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Retirement Planning for Small Business Owners

It’s not uncommon for business owners to consider their businesses as their retirement plans. At retirement age, the plan is to sell the business for cash, or to give the business to a family member in return for a share of future wealth. It might work out, but it’s risky, because if your business fails, your retirement plans end up in shreds. Short of bankruptcy, a troubled business would be hard to sell and bring in less money than anticipated. Many owners might face the prospect of delaying retirement until the business “picks up.”

It need not be this way. An orderly approach to retirement planning will help you provide for your later years independent of the ups and downs of your business. Here are five steps to take to save money for retirement:

Do the math:

Figure out how much money you will need for your retirement lifestyle, especially if you don’t receive a lot of money from your business. This is frequently a wake-up call to get your retirement plan moving. Check out online retirement calculators from financial service companies such as Vanguard, TIAA and Fidelity and many others. Use these resources to help you nail down future spending.

Get help:

You are probably an expert on your business, but don’t assume that extends to retirement planning. If you don’t have a solid finance background, hire a financial adviser to organize your retirement planning. It’s a good idea to use one who charges a flat fee rather than one who takes commissions on your trading. The best ones usually have an accreditation, such as Certified Financial Planner.

Begin a diversified retirement plan:

You don’t need to spend a fortune on your retirement plan, but you should make a long-term commitment to it. It will cut your current taxes and allow your money to grow tax-deferred. Here are for options that make sense for small businesses, suitable for sole proprietorships, partnerships, limited liability companies and corporations:

  1. SEP-IRA: A good choice for one-employee companies, because you must fund the plan for all employees. Its works like a traditional IRA, but in 2018 you can contribute up to 25 percent of total compensation or $55,000, whichever is less.
  2. SIMPLE IRA: A plan for owners of companies with up to 100 employees. You and your employees make pre-tax contributions directly from your paycheck. The 2018 contribution limit is $12,500, or $15,500 if you’re 50 or older.
  3. Solo 401(k): Good for self-employed. You can contribute up to 25 percent of your compensation, plus up to $18,500 ($24,500 if 50 or older) in employee contributions, for a total maximum up to $54,000 in 2018.
  4. SIMPLE 401(k): For business with 100 or fewer employees. You and your employees can contribute up to $18,500 a year. You can borrow from your account and make no-penalty withdrawals under certain circumstancees.

Invest simply:

Index funds are simple and cheap, and you will always get average performance, year after year. If you know when you are going to retire, you can buy into a target-date fund that adjusts its investments based on your age. Consider also a REIT investment.

Pay yourself first:

When business gets slow, it’s tempting to cut back on your contributions, and that might occasionally make sense. But resist the temptation if you can, your retirement will thank you for it.

3 Steps to Creating a Strong Company Culture

Any time a group of people interact with one another on a regular basis, an individual culture forms. As such, each company has its own company culture, which can determine to a large extent the success of the organization and the satisfaction of the employees. While a culture can organically form, managers and business owners can take steps to shape a strong and positive company culture with the steps below.

The Importance of a Winning Company Culture

A company culture is “an intangible ecosystem” according to a source, which involves “the ideology of an organization.” When your company has a strong company culture, it influences a multitude of factors that can truly make or break the success of your business. Everything from more effective teamwork, productivity, employee loyalty, reduced turnover and help with attracting top talent.

Steps to Create a Strong Company Culture

The truth is that regardless of how talented and experienced your colleagues are, if you don’t have the culture to promote their attributes, they won’t be able to thrive. Follow these steps to create a company culture that develops winners:

1. Decide What Your Core Values are

A company culture should be based around the core values of the company, which are created by the business owners. Other than making a profit, what do you want to see from your employees and how do you want to shape their lives and overall society?

If you want to involve a philanthropic initiative, build your culture around that. Is your focus is more closely aligned with teamwork and productivity? Consider how to foster relationships between your staff members to promote collaboration. Do you want to be known as a company that offers the best customer experience? Put strategies into place that reflect that desire.

The fact is that a corporate culture develops best when it is based on certain beliefs and is focused on a specific course.

2. Choose the Right Colleagues

Every hiring decision needs to consider whether the candidate would make a good addition to your team. Would this person be able to fit in and uphold the values you deem important for your company?

Oftentimes, employers tend to hire the same type of person, who either resembles them or another star employee. However, a successful environment is one that contains diversity, and hiring employees who have different strengths and points of view can help foster creativity and innovation, which will drive a positive culture.

3. Promote Transparency

A thriving company is one where every single employee feels valued and appreciated. The old world model of a hierarchy that keeps information locked at the top is outdated, and transparency is the new normal in the professional world.

A healthy company culture is one that democratizes decision making and gives everyone a voice. Instead of shielding your employees from sensitive news, involve them in the process and witness how much more invested they will become in the success of your company.

If you would like access to more articles about managing a business, or would like to inquire about getting a small business loan, contact IOU Financial.

 

3 Steps to Hiring the Correct People for the Job

Do you feel like your company is a revolving door of employees? Is it difficult to retain top talent, and you constantly spend your time recruiting new candidates? If that is the case, you need to refresh your skills in hiring the correct people for the job from the get-go.  

The truth is, a high employee turnover is bad for the morale of the remaining employees, the overall corporate culture and the productivity of your team. When employees are constantly leaving, and new members are joining the team, the rest of the staff has to pick up the slack, leaving them stressed out and overtired.

Plus, employee turnover is expensive for the business. A source estimates that it could take up to 6 to 9 months of a staff member’s salary to transition between employees. That means if an employee who’s making $50,000 annually does not work out for any reason, you can spend anywhere between $25,000 to $37,500 during the transition. If you want to avoid this, follow the steps below to hire the correct people for the job and improve employee loyalty.

1. Create a Detailed Job Description

Most positions nowadays are complex, and with the hectic pace of working life, individuals are often tasked with responsibilities outside of their direct roles. As such, it is imperative to create a detailed job description that truly captures the essence of the position.

Take the time to really analyze the person’s working day, what they need to do, how they should do it, and how much percentage of time they are expected to spend on each task. Think about what success in this position looks like, and reiterate that in the job description.

The more detailed you are from the get go, the more candidates it will eliminate, saving you time during the recruitment process when interviewing individuals.

2. Implement Skill Tests

You can find an applicant with an outstanding resume who says the right things during the interview process, but can you verify that they are as competent as they say they are? Yes, you can! That is easily doable by implementing skill tests prior to making a hiring decision.

Utilizing skill assessments will take out the bias and uncertainty from the screening process. Tests take out any inherent biases and provide a transparent strategy to choose the best candidate for the job. You will be able to see for yourself each candidate’s strengths and weaknesses and make an educated decision during the interview process.

3. Involve the Team in the Recruitment Process

Employees spend most of their day at the office, and personalities often clash, which causes a poor working environment. When there is unresolved conflict, tension and unhealthy competition, that is a major reason why your employees may not be lasting long in their positions.

In order to see if a potential candidate would make a good fit within your existing team, involve them in the recruitment process. When your search is narrowed down to the top few candidates, give each person some time to spend with your employees. Encourage them to talk and ask tough questions; they may find an issue that you have overlooked!

If you need cash to invest in a skills assessment test or want to hire an HR consultant to help you with the recruiting strategy, IOU Financial can help. Contact us today to learn more about our easy and affordable small business loans.

Better Manage Your Time: 13 Tips for Business Owners

As a business owner, you spend your time thinking, acting and communicating, punctuated by too many interruptions. Maybe you’ve taken a time management course without realizing any improvement. Here are 13 tips to help you get better control on how you spend your time:

  1. Track your time:

    Write down on a schedule what you do as you do it. Do it for a week, and find out how much of your time is spent on thinking, acting and communicating. It’s the first step into a larger world.

  2. Make appointments:

    An important activity or communication should be assigned a time. Try an appointment book, either the old-fashioned paper variety or an AI app with voice recognition. Then discipline yourself to keep your appointments without letting them run long.

  3. Direct your activities:

    Decide to spend at least half of your time engaged in communications, activities and thoughts. You’re more effective if you don’t waste time.

  4. Schedule time for interruptions:

    Set aside time every day to handle interruptions. You might set up special hours in which you are open to handling all the tasks that interrupt your work flow.

  5. Use the first half hour:

    When you first come into work, take the first half-hour to plan your day in detail, including when to handle interruptions.

  6. Know your desired outcomes:

    When you set aside time to perform a task or communicate with others, know beforehand what you want to achieve. By knowing what defines success, you can better achieve your goals and, if something is missing, identify what you aren’t doing right.

  7. Use automated note taker:

    Automated AI tools will transcribe, summarize and annotate meetings and phone calls so that you don’t have to. It’s a real time-saver and lets you better concentrate on what is being said.

  8. Buy a “Do Not Disturb” sign:

    Deploy it when you don’t want to be interrupted. A perfect accompaniment to a thinking cap.

  9. Postpone responses:

    Do you drop what you’re doing to respond to a phone call, email or text message? That’s not necessarily a good idea. Unless it’s an emergency, get back to people when it suits you, and schedule time for your replies.

  10. Block distractions:

    Social media sources might be vying for your attention, but unless you need these for your business, ignore them. They are interrupting your schedule and your train of thought. Some people don’t allow Facebook or Twitter on their business computers.

  11. Observe the 80/20 rule:

    Don’t feel bad that you can’t get everything done during the day. Remember that 20 percent of your activities, thoughts and communications will account for 80 percent of your results.

  12. Try the Pomodoro technique:

    Set a timer for 20 or 25 minutes when you start on a specific task. When time is up, take a 5-minute break before beginning your next task.

  13. Fill out your staff:

    If you’re an entrepreneur who’s accustomed to operating on a shoestring, consider hiring staff to take over some of your time-consuming tasks. If you’re short of working capital to enlarge your staff, consider a loan from IOU Financial. You can use it to get a bigger office, more desks and other items to support more employees. Remember, IOU Financial offers quick, affordable loans with an easy daily repayment process.

HR Trends for 2018

Human Resources is a vital department in any organization, working with both employers and employees to address concerns, implement standards and procedures and enforce an ethical working environment. The last few years have seen a major shift in the workplace. Millennials have entered the working world and are making demands for flexibility, decision-making power and a work/ life balance unprecedented to the previous generations. Coupled with technological advances, this has led to changes in 2017 and predicted certain HR trends for 2018. Stay up-to-date on the latest below!

Increased Attention on People Analytics

People analytics is a science that looks at various trends in a company, such as “measuring diversity, gender pay equity, skills gaps, labor utilization, retention rates, real-time feedback, and even organizational network analysis,” explains one source, which goes on to state that 69% of companies utilized this practice in 2017, compared to just 10-15% in previous years.

Needless to say, people analytics is reshaping the way Human Resources operates, and is bound to fully explode this year. This detailed information allows HR professionals to not have to guess about what employees need, but have a deep understanding of their needs, wants, concerns and so on.

This, in turn, allows HR managers to work with department heads to make appropriate changes and address employees’ issues in a timely and appropriate manner.

Wellness Apps

While the main goal of managers in the past has been managing output, nowadays, the focus is transferred away from the work and to the individual. With the understanding that employees must be emotionally and physically well in order to perform at their best levels, another key trend in the HR world is wellness apps. Seventy-eight percent of HR managers regarded employee wellness as a top concern, which means they are taking the steps to ensure that workers are monitored and empowered to take care of themselves.

Health and wellness apps measure individual performance,  activity and fitness levels, helps employees set goals, improve mental acuity with games and remind them to take breaks. This also helps companies save money from sick days and related expenses.

Changes in Recruitment Practices

In recent years, there has been a major shift in employment trends—while full time employees were always the norm, that is being phased out now. Instead, companies are increasingly hiring remote workers, those working on a flexible schedule, as well as part time employees and consultants. This type of strategy helps organizations save money on paying salaries and other benefits, and hiring employees on an as-needed basis.

These changes have transformed the way HR professionals recruit candidates. “Talent sourcing practices need to build speed and agility in order to quickly identify work/projects in need of attention, source employees with the required skills, and staff project teams that can quickly perform the necessary task,” a source explains.

These are just three of the changes the Human Resource industry is facing in 2018. HR managers need to be on the lookout for the latest trends, and adapt them quickly to keep their companies at the forefront of innovation. If your company requires financial assistance to incorporate a new technology or implement a new objective, consider applying for a small business loan. IOU Financial can help you secure up to $300,000 in 24-48 hours. Learn more here!

3 Ted Talks Small Business Owners Should Listen To

As a small business owner, would you appreciate the opportunity to get advice from accomplished and world-known leaders? Would you be especially interested if this advice was free and accessible from a computer, tablet or smartphone? If you answered yes to the two questions, you will love Ted Talks — videos from leadership experts that specialize in various industries.

Ted Talks originated in 1984 as a conference on Technology, Entertainment and Design, and has grown to a collection of  short videos (18 minutes or less) that are available in over 100 languages. The following three Ted Talks are particularly beneficial to small business owners as they can help them become better leaders:

How Great Leaders Inspire Action

This Ted Talk is hosted by Simon Sinek, a famous author, marketing consultant and motivational speaker. He is responsible for books such as Start With Why and Leaders Eat Last on the topics of inspirational leadership.

In this video, he tries to explore answers to how leaders can promote trust and cooperation and encourage and accept change in organizations. He utilizes real world examples that don’t only focus on the world of business, bringing to light successes from people such as Martin Luther King, Jr. and brands such as Apple. Sinek focuses on similarities between inspiring leaders in how they act and think, and shares them with his listeners.

The video has gotten over 34 million views, and is the third most successful Ted Talk of all time!

Why It’s Time to Forget the Pecking Order at Work

While many of the inspirational leadership Ted Talks are hosted by authors or motivational speakers, this video is hosted by someone who has actually walked the walk! Margaret Heffernan was the CEO in five businesses. Her experience is diverse – she worked as a television producer, headed IPPA, a trade organization that represents independent film and television producers in England, worked on public affair campaigns, ran Internet businesses and wrote a book.

Heffernan shares what she learned throughout this time, which is that company leaders should nix the “the superchicken model” that only values the highest-performing employees, and instead focus on cohesion and the empowerment of every single member of the team to truly create change and success within the organization.

Learning From Leadership’s Missing Manual

What do the leader of the Ashaninka Nation, a leader of an NGO from Bangalore and a Chinese businessman have in common? They all provide inspiration for motivational leadership skills to the presenter of this Ted Talk, Fields Wicker-Miurin.

This social entrepreneur looks for leaders in unique situations and places, and shares what knowledge she was able to get from their stories. She is a director of Savills, an international property advisory company and CDC group, a UK development finance institution, as well as the co-founder of Leader’s Quest, an organization that connects leaders and encourages them to not only analyze their positions and roles, but to seek inspiration from leaders around the world.

In this Ted Talks, Wicker-Miurin provides examples of non-traditional leaders in order to help business owners consider their own leadership roles and how they can help their teams in a better and more productive way.

IOU Financial is committed to helping small business owners become the best leaders they can be! If you want to attend leadership conferences or take business classes, we can help you finance that goal with a small business loan in under 48 hours! Contact us to learn more.

 

When Should I Hire a Virtual Assistant For My Small Business?

Your business is growing and that once small start up has turned into a solid, reputable, and stable small business. While you grow your business, you may also find yourself considering the idea of hiring a virtual assistant: someone to tackle the day-to-day scheduling of work tasks or business meetings, and handling administrative duties to help you take your business to the next level.  You may even ask yourself where, when, or how to go about hiring a virtual assistant. In this post we will tackle the 4 key factors to consider when you’re considering bringing on a virtual assistant. Let’s jump in!

You’re ready to hire a virtual assistant:

When you lose track of keeping track

One of the simplest yet most important factors to consider when hiring a virtual assistant is knowing the right timing. If you find it hard to stay on top of simple day-to-day tasks, and you find your attention is being pulled away from the important roles you have, it may be time to bring an assistant on board. When your systems such as Evernote, Slack, Trello Boards and beyond start becoming overwhelming to keep organized by yourself, an assistant may be the solution. When you see it’s hard to keep track of things, don’t lose track anymore-bring on an assistant. 

When you have the business down to a science

When your business starts becoming a well-oiled machine and the products, services, and business model you run can be set to “cruise control,” you may be able to bring on an assistant. Your business is now solid, so bringing on an assistant may free up some of your mental energy and allow you to tackle the next steps for growth. Think about building a house: If your foundation is solid and in place, you can start tackling the framing of the walls. Allow an assistant to keep things running while you move on to framing up your next big project.

When finances make sense

Before you dive into hiring an assistant, be sure to consider the cost to do so. Virtual assistants are not minimum wage jobs, they can be costly if you’re hiring top talent. Make sure your business can justify and support an assistant. The intention is to bring in more business by hiring an assistant, so ensure the financial pros/cons are considered. You may not be able to pay a full year salary today, but can you justify the initial cost by allowing it to add revenue elsewhere?

When it feels right

There is something to be said for “trusting your gut” when you run a small business. It was that very gut that lead you to start the business in the first place right? Do not leave out the internal thought process for bringing on an assistant. Ask yourself if it feels like the right time, seems like the moment to enter that phase, and do “the cards just fall in place” leading to the perfect fit for your company? If your gut is saying go for it, then it should be worth the thought.

By now you have considered hiring a virtual assistant for your company and ruling out the various pros/cons for when and if that moment is right. Hiring a virtual assistant can be a vital asset to any small business, however the timing, need, and role in your company all need to be considered. By reflecting on the top 4 factors when hiring a virtual assistant, one can better prepare themselves for striking at the right place and the right time.

Need a little extra working capital to hire a virtual assistant?  IOU Financial is here to fuel the growth of small business. We can provide a small business loan of up to $150,000 in as little as 48 hours. Contact us today!

Best Apps to Use to Better Manage Your Business Finances

Whatever small business you run, there is a core set of financial and related functions that just about every business must perform. In 2017, that means choosing apps that meet your requirements and are easy to use on your computer and smartphone without breaking the bank. Here are some of the top apps that fit the bill:

1. QuickBooks:

From tiny to midsize, your company needs a program like Quicken to manage its books and records. This is an easy to use accounting package with cash management capabilities. You can manage invoices, expenditures and revenue, generate financial statements, pay bills and salaries, and track your bank/credit card accounts. QuickBooks works with Square and PayPal, and lets you mark the tax status of transaction to facilitate. It’s a snap to set up recurring payment notifications, as is autopay and financial reminders, that automatically update your bank account balances. You can also set up alerts if your bank account is running low. Runners up: Wave and FreshBooks.

2. TurboTax:

From the makers of QuickBooks, TurboTax is an electronic tax preparer at an insanely low price compared to hiring a bookkeeper or tax accountant. Filing taxes couldn’t be simpler, even if you have complex transactions. When teamed up with QuickBooks, your company’s tax returns basically generate themselves. Runners up: Tax Act, H&R Block, TaxSlayer.

3. PayPal:

The granddaddy of payment systems, PayPal links to your credit cards, debit cards and bank accounts to move money around and make payments hassle-free. You can use PayPal in conjunction with a card-reading device to create a portable point-of-sales terminal for online checkout. PayPal charges 2.7 percent per card read (swipe or insert), 2.9 percent plus $0.30 for online invoicing and payments, and 3.5 percent plus $0.15 for sales entered manually. You can get standard merchant services for free, but the professional plan, at $30/month, adds features and flexibility.

4. Square:

A great alternative or adjunct to PayPal, Square is a convenient mobile card reading device and payment service that is a favorite among street vendors, food trucks, and farmers’ markets. It works just as well at your retail shop or beauty salon. Simply attach the Square reader to your phone or tablet and you have your own point-of-sale terminal. Square charges 2.75 percent for each card read. For a one-time charge of $49, you can add contactless collections via mobile wallets (like Apple Pay and Google Pay). The cost for a manually entered transaction is 3.5 percent plus $0.15. The app is free.

5. Skype:

You don’t need fancy equipment to have a video conversation or conference with Skype. You can also share files and text messages conveniently. Skype helps with your finances by allowing you to hold meetings with anyone, anywhere, without having to spend money on travel or fancy conference rooms. You can get basic Skype for free or spend as little $5/month for Skype for Business, and you can integrate Skype to run Microsoft Office for word processing, spreadsheet generation, and slick presentations. Runners up: Pushover for message distribution; Slack for instant messaging; Fuze for videoconferencing; and Addappt for remote control of calendars and address books.

6. Tripit:

If you are a businessperson on the go, Tripit lets you consolidate your travel plans into a single itinerary accessible from any device. All you have to do is forward your travel-related emails to Tripit and it takes care of the rest. Who needs a travel department anyway? Alternative: Expensify lets you track your business travel expenses and place them on your expense report. You can also photograph your receipts and let Expensify extract the expenses automagically. It costs $9 a month for each corporate user.

7. MailChimp:

Control you email advertising campaigns with MailChimp in a very cost-effective way. You can create mailing lists, newsletters, response emails and reports that track how recipients react to your emails. These reports can help you craft more effective email strategies and improve marketing performance while saving a lot of money.

Performance Reviews: Are You Making These Mistakes?

Yearly reviews are commonplace in many organizations, but they are often dreaded by both the reviewers and the employees being reviewed. Managers feel uncomfortable giving out negative feedback, while those reporting to them stress while anticipating the feedback.

The main problem of annual reviews, aside from their negative connotation, is that they are largely ineffective. A study found that job appraisals negatively affected job performance more than one third of the time. As a result, many companies around the world, such as Microsoft and Gap, are phasing out traditional annual reviews altogether. However, performance reviews can be effective if the leaders correct mistakes they are making in this process! Read on to find out if you are making common mistakes during the evaluation meetings with your staff and how you can ensure yours is successful.

Not Timely

Another problem with the annual review is that it’s only given once a year. That is not nearly enough time for managers to be able to provide productive feedback and work together with their employees to make relevant changes.

When you sit down with a staff member in December and mention something that occurred in May, the individual may have no recollection of the incident. Therefore, leaders have to provide timely feedback instead of waiting a year to bring something up.

The most beneficial feedback is immediate, or at least timely, brought up within a few days of the occurrence; otherwise, it is just pointless. While a formal meeting to discuss the yearly performance may be helpful when discussing promotions or raises, feedback should be regularly provided during the course of the workweek.

Focusing on the Negative

Bosses often misunderstand the main point of the performance review, which is to help employees work more productively and efficiently. Instead, they consider this a time to air their grievances and dissatisfaction with the team member. Even if the individual is performing up to the standards most of the time, if the supervisor focuses solely on what needs to improve during the review, it may negatively impact the loyalty and job satisfaction of the person.

Even if you have an employee who is underperforming in many areas, it is helpful to first bring up something positive about their efforts before concentrating on the negative. Consider the small things that the person may be getting right, like the fact that they are always pleasant, to bring up before moving on to what they may need to improve.

Not Setting Benchmarks

The feedback given out during a performance review will likely not amount to anything unless measurable and realistic benchmarks are set and agreed upon by both the employer and the employee. It’s not enough to tell a subordinate that they need to work faster; to help them become more productive, set small goals that the individual can work towards.

For example, if you need a staff member to work faster, instead of telling them to do so, you should count how many tasks the person currently accomplishes in one week, and increase that by 5 percent per month to see if they can ultimately speed up by 15 percent. It’s important for managers to be involved in this process, observing current behaviors, setting goals and then measuring the employee performance to see if they are meeting those goals.

The reason performance reviews get a bad rap is because many managers are not doing them properly. Sitting down to provide feedback only once a year, focusing on the negative and not setting benchmarks makes the process ineffective; however, making small changes can positively impact both the person and your company.

 

Low Corporate Morale? Five Ways to Boost Employee Engagement

Working in today’s world is not easy – the hours are getting longer, the responsibilities more intense and the push to cut costs are brutal. Many business owners find that they have more to do to stay afloat with less resources to hire staff, so all employees end up doing more with less – less time, less money and less help.

Overworked and tired employees develop low corporate morale as they stop looking forward to coming to work every morning, and feel tired and stressed out. This leads to high employee turnover, decreased productivity and an unhappy workplace.

On the other hand, engaged employees are better for business – a source states that businesses where the staff members are truly engaged “have 6% higher net profit margins,” according to Towers Perrin research and “five times higher shareholder returns over five years,” according to Kenexa research. It is up to the business owner to find ways to boost employee engagement, which will create a better corporate culture and better overall morale.

What is Employee Engagement?

An employee who is truly engaged is invested into the success of the company in which they work. They don’t just come in to receive a paycheck, but care about the company’s goals and interests. This type of team member uses discretionary effort, meaning they do things to help the company without having to be asked or required to do so. This can involve staying late or coming in on a weekend, mentoring a new staffer, or addressing a safety concern.

How do You Promote Employee Engagement?

In order to “turn that frown upside down,” use the following tips to improve corporate morale to increase employee engagement:

Reward Your Staff’s Efforts

When small business owners hear the term “reward,” they tend to think of financial rewards; however, rewards don’t have to cost anything! Simply showing your staff that you recognize their hard work and are grateful for their efforts is often more than enough to get them to take ownership of their responsibilities and become more engaged.

Oftentimes, simply saying, “I see you are working hard, and I appreciate it,” will do the trick. However, it can also be advantageous to recognize certain team members publicly during a staff meeting or to create an employee of the month award so that the whole office is aware of someone’s achievement. 


Other ways to reward staff without spending a dime are to let them go home earlier after a long week, give them a day off after a busy season that required continuous overtime or to host a potluck to celebrate a big company win!

Support a Cause

It’s important to remember that companies are made up of people, and that many of them are motivated by social causes. A great way to boost engagement is to survey your employees about causes important to them – be that the environment, local boys and girls clubs or third world countries. After calculating the responses, pick a social cause that you can support as a company.

You can either dedicate a percentage of your profits to the cause, or help bring awareness to it through marketing and social media campaigns. To take it a step further and truly unite your team members to strive for a common goal, dedicate a day to go out and make a difference together. Volunteer at a local homeless shelter or build houses for Houses of Humanity to help those that are less fortunate.

The best way to boost morale and create employee engagement is to take the time to get to know your staff, form relationships with them, and make them feel appreciated!