Make Your Employees Happy Employees

Best Buy CEO Brad Anderson did something unusual in May. Rather than accept 200,000 stock options (worth about $7.5 million), he gave them to nonexecutive employees. While Anderson's decision is a rare act of generosity for most executives, the lesson is an important one: Treat your employees well.

Rewarding Employees

Toby Velte, former CEO of FireSummit, Inc., used to keep the troops happy with a game room, free pop, company outing and afternoon network video game sessions.

"Tech employees look for technically cool work," observed Velte. "They wanted three things: first, for their work to be technically challenging; second, a good work environment; and third, good pay."

While the company didn't offer the salaries of comparable companies, Velte's employees seemed happy.

"We paid 15 percent less than other companies," said Velte. "But remember, pay was number three on the list. I never had one person quit."

Michael Monroe Kiefer is a management trainer at North Hennepin Community College's Center for Training and Development and author of the book "The Powermind System." He notes that while incentives are in place for individual accomplishment, teamwork should not be overlooked.

"Companies are trying to foster teamwork but only rewarding the individual," said Kiefer.

By rewarding just individuals, it sends a mixed message; while companies encourage teamwork, individual rewards, alone, cultivate unhealthy competition. A better solution, suggests Kiefer, is to reward both the team and exceptional individuals.

"That fosters teamwork," said Kiefer. "And without individual recognition, there's no incentive for your superstars to perform."

Party Time

That doesn't mean the company has to spend money hand over fist bringing incentives to employees. Even "employee of the month" recognitions can be motivating.

In fact, notes Kiefer, simply offering up money is a common mistake.

"It doesn't mean a lot to employees," said Kiefer.

A better strategy is to offer company get-togethers, like picnics and holiday parties.

"It doesn't cost the company a lot of money for a party," said Kiefer. "It's a lot cheaper than giving everyone $100 bonuses."

The company party isn't just a time for hamburgers or eggnog; it's also an opportunity for company staff to bond - giving employees from different departments a chance to spend time together.

"People talk together, and it fosters a lot of team building," said Kiefer. "It causes barriers to come down."

Company parties were one of the first perks axed when the economy took a dip, but this might be one of the more cost-effective tools for building company morale.

"Once (companies) eliminate the parties, they don't bring them back," said Kiefer. "Then they wonder why there are so many problems."

The best course of action is to find out what will motivate your employees.

"Let employees tell you what they want, whether it's gym memberships, free pop or whatever," said Velte.

Also, don't let dollar signs get in the way of rewarding employees.

"There are a lot of creative options that don't cost a lot of money," said Kiefer.

On the Web:

Michael Monroe Kiefer's Web site is located at www.powermindtraining.com.