Can't Offer a Raise? Try These Benefits Instead

"Can I have a raise?"

That's the question that keeps SME employers up at night. We understand, it's not that you don't want to give them a raise (particularly when they earned it), it's just that you don't have the budget right now.

How do you explain this to them? Well, it is best to just be honest and explain the situation. Remember, your employee appreciates your honesty and would understand if there's a legit reason behind it.

Though you should tell them when a raise may be possible and schedule a date to revisit the conversation. For now, you can offer these perks to help fill the compensation gap. Let them know how much you value them as a member of your team.

1. Bonuses

A permanent salary bump may not be possible at the moment, but a one-time bonus can help to improve your employee's morale. Not to mention, a big boost to their bank account. It also lets them know that you're serious about compensating them even more as soon as you can.

2. Flexible working schedule

You should try to give more flexibility to your best employee's schedule. For example, let them come in earlier and leave earlier or vice versa. Giving them the chance to start 40 minutes later could let them see their kids off to school or drive their spouse to work.

You could also let your employee work four 10-hour days instead of five 8-hour days.

3. Ability to work from home

If you allow your employee to work from home once or twice a week, they'll be able to save money and time on transportation and lunches. It might not be possible to offer them a raise, but you can provide a better work-life balance.

4. Half-days

Can’t offer a whole day off and working remotely isn’t an option, either? How about letting you best employees work one half-day a week? You’ll be amazed by how much they will appreciate an extra four hours back in their schedule to take care of errands, spend time with family or just relax. Maybe, just maybe, you could extend this to the whole office, too? Summer Fridays, where entire companies close early every (you guessed it) Friday from June to September are becoming more commonplace each year.

5. Extra (paid) time off

Many people have had to cut their dream vacation short so they'd be able to make it back to the office by Monday. So here's a thought: Give your best employee a few extra days of annual leave.

They will feel appreciated and your business will benefit when they return feeling refreshed, re-energised and ready to take on the world.

6. Transportation/parking benefits

As an employer, you can help with your employee's transportation and parking expenditure. Offering a stipend for transportation costs can improve your employees' financial burden.

For example: pay for their parking spot or commuting

Between the paying for trains tickets, late buses, high gas prices, tolls and avoiding that old crater-sized pothole every day, the price of commuting is both monetary and mental. Offering a stipend for transportation costs can ease a bit of anyone’s financial burden.

If you need more ideas for employee benefits, here are some more employment benefits ideas.

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Source: Career Builder