As small business owners evaluate different strategies to grow their companies, one method is to provide their employees bonuses, other incentives, or a combination of the two as the business achieves goals and milestones. This may seem like an unnecessary expense, but it is an effective way to encourage employees to continue working hard and to attract and retain the top talent small businesses require to continue growing. And, success in building a business comes in large part from motivated, high performing employees who have pride in both their work and the business.
Here are some different bonus & incentive plans that small business owners can consider for their employees:
1. A popular plan is Profit Sharing, which is plan in which employees receive a share of the profits generated by the business.
2. Another common plan is a Performance-based bonus, which pays employees a percentage of their salary when the company, the employee, or both achieve specific agreed to targets.
3. Providing gifts or gift cards, especially around the holidays,is also an excellent way to reward employees for their hard work.
4. For business with limited budgets, providing employees with extra paid time off can also be used to reward employees. All employees appreciate extra time to spend with family and friends or to take a vacation.
5. Company paid meals, team dinners, and company parties are a great way to not only show appreciation, but are effective at building and maintaining a strong team amongst employees
6. Never forget to give positive feedback to your employees. Recognizing and celebrating your employees hard work is one of the best motivators.