Small business owners often have a very tight budget and cannot afford the big yearly bonuses or free cruises that some major companies use to reward good employees. Many small businesses think that motivating employees to do their best without giving big rewards isn't possible. However, monetary rewards are rarely mentioned as ways to improve employee morale on a long-term basis. There are many great ways to get employees excited about their jobs without spending a lot of money.
One of the ways to make employees happiest is to be flexible on scheduling. If it is possible for an employee to work from home one day or come in earlier to be able to leave earlier, these are really great reward options. For a business where this type of schedule isn't possible, another option, such as allowing employees to work four 10-hour days and take a three-day weekend on a rotating basis, may work better.
Offering job-share options to two moms or dads who want to work part time and are willing to share the benefits of a full-time job is another way to keep employee morale high.
Believe it or not, a simple thank you can mean more to an employee than money. The key to thanking employees is to be specific and timely. Don't just come up to someone three weeks or three months after he has done something and say something along the lines of "Keep up the good work." Instead, go to the employee as soon as possible and say, "David, thanks for your hard work on the ABC Company project yesterday. Your idea to have the company use a different vendor really helped them cut costs and showed them that we care about keeping them happy." Your employee will know that you truly do appreciate him because you mentioned a specific instance where he was helpful.
It may be impossible to give your employees an all-expense-paid cruise, but a 10-dollar gift certificate to a local discount store as a thanks for a good job or a $25 gift certificate to a local restaurant on their birthday is probably within your reach. Even small rewards can make a big difference to employees, because for most people, the thought really is what counts. Year-end bonuses are also always a great way to improve morale, even if they aren't very big.