How to keep employees happy without a raise

It goes without saying that happy, engaged employees tend to be more productive and creative and less likely to quit – here are 12 ways to keep them happy without a raise

CREDIT: This is an edited version of an article that originally appeared on Business News Daily

While businesses should always strive to provide fair and competitive compensation, employee happiness isn’t just about money. Employees genuinely appreciate the opportunity to make a difference and be recognised for their contributions. 

Business owners and managers interested in achieving better employee retention rates can enact policies, offer perks and foster a company culture that boosts employee well-being and improves productivity. When employees can achieve a positive work-life balance and pursue a meaningful career path, everyone wins. 

How do you keep employees happy without a raise?

Beyond pay raises, experts advise the following 12 practices for keeping employees happy and engaged.   

Prioritise work-life balance to keep employees happy

Helping employees improve their work-life balance is key to ensuring happiness. “To engage the workforce and remain competitive, it’s no longer sufficient to focus solely on benefits. Top employers create an environment where employees feel connected to the organistion and have a positive work experience that’s part of a rich, fulfilling life.” – David Ballard, scientific advisor for Workforce Mental Health

Make employees part of the big picture to keep them happy

Employees want to be part of something significant and meaningful. “The best benefit you can provide to your employees is the opportunity to make a difference through their work and help guide the company’s course. Benefits such as clear and frequent communication on company happenings, individual and department direction, and big-picture company direction make all the difference in employee happiness.” – Anthony Smith, CEO and founder of Insightly

Be transparent and honest to keep employees happy

Communicating with employees transparently and honestly shows respect. “Feedback and the ability to understand employee concerns is important, but what you do after is critical to retention. You should always be transparent by sharing what you’ve learned and a course of action for addressing the issue. Transparent communication and a simple acknowledgement that we heard you can go a long way.” – Laura Grieco, director of human resources at Steady

Offer more vacation time to keep employees happy

Additional vacation time or a generous paid time off (PTO) policy will appeal to many employees. “Reward your highest performers with incremental vacation days. These employees are your superstars, so you can be confident they will get their work done as well as enjoy a few extra days of well-deserved time off with family and friends.” – Stacia Pache, founder and CEO of ItBandz

Encourage communication in common areas to boost happiness

Employee breaks can boost productivity, and creating a space for communication and collaboration can foster teamwork. “Businesses should take steps to create spaces where employees can easily communicate and share ideas. Casual conversations in the break room can become collaborative conversations. Make it inviting and effective, with nice furniture, tables, and snacks and beverages, if possible.” – Tom Heisroth, consultant

Create a career pathway to keep employees happy

Encouraging professional development can reassure employees they have a path forward with your organisation. “It’s critical for businesses to have regular career planning discussions with their employees. As part of training and development, make sure employees are aware of the different types of career paths or job opportunities throughout the company.” – Maria Kraimer, human resources professor at Rutgers University

Promote a positive work environment to keep employees happy

Company culture is crucial to employee happiness. “Happy employees make for a happy company. Within the office, we’ll publicly acknowledge accomplishments, provide a group lunch, reserve a prime parking space or change a title. We’ll also help employees to grow and develop, whether by taking on new desired responsibilities or challenges, taking courses to learn new skills, or furthering knowledge of the company by traveling on company business trips.” – Jakki Liberman, president of Bumkins

Build up employees to boost their happiness

Continually empowering employees helps establish and maintain happiness. “If you’re looking to keep an employee by giving [them] a raise, it’s already too late. Find people who share the operational values of your organization from the outset, test for fit early and allow growth opportunities to express that value.” – Zachary Watson, associate at Greenberg Gross LLP

Set an example to keep employees happy

Good leaders set an example and set the tone for office culture. “One can’t underestimate the importance of walking into the office as the boss with a smile on my face and making sure I give the same feeling of importance to everyone.” – Jon Sumroy, business consultant and strategic advisor at Poseidon Holdings Ltd.

Always say thank you to preserve employee happiness

Don’t underestimate the power of recognition and thanking employees for a job well done. “In my experience, employees rarely become unhappy or leave solely over money. When they do become disenchanted, it is usually because they don’t like their boss, aren’t engaged or feel like they have stopped learning. A positive culture and workplace environment helps a lot, as it encourages teamwork and communication, increasing engagement and opportunities for teammates to learn from each other. We also do periodic shoutouts to people at all levels of the organisation for great work or superior effort. These kudos cost nothing but provide important public recognition for a job well done, effectively compensating people in the form of social currency, which is highly valued.” – Gary Beasley, co-founder and CEO of Roofstock

Recognise and reward employees frequently to boost happiness

Showing appreciation for your employees goes beyond money. “Reward frequency is more important than size. Business feedback indicates that smaller, frequent positive feedback and rewards will keep people happy longer than a single large, infrequent happy event. Even the biggest awards or raises ‘wear out’ in less than a year, with most employees responding better to small doses every few days.” – Ron Friedman, author of The Best Place to Work

Offer benefits beyond the basics to keep employees happy

Creating a great employee benefits plan that includes health and wellness options fosters loyalty and happiness. “There are many ways to supplement salary by assisting employees in other areas of their lives. You can offer an extra level of life insurance or disability insurance for employees to protect their incomes. Other ancillary benefits, such as dental, optical and wellness, are all well received by employees. And gym memberships and transit benefits are great perks to keep employees happy and healthy. It is important to provide higher benefits so your employees know that you truly care about them and their families.” – Bobby Hotaling, founder of Hotaling Insurance Services