Monday 10th May 2010

Rewarding Employees' in SME's

Rewarding Employees without the Big Company Luxuries

It can difficult for many SME’s to decide how to reward their staff for their commitment, hard work and loyalty. Judging from some of the feedback we have had from different employees in SME’s over the years, whilst bonus schemes, private medical care and flexible hours can be seen as a big plus and a draw to bigger companies, it is actually the role itself and the premise of succession planning, which may have the most influence.

Why Employees really leave

Many employees we have spoken to have moved on because their role had not developed in the way they expected;

• Either they were given responsibilities which did not play to their strengths,
  
• They have been left behind while others have progressed or;
  
• The role itself did not compare with their initial expectations.

Create your own Carrot

Behind this all, is the notion that when advertising and filling a position, it is important to think about where you would like to see that role going – if that person excelled in the role – how would the role progress and fit within the structure. In this way, it is important to:

• Level expectations when the employee begins,
  
• Effectively manage performance so the individual progresses and;
  
• Ensure that the role progression plays to the individuals strengths.

Structure and Succession - key factors

It is prudent to assume an annual bonus or salary increase is going to guarantee the loyalty of employees, when ultimately, they have other needs like career progression, stability and a feeling of achievement within their role. In order for a company to meet these expectations, they must have:

• Clear and communicated business objectives
  
• Create succession planning for all roles and;
  
• A solid HR structure in order to maximise the employee’s performance and effectiveness.

SME’s can play to their Strengths

As a growing SME with big ambitions, it is a perfect position to be in order to convey enthusiasm, aspirations of business goals and a team working atmosphere – so employees feel part of the action and have a clear sense of where their role may lead.

Of course, one pull factor that I have missed is a steady supply of tea and biscuits – our team certainly place significant value on this!