No matter how much your employees might love their jobs, not one of them would be willing to do it for free. One of the top reasons for leaving a company is poor compensation or lack of rewards.

Compensation management is one of the most critical functions of Human Resources, encompassing not only wages and salaries but direct and indirect benefits. Many factors come into play when determining compensation. These include internal factors like budget, department/salary structure and opportunities for advancement, and external market factors like competition and regional economic health. Obviously, it’s a complex function and not always one you can easily influence or change.

Fortunately, there are ways to reward employees that don’t involve payroll. They’re easy to execute and go a long way towards keeping good people in good companies like yours.

Implement and maintain a formal recognition program. You know the drill: 5-year, 10-year, etc. The secrets for success? Keep employees aware of the program so they have something to look forward to and work towards. And update your selections on a regular basis. Ask employees what they want in a program. Or count on an expert in recognition like Award Concepts for guidance!

Encourage informal recognition. I’m talking low-cost to no-cost: a Starbucks gift card for perfect attendance. A day or an afternoon off for a deserving employee. A pizza lunch or coffee and donuts for the department. Even a simple email or a shout-out at a department status meeting makes employees feel appreciated.

Cultivate a positive corporate culture. When you make your company a pleasant, upbeat place to work, you motivate employees to give their best efforts…and stick around! See Corporate Culture 101: Steps to Success for more information.