10 Ways to Motivate Employees

Budget-conscious small business managers are always concerned about getting the most from their employees, especially since entrepreneurs usually can't offer big-company perks like stock options, cars or first-class travel. Here are 10 techniques that can help make your valued employees feel happy and committed. Experiment with several in your business. You will find that different employees have different motivators, but that the basic principles of opportunity and recognition will always serve your employees well.

Give authority
Having responsibility without authority – such as constantly having to seek permission for routine decisions – can quickly sap motivation. Yet enabling employees to perform their jobs fully is one of the hardest tasks an entrepreneur faces. Many entrepreneurs are used to making all important business decisions and many unimportant ones. The founder's ability to transition from "doer" to "delegator" is one of the major contributors to a small business' growth. Extending trust for example – by allowing salespeople some flexibility in pricing or delivery terms – can be a major factor in building a business, and a great way to make employees feel productive.

Offer schedule flexibility
Here is a way to turn your company's small size into a big advantage: let your employees know that your focus is on the task, not the time in the office. Accommodating child or parent care, plays, soccer games, and other personal commitments demonstrates trust, which is a tremendous loyalty generator.

Let staffers work across tasks
Most people thrive on a variety of challenges, with the opportunity to learn new skills and to contribute to the company in multiple ways. While everyone has tasks that have to be done, the more opportunity you can provide to employees, the more satisfied they are likely to be. A side benefit is that you can learn about the tasks that employees handle best and worst, to determine how their responsibilities can evolve to maximize their contribution to the company.

Provide training
Many small business owners simply feel they don't need or can't afford to offer training beyond what is provided on the job. Keep in mind, though, that training is not just time out of the office. It can help employees to be more productive and contribute to your business in ways that you might never have imagined. Consider creating a budget for training key employees, and let them come to you with suggestions for courses. Also consider giving the balance of each person's education budget to them as a bonus or in some other form to make sure that they place a high value on the courses they take.

Use innovative compensation
Financial bonuses can come in many ways other than salary. For example, instead of giving a key employee a bonus, establish an educational fund for their children, or spring for a gym membership. The dollar amount may be the same, but the personalization and thoughtfulness you demonstrate can make your employees feel like they are working for someone, not something.

Tolerate mistakes
The way you handle employee mistakes is a critical component of their loyalty. The best way to handle them is to prevent them by setting guidelines and communicating company values. Another way to prevent mistakes is to help employees make important decisions, without making decisions for them. But when an employee clearly could not anticipate the outcome of a legitimate business decision which later goes awry, by far the best course of action is to let them know that they are still a valued employee – if anything, even more valued since they have learned a useful lesson for the company.

Foster open communication
Encouraging employees to air their grievances or hash out work issues with you on an informal basis is a great way to make them feel respected. Ask for their feedback on your own or the company's performance, and implement the good suggestions. On a personal level, let employees know how they did immediately after a task. If they did well, praise them publicly; if not, provide guidance in private.

Discuss long-term potential
You can minimize turnover by letting key employees know that they are valued, and what is in store for them down the line. Make the time to conduct regular performance assessments, including specific examples of the employee's achievements and development areas as well as asking what they would like to do. Most importantly, be sure to follow through on the promises you make and to hold employees to the expectations you set.

Treat employees fairly and equitably
Employees want to contribute, and they want to be recognized for their contributions. Reward good employees in proportion to their contribution, and provide opportunity for everyone to be recognized for something. By the same token, recognition given undeservedly, or infractions of company policies that are not addressed can create a sense of inequity and dissatisfaction.

Ask your employees what motivates them
Be up front! Many employers struggle for years to figure out their employees, offering a bonus here, an afternoon off there, or a word of praise once in a while. The best way to figure out how to make your employees happy is to ask.