Corporate bonuses decreased by an average of 25 percent in 2008, and experts are predicting that companies will continue operating under reduced budgets for at least two more years. To compensate for slimmer compensation packages and retain valued employees, companies will need to boost morale in other ways.
Here are some tips on how to retain talent when budgets are tight:
- Communication from Management. Employees want to be regularly informed and know what’s happening around them – even if the news isn’t positive. Status reports from management give employees a sense of visibility and control.
- Give Employees a Chance to Talk. Periodic “Town Hall” meetings are particularly effective and give employees an opportunity to voice their concerns. It might even be an opportunity to get some fresh ideas.
- Training and Development. This is a great time to cross-train your team and utilize the people who have institutional knowledge about your organization. Investing in training and giving employees an opportunity to broaden their skills demonstrates an investment by the company in their future. Training and development initiatives may also present an opportunity to identify top performers who can someday lead the team when times are better.