Holding on to your talent in hard times

While pay rises may be off the cards for many people, some firms will be on the back foot - unable to meet salary demands on one hand but wanting to retain their valuable staff on the other.

One organisation that has to struggle with paying less than the commercial rate for staff is the Mental Health Foundation.

Its CEO Judi Clements says her organisation attracts many good people because they are given a satisfying and supportive work environment.

"People enjoy it here because they get jobs that they have some degree of control over," says Clements. "We have jobs that have to be done - like everyone else - but we like to give people the opportunity to work in an area where they have a particular interest or skill - so long as that is compatible with getting the job done."

Clements says her organisation offers a flexible working environment with some working four 10-hour days instead of five eight-hour days. "We try and accommodate people who want to work less than a 40-hour week, so there are part-time options," says Clements. "And we already operate a nine-day fortnight for some staff."

The foundation gives staff opportunity for personal development with options to go on external courses. And managers can take part in learning groups that are held every six weeks.

"This is quite unusual in New Zealand's NGO sector," says Clements.

The group get-togethers are designed to address issues, but not necessarily end with solutions. "It is development and learning - not training. People come away with ideas rather than solutions," says Clements.

Clement's advice to managers facing staff who want more than they can give is to be honest.

It's a view shared by Jane Walker, director of executive recruitment firm H2R. She says for people who firmly believe they deserve more money, talking it through is the way to go.

"Have an open dialogue with your manager about the situation and maybe consider deferring expectations until things improve," she says. "However, if you are in an industry sector that is performing well, and some are, then push for the recognition of performance in terms of promised pay increases."

Walker says good staff are happy just to have strong leadership, good communication, a positive attitude and recognition for their hard work.

"It will improve," she says.

But until it does, what rewards can staff realistically expect for picking up the work of staff who are not replaced, and for going the extra mile for their employer and its clients?

Walker says firms are coming to the party with shorter working weeks and providing increased flexibility for staff. Training opportunities are also on the agenda, she says.

Carol Dallimore, general manager at recruiters OCG, says most staff are philosophical about not getting a pay rise "as they understand the economy is really tough".

"No one enjoys restructuring or making roles redundant," she says. "There is a need by both employers and employees to be flexible, to be able to take advantage of all opportunities that do exist out there."

She says top of the list of alternatives to more cash are flexible hours, four-day weeks, and travel and lifestyle incentives such as free gym membership.

"Top talent is still hard to secure," says Dallimore. "Employers are looking at their head count but also to ensure they retain top people who have an impact on the bottom line."

Jane Kennelly, director of Frog Recruitment, says this is the year to "love your job".

"However, we caution employers to be consistent in the way they act," she says.

"In one sales business the boss explained the need to staff to cut costs and trim expenses but then turned up in a brand new car ... which resulted in damaging the trust with staff."

Kennelly says she has seen more investment in training and development dollars in lieu of pay rises.

"Above all - open, clear communication is essential in times like this. Strong leadership is required."

She says few of her client's companies have talked about salary increases this year. "They are managing the expectations of staff to expect a year without increases, or decreases, in certain instances.

"It's fair to say that the days of 'beating about the bush' are over, which is not necessarily a bad thing. Frank and open communication is good," says Kennelly.

"Sadly, we are also hearing a few reports of very poor communication around the redundancy issue by employers which is unfortunate; such as the Wellington CEO who advised the Auckland staff via email of their impending redundancies."

A white paper released by GlobalForce, a provider of employee recognition programmes, reports that with the cash bonus and annual pay increase pool drying up many staff are choosing not to work as hard because their goals (and linked incentives) are out of reach.

The company says studies have proven simple recognition delivers better results than cash, and a Japanese National Institute for Physiological Sciences study found that "paying people a compliment appears to activate the same reward centre in the brain as paying them cash".

So perhaps one answer to keeping staff sticking with you - through thick and thin - is the basics of saying "please" and "thank you".

* Cashless rewards

Here are ten things you can do for staff that don't involve pay rises:

1.Introduce flexitime

2.Offer staff a 10-hour day so they can work a four-day week and save on travel expences

3.Free gym membership

4.Financial advice to help staff budget

5.Help staff achieve job satisfaction by giving them jobs they enjoy doing

6.Support staff by listening to them, mentor them and provide positive help

7.Ask staff to suggest ways in which you can help them - they may surprise you

8.Engage your staff with the company and its customers

9.Offer staff discounts on company products

10.Provide staff training. Your staff will do their jobs better and create fewer errors

* Contact Steve Hart at www.SteveHart.co.nz