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Incenting Employees when Salary Increases
Aren’t an Option

Your organization, like most other American businesses, may be struggling to manage your cash flow in the current troubled economy. Even large employers are scaling back, taking proactive steps to remain solvent. If reducing salary increases is on your agenda for this year, you may be wondering what else you can do for employees to motivate and reward them for their hard work.

Fortunately, a trend that is gaining widespread approval among businesses of all sizes – flexible work schedules – can reward employees and help your bottom line simultaneously. According to Ellen Galinsky, president of the Families and Work Institute, “Telecommuting, flextime and the like are good for both employers and workers when set up properly. These sorts of arrangements are maturing from a mere carrot used to hire workers to a fundamental way of doing business in a global, demanding economy.”

And there’s no doubt that employees appreciate flexibility in work schedules. Increasingly, both working mothers and fathers are stating their desire to spend more time with their families. Other employees value the creative “space” they feel when working outside the traditional 9-to-5 office environment. And another group sees flexible work scheduling as a way to make ends meet when they need to work more than one job. Some employees simply value being able to shift their work hours around as needed, without being penalized, while others are taking advantage of the growing trend of “homeshoring” – or hiring employees who work exclusively from home.

Many employers skeptically remember the frivolous “flexible work” policies that abounded in the 1990s, including bringing pets to work. But businesses have learned that when flexibility is integrated intelligently into the workplace, it can actually improve productivity and financial results as it increases morale and employee loyalty. What’s behind the change? More organizations are focusing on employees getting the job done, rather than employees working a certain number of hours per week.

Keys to incorporating new flexible work policies include setting up clear expectations from the start. Consider drafting a flexible work agreement that details your expectations, with statements like:

  • The employee’s work schedule does not interfere with normal interactions with his/her supervisor, co-workers, or customers
  • The employee’s schedule does not adversely affect the ability of other company employees to perform their jobs
  • The employee assures his/her accessibility to co-workers who maintain the company’s regular working schedule
  • The employee’s paid leave will be earned and used in the same manner as prior to this flexible work arrangement agreement and be subject to all other applicable company leave policies

It’s also important to ensure that technology is helpful, and not a burden, for employees working remotely. Consider a trial period for employees who begin working from home for the first time, to give you and them the opportunity to ensure that their home phone, internet, fax and other capabilities are acceptable before agreeing to the arrangement indefinitely.