As A CEO I learned one tried and true thing- money doesn’t solve your problems and it will not make employees happier or more loyal. I always stress business owners should consider rewarding employees weekly, not yearly. And I don’t think money should always be the reward. Here’s why;

Employees make mistakes. CEOs make mistakes. However, little mistakes are often forgotten by the time an annual review rolls around. I try to make a habit of immediately correcting and then forgiving. I believe in second chances. A simple correction and then dropping the subject is a reward in itself.

Say thank-you. Yes, thanking an employee for his or her time can be rewarding. Don’t wait until an annual review to say nice things and recognize talent. I schedule a different day each week to walk around my office and to personally thank each employee for something that he or she did that week. It makes a huge difference with their attitudes and when I have to ask someone to work on a Saturday- it is easier.

I also tell employers who are strapped for working cash to offer an incentive option upon any review. This can save you money when it comes to employee raises. Give the employee an option. Instead of a 5% raise, offer half and offer an alternative. 2.5% doesn’t seem like much of a raise- especially after taxes. However, an extra day off every month (with or without pay) does work as a reasonable option. More employees will take an extra day off (and be happy with this perk) versus a low-level raise.

I encourage you to get creative, get personal and promote a happy work place.