For small businesses looking to improve staff retention, a rewards strategy could be the perfect way to cut HR costs and reduce staff turnover. By implementing an effective workplace incentives program and selecting rewards specific to employees, business professionals can transform their culture and significantly reduce recruitment costs.
Incentive programs are not without their own expenses. But for companies that invest in rewards, the results can be significant. Benefits such as saved capital, improved engagement and heightened productivity can make employee retention and engagement strategies extremely valuable.
In this article, we explore three ways how small businesses are using digital tools to inform their employee rewards programs.
Employee retention: Saving money and skills
It costs organisations a staggering $18,982 to hire one employee, according to research by ELMO Software.
For a scaling SME, not needing to invest as heavily in recruitment can result in serious savings. Telephone answering service provider, Moneypenny, has connected its employee rewards program with a reduced need for external hiring support thanks to happy employees recommending their workplace to others.
Moneypenny has made employee engagement a priority over the years, with rewards at the heart of its strategy. Its “Pick and Mix” incentive offers rewards specific to each employee’s preferences or stage of life.
This has contributed to a staff attrition rate of 1.4% and more than 3,000 unsolicited CVs and applications. The business can now cherry-pick top talent ahead of market competition, which leads to a stronger customer-facing business.
Incentives improve employee engagement
For Moneypenny, heightened engagement happens because of employees using the social business tool, Workplace from Facebook. Moneypenny CEO Johanna Swash believes that signs of social engagement through the app are evidence that the company’s rewards are successful.
“Every member of the company’s workforce uses Workplace from Facebook to communicate with each other. This has led to improvements in how we problem solve and in fast-tracking productivity without the need for pre-planned meetings and discussions.”
She added: “As well as our great staff attrition rate, our return to work from maternity leave stats have also improved from 85% to 99% since using the app. It eases their transition back to work as they already feel connected to what’s going on in the office.”
From employee rewards to business ROI
An American Express Business Card helps businesses collect Membership Rewards® points which can be redeemed for a wide variety of travel, shopping and entertainment rewards that could be used for employee incentives and recognition.
