The 2010 World of Work report conducted by Randstad, a HR company, found that a mix of employee rewards can be beneficial to employers, employees, and help improve customer retention. According to ComputerWorld, the study demonstrated that employees are more interested in a variety of rewards and incentive programs, rather than solely basing their contentment on pay raises.
The study noted that remuneration moved to the second most important factor that will keep employees put. The top ranking factor is an employer’s brand. This is a major change considering that remuneration was seventh of the prior year’s list.
"The key to any incentive is to know your staff, know what their key drivers and motivators are outside of money," explained Michelle Pearson, manager of Randstad’s IT division.
Randstad went on to advise that while many businesses may not be in a position to “offer significant raises,” they can use other incentive strategies to help curtail employees from jumping ship. Affordable incentives that might be offered include: gym memberships, and parking spots.
In another article highlighting employee retention, Purdue University management professor Brad Alge told Allbusiness.com that keeping employees engaged and motivated is a “critically important challenge" for employers. A number of studies estimate that “the cost of replacing one employee can be as high as that employee’s entire yearly salary.”