Nearly every employee has the goal of earning promotions throughout the span of their career. Moving up the ladder is what makes staying loyal to a company worthwhile. However, this means that company management teams need to plan for the costs of promoting their best employees on a regular basis.
The good news is that-outside of raising salaries-there are multiple options for promoting employees that do not center strictly on financial compensation. It doesn’t have to “break the bank” every time another employee is promoted.
Here are some ideas for helping employees grow in their careers and incentivizing the workplace-without blowing the personnel budget.
Offer More Perks to Motive Employees
Should your employees seek promotions, you can make it happen without breaking the bank. One such method is to offer more perks for these employees. When an employee earns a promotion, you can congratulate them with a nice gift card and then information about their new perks. These perks can be:
- Additional paid time off
- longer paid lunch times
- A new office or furnishings
- Membership to a health club
- Flexible scheduling options
- Corporate travel discounts
- Opportunity for professional training
Increase Responsibility and Respect
What companies need to understand is that not every employee is seeking a bump in salary when they look for a promotion. Instead, they are looking for added responsibilities. This is an excellent time to hand your employees more responsibility in their current position or a new one. You can also hand them a high-profile client account or put them in charge of a department as part of their promotion, instead of just handing out a massive raise in their salary.
Upgrade the Job Title
More often than not, an employee is likely looking for a new and better job title when seeking out a promotion, not just a rise in their salary. For example, a junior-level accountant may want to be known as a senior accountant to grow in his career. This is an excellent way to keep a strong hold on the finances at your company.
Employees looking for promotions love to brag about a new title to their friends and family members. They also like to include this on their resume and social networking profiles as a sign of stepping up in the industry. You can easily make them happy by providing them with a new title, but make sure the title comes with added duties and responsibilities. You do not want it to be an empty-handed promotion.
Offer a Performance Bonus
If your company’s budget is too tight to offer an increase in salary for an employee who is due for a promotion, you can consider a one-time bonus based on their performance. This will make the situation easier to handle because you will not be handing them an empty promotion.
Instead, let the employee know how much they mean to the company by providing them with a bonus for their promotion. If it is possible, you could let them know that an increase in salary is coming within the next six months-if they can sit tight.
Remember, employee promotions do not always have to come with a big increase in salary. Choose one of the alternatives in this post and you will still keep your deserving employees happy and productive for the long haul.