With the economy taking baby steps toward growth and improvement, salary-increase budgets for employers are still limited. According to the Society for Human Resources Management and research by Sibson Consulting, these budgets will rise only slightly this year, about 3 percent, continuing the now three-year-old trend. Still, employees need to feel as if they are being rewarded for their hard work and professional development each year, even if a raise is not an option.
To prevent a decrease in company morale and valuable employees looking elsewhere for validation, Forbes recently suggested 10 substitutes for salary increases. Before you start scrolling through the list, however, understand that open communication with employees is key. They need to understand the 'big picture'? of what is happening within the company, what you're hoping will happen over the next year, and most of all, that you are being honest with them and will compensate them when money is available for salary increases again.
Until that time, take a look at Forbes' list of salary-increase alternatives to offer employees:
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