it is likely going to be subject to fringe benefits tax.

      if you "enveloped" gives these gifts payed from non-company funds, then there is no tax liability as it is your personal money that you've paid income tax on.
      (assuming you're not doing cash deals on the side…).

      I'm not an accountant, but have been unpleasantly surprised by FBT in the past working for airlines. Have a read here:
      https://www.ato.gov.au/businesses-and-organisations/hiring-a…

      • spal on 29/12/2023 - 13:46
        +1

        I agree, that would be the case. A significant part of the good intentions will be taken up by taxes. There is really no legitimate way out of this situation.

      • ddhar on 29/12/2023 - 18:21
        +1

        My thoughts as well.

        Giving out non cash benefits won't save cash. The solar generator and plane ticket, on the surface, are not otherwise deductible to the employee and likely will attract FBT (effectively at 47% rate), payable by OP.

        Plus this seems like an uneven distribution of rewards. Are you going to gift everyone else something of similar value or are there people who will miss out? Easier to just arrange regular team outings (at a cost that falls under $300 exemption rule from FBT). Work flexibility, as mentioned elsewhere, will be greatly appreciated too.

  • boomramada on 28/12/2023 - 23:09
    +35

    Give them a paid day off on their birthdays.

  • Jimothy Wongingtons on 28/12/2023 - 23:13

    Gift cards? Like prezee so they have a huge range of options like grocery or ebay or amazon or petrol etc. You can use company cc to pay for it if cash flow is an issue (I assume this is the issue?..)

  • USER DC on 28/12/2023 - 23:14
    +2

    why not like coles/woolies/amazon GC ?? for their grocerries ??

    • oO0Dam0Oo on 29/12/2023 - 17:11
      +1

      Under $300 per month over 12 months no FBT to best of my knowledge.

  • jug123 on 28/12/2023 - 23:22
    +11

    Paid time off

  • freefall101 on 28/12/2023 - 23:36
    +1
    • Share scheme to get ownership in the company
    • Health insurance/life insurance paid for by the company
    • Any kind of paid time off
    • Vehicle/WFH enhancements
  • bobbified on 29/12/2023 - 00:00
    +6

    Cash is always good, but I think personal gifts (like what you're trying to do) shows your employees that you value them enough to have given them some thought. I would appreciate such gifts more than the equivalent in money.

    • orangetrain on 29/12/2023 - 00:21
      +2

      Cash is best. I'm not going to look unhappy when receiving gifts from the boss.

    • AustriaBargain on 29/12/2023 - 01:23
      +2

      Something tax free would be nice, something that isn't counted as payment and that employee is not "obliged" to declare to ATO.

  • AustriaBargain on 29/12/2023 - 00:39

    Pizza party.

  • Ruddaga on 29/12/2023 - 01:52
    -1

    Pizza Party.

  • Trance N Dance on 29/12/2023 - 02:06
    +3

    Just hand out cash bonuses, fringe benefit tax is a bitch. Otherwise give them a pay rise, or super co-contribution or something. Just be mindful of employees who have children and earn around $110k household income as you might kick them off family tax benefits.

  • morse on 29/12/2023 - 04:48
    +11

    Additional paid leave. e.g. not having to use annual leave for days between Christmas and New Years or another time that’s convenient to your business.

  • RMBC on 29/12/2023 - 08:15
    +1

    It is a generous thing youre doing, just be aware of the potential tax implications. Fringe benefits tax, or FBT, is designed to catch non salary benefots to employees alor associates of businesses. There are exemptions, although they generally are of low value, and won't cover what yourre describing, unless youre paying for this personally, ie it doesn't come from the business.

    FBT law is complex and can be very expensice. As others have suggested, a quick chat with your accountant will ensure you don't end up adding unnecessary expense. Non salary benefits have been exploited in the past, now FBT taxes them as if they were at the top tax bracket including medicare levy of 47%.

    No good deed goes unpunished as they say, so in many ways, a wage bonus to staff may actually be thr most cost effective way of providing the benefit

  • Sinnerator on 29/12/2023 - 09:02

    stop beating them (comes second after paying them)

    seriously, go out of your way to "communicate" with them in a positive manner, listen to them, say thank you, be respectful etc

  • azero on 29/12/2023 - 09:40
    +4

    My small finance company that has a 60mil a month turnover gave us a $1000 bonus a few years back and that s all they have ever done.

    So 2k is not a small amount for a bonus.

  • defaultess on 29/12/2023 - 10:30

    I think it's fantastic that you're looking at alternative ways to reward your employees.
    I would definitely value a plane ticket or something like the solar generator higher than the cash equivalent.

    A thoughtful gift for something that the employee would otherwise struggle to purchase / justify is great. Particularly if you can get a good deal.

    I'm not sure how many people you employee but a personalised gift for each would be pretty thoughtful. Good bosses/owners are hard to find.

    I usually give my team more annual leave or I'll try and do something simple for them and their spouse/family like a nice family dinner/staycation.

  • jrvb42 on 29/12/2023 - 11:18

    Could you shout them to a monthly company dinner? Buy an entertainment book and use the 25% off offers to save yourself a bit of money.
    That would show appreciation and maybe strengthen the team socially.

    Other than that, show some flexibility when they come to you with a request that might impact work.

    Kudos for giving a damn!

  • Cluster on 29/12/2023 - 11:25
    +2

    Wait, you have a struggling business but can afford to buy international plane tickets? That doesn't really add up.

    Employees tend to become a little cynical when it comes to perks at work. At my previous workplace the staff were fed pizza when they were told to stay back and work late at night. Extra pay? Oh no, but you get a few slices of pizza. One year when the employer didn't give a few hundred dollars in everyone's Christmas card there was much grumbling as people became entitled to receiving the money, rather than treating it as a gift.

    I think the thing that employees value most (apart from getting paid and having a pleasant workplace) is flexibility. Someone needs a day off at short notice? If the employer is open to that it goes a long way. I would recommend against having workplace events like going out to golf or whatever. It's difficult to satisfy everyone, and half the employees wish they were someplace else.

    • enveloped on 29/12/2023 - 12:22

      I think the thing that employees value most (apart from getting paid and having a pleasant workplace) is flexibility. Someone needs a day off at short notice? If the employer is open to that it goes a long way. I would recommend against having workplace events like going out to golf or whatever. It's difficult to satisfy everyone, and half the employees wish they were someplace else.

      Gold!

      Regarding struggling businesses that can afford to buy international tickets, a business with a few million dollars worth of assets and less than 10 employees and losing money at 50K per month is a "small business" by definition, despite it may appear big to individual bargainers. Such a "small business" may pay 2 to 5k flight tickets for FIFO helpers when in a bind because daily revenue (not profit) could be 20k and is just gone if the helper is not flown in, but definitely struggling and may close if the business environment is not favourable and casflow/spending not well managed.

      • furakoph on 29/12/2023 - 18:19
        +2

        How is your business still open when you're losing 50k per month? 600k a year?

        • enveloped on 29/12/2023 - 20:16
          -3

          Revenue at $1m to $4M having operation loss of 50k is normal. One way to make sense of it is to look at small business (let's say 12 employees), which has roughly $1m labour cost per year, so it's not hard to believe the revenue is $1m to $4m (think about your own job post salary compared to the revenue of your share in the company), then break down it is 83k to 333k revenue, operation loss of 50k is not a shocking news.

          • furakoph on 30/12/2023 - 17:03

            @enveloped: losing money is not operational cost.

            • FreshPrinceofKP on 31/12/2023 - 20:04

              @furakoph: If this was shark tank he would be recommended to take his business behind the barn and shoot it

  • DiscoJango on 29/12/2023 - 11:47
    +3

    Just do what every large corporate does: buy some home brand susages and 2 or 3 cheap pizzas from down the road, thank every employee for generating millions in profit for said corporation and call it a day! Oh and maybe let them leave 15 minutes early on the last day, that will secure loyality for life.

    • sumyungguy on 29/12/2023 - 12:14
      +1

      Meanwhile in the C-Suite…

  • GuitarXXX on 29/12/2023 - 11:57

    additional annual leave for free?

  • Davo1111 on 29/12/2023 - 12:06

    Pick one and provide your daughter for marriage

  • Baysew on 29/12/2023 - 12:30

    Sex & Drugs & Rock & Roll.

  • dylan345 on 29/12/2023 - 13:32
    +6

    Offer a yearly upskill budget and course time too each employee, this is a around about way of allowing your employees to be a investment that should eventually return to your business and usually helps them feel appreciated by the fact you value them and want to upskill them.

    work with them and allow them to pick a course or skill event that they want to do that will also help your business aiming to bring back these skills and/or sharing what they learnt with others. e.g a online marketing course, a face to face sales course, a sign language course, data managements course, whatever is specific to your industry but ensure they really want to do these courses otherwise your investment into them is wasted.

    I know recently my partner agreed to go 50/50 with the boss to go on a $5000 course that relates back to their industry, on the agreement that they present a summery of critical information to the office on return.

  • GordonD on 29/12/2023 - 15:19
    +1

    Just about anything an employer provides is a fringe benefit, and the employer has to declare it and pay FBT on it.

    Can anyone think of a benefit that gets around that?

    Giving them additional days off would seem to. Extra holidays. Longer annual leave. Reduced work hours.

    Ditto an improved workplace environment.

    • Jolakot on 30/12/2023 - 11:36

      Plane trip to a destination they want to visit for an in-person conference or supplier meeting with flexible return date?

  • hasher22 on 29/12/2023 - 16:34
    +2

    You must have a really small team to offer nice large incentives. 2k isn't small, plus that will be taxed to them unless you give them cash but your accountant needs to try figure out what are the implications and if it benefits you and your employees.

    To me when I was employed the things I look for
    - paid birthdays off
    - extra annual leave
    - extra sick leave for those employees who don't take advantage of it
    - early time off work, you could have a rewards program
    - pay rise each year that is not offending, once I got a 13c per hour pay rise.
    - bonus is nice but rather come into work with a team that gets along

  • Sammy Boi on 29/12/2023 - 16:38
    -8

    Why is it that you morons will sit on here making ridiculous posts and when a small business owner makes a legit post seeking advice and assistance you guys show that you are truly morons… This POS needs moderators or 2024 is gonna be the downfall of this so-called bargain website

    • Eeples on 29/12/2023 - 19:42

      Because a struggling small business that is losing 50k/month can’t afford giving 2x $2000 bonuses (or solar generators or OS plane tickets).

      Ie. the post is a nonsense post; and so some ppl post nonsense replies.

      I vote office party with pizza, booze and Uber vouchers at a local pub (not in the office).

      • enveloped on 29/12/2023 - 20:18
        -1

        I can't believe I'm here teaching Small Business 101. Let's consider an example: a small business with revenues ranging from $2 million to $4 million experiencing an operational loss of $50,000 is quite normal. To make sense of this, imagine a small business with 12 employees, incurring around $1 million in labour costs annually. Therefore, it's reasonable to expect revenues between $2 million and $4 million. This is akin to comparing your salary to the revenue contribution you make to your company. If the said business only generates $1 million in revenue, it implies there's no added value beyond salaries, not accounting for equipment or electricity costs. For a small business with 12 employees, a revenue of $1 million is not feasible; $2 million to $4 million is more typical and if the margin is thin $4m revenue is just a starting point - such a business can loss 100k a month easily with a 12 man team. Breaking this down further, it translates to monthly revenues between $163,000 and $333,000. Therefore, an operational loss of $50,000 isn't surprising in this context.

        • Homr on 30/12/2023 - 01:06
          +3

          If ur business is running at a loss, then the 2nd best thing to give your staff is a big heads up before you go into VA so they have plenty of time to find new jobs and ensure all their entitlements are fully paid

  • splicer on 29/12/2023 - 16:41

    Christmas Bonus in their pay with an accompanying letter of their valued effort through the year.
    Gift cards.
    Company dinner / lunch.

  • MaXcon on 29/12/2023 - 16:55
    +6

    An extra week of annual leave

  • MindGrenadius on 29/12/2023 - 17:25
    +3

    A Pizza Party of course. Nothing embiggens and inspires the Loyal Worker Bees like a Pizza Party

  • node modules on 29/12/2023 - 17:43
    +3

    a water bottle or 200gb free optus data

  • mrvaluepack on 29/12/2023 - 17:48
    +1

    Wow…all i got was a box of lindt chocolates from my boss. Can i come work for you?

    • AlienC on 30/12/2023 - 00:55
      +1

      Best I can do is 2 boxes of same chocolate but they are expired

  • try2bhelpful on 29/12/2023 - 18:05
    +1

    Whatever you do make it tax effective so have a chat to your accountant. Try to avoid the reward going to the taxman.

    Personally I like time off to relax and unwind after a stressful install. Perhaps if you set a deadline for something, and they beat it, then the rest of that time off is paid leave? You would need to pay them the whole time anyway.

    Personally I would talk to the group about what they would like to see. Do they want a bunch of smaller rewards through the year or a bigger bonus at the end of the year. As you are seeing here it is counter productive if the “reward” is derided and actually demoralises your group.

  • SpicyStew on 29/12/2023 - 19:46
    -1

    give them books on how to sustain and grow a small biz.
    small business failure rate is over 65% for first 10 years.
    you're welcome.

  • bauser99 on 29/12/2023 - 22:40

    Something that will help them improving their skills & future earnings - eg professional training, industry certification, a relevant university / TAFE subject

  • AlienC on 30/12/2023 - 00:51

    I still remember what my first supervisor gave me for my first year as a gift.

    S50 coles gift certificate.

    Still don't know how I feel about that I guess others have gotten wine or worse but still it felt like a slap in the nuts at the time.

    • ezekiel181 on 31/12/2023 - 18:16

      A supervisor is hardly expected to fork out hundreds of dollar for their teams' rewards from their own wallet. Unless they're given a budget (and likely had zero say in how big) that $50 is a pretty big gift.

      • AlienC on 01/01/2024 - 06:17

        yea

  • Homr on 30/12/2023 - 00:59

    100% WFH

  • Aerith-Waifu on 30/12/2023 - 02:56
    +1

    By cutting their commission 80 - 90% in the coming new year!

  • MessyG on 30/12/2023 - 07:52
    +2

    Some suggestions:

    Extra day of annual leave
    WFH if feasible
    Pay for a relevant course and provide the time off to do it
    Give your staff a half day off every month
    Improving the work environment - whether its food, or more space or getting an interior designer in

    Just don't be this guy…
    https://www.youtube.com/shorts/cVp7i6Qf9T8

  • gimme on 30/12/2023 - 08:08
    +1

    You're overcomplicating. Give them whatever you can afford in cash and focus your time and energy on turning a profit

  • Roentgenium on 30/12/2023 - 10:01
    +2

    As a public servant, hot water in the kitchens is considered a luxury. I've lost count the number of unpaid overtime hours to make sure someones support payments get through on time without any recognition from anyone higher in the business.

    So I understand where you're coming from in wanting to reward them but have limited options.
    My management training is a little rusty but you're taught everyone is incentivised by different things. It's not all about the benjamins,for some its the warm fuzzy feelings (obviously every public servant).

    If you're going to do anything monetary related, talk to your accountant to see if there are any good options (deductions) or dangers (fringe benefit tax obligations). However I don't think its realistic for a small business to be handing out huge cash bonuses, if the employees dont get that, they can move on.

    One of the many reasons people are loyal to a small business is because it has an enjoyable workplace atmosphere.
    A personalised hand written card or note thanking them for their efforts over the year would be a nice gesture. Mention the son in Spain, mention the solar generator. It shows your listening and taking an interest.

    I liked the comment on investment in education and training and one about flexibility. I've got some health related issues currently and my managers stance is, "I don't need or want to know why you need the time off. If it's for personal reasons, the answer is yes". It's a huge comfort knowing I don't need to explain myself and can accept the next available appointment, whenever that may be

    good luck

  • sir-screwball on 30/12/2023 - 12:11

    Pay them. Even a small amount.

    If you just come to them and say "Hey, you're a great employee and I feel I want to reward you. I would LOVE to give you a big fat cash bonus but I just can't afford it, as the business is still cash shallow. I am going to give you what the business can afford and as things continue to improve, you will get payrises and bonuses in line with our performance".

    A good friend of mine had their boss approach them the same way, and 4 years later she's on 150k and gets a 20k bonus every year. She appreciated the honesty and that's why she stuck around.

  • MrThing on 30/12/2023 - 12:26
    +2

    Clearly when a company has a massive bumper profit year and pay huge executive bonuses the best way to reward the workforce is to pay a proper wage, pay a good bonus, give them an Esky as a present, Pizza party from Domino's /s

  • TiredKitty78 on 30/12/2023 - 13:41

    Struggling small business
    handing out cash is out of the question

    Anyway, how can i hand out cash in the form of gifts so that the valued red shirt peasants don't associate me with the excess money i make off their labour and come to expect like, a yearly bonus or something?

    Ok. Look you're a capitalist pig like we all secretly probably aspire to be. But you don't want to increase their wage, and you're trying to pretend that's not it, and you're struggling with stealing their money.

    So. Give them a bonus. A once off. A 'hey, you've done great work, thanks for all you do'. You probably want to give the same to all employee's. Unless you want to get into the nitty gritty like other businesses, ok they worked 100 hours, i made 13% profit so i'll give them 1% of that profit rounded down to the nearest hundred.

    The better bet is probably to give all employee's a known from the start percentage of profit. So, you'll get a bitchin salary, money aside for expenses and slow periods, and then money that would just go into your pocket. So, staff - including you - get 20% profit end of financial year or whatever. The business made $100k profit. Staff get $20k. There's 4 staff, you all get $5k each.

    Though that is not a lot at all really. So yeah, i'd also probably go with a get what you're given $500 bonus once or twice a year. Or pizza.

    Just don't drive your lambo to work, eh? /jks but really….

  • Hangryuman on 30/12/2023 - 15:17

    as an armchair psychologist I've read that what employees want most is the feeling of being acknowledged and recognised for their efforts.

    suggest a laminated A4 headshot portrait photo of a smiling 'employee of the month' at the entrance where every customer can see walking in.

    and try to make it genuine based on something special you've seen them do - with maybe printed underneath a one-sentence story of how they went out of their way to help a customer - not a token 'everyone gets a turn' nonsense which becomes empty and meaningless.

    financial rewards tend to encourage cheating - you get more of what you measure

    in my first office job as a computer (my job title in 1977) calculating pension payment adjustments, monthly counts were seen by the manager, and I was called up for having lower counts than everyone else. I told him everyone else dug through the piles of forms looking for the easy ones to get a higher count, while I did the more time-consuming complex ones as more interesting to me. The manager was 'oh' and not sure if he believed me.

    in a real estate sales job where higher commissions were based on getting the listings, one guy sat by the phone in the afternoon when it was most likely to ring ready to snatch the phone on first ring before anyone else - he was like a rat - and got high figures - but was otherwise an unpleasant human.

    So yeah - be careful what you measure - many figures are easy to fake - like 5 star reviews I've stopped believing since you can buy 200 reviews from India for $200.

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