Keeping people motivated--without raises.

• Author: Heffes, Ellen M.
• Position: MANAGEMENT - Brief article

With the dismal economy, many people are likely expecting small raises--if any--this year. Some employees will be happy to just keep their jobs, recognizing that most companies likely have little or no budget to cover raises for even key staff.

Assuming cuts, as appropriate, have been made or not even considered, a few simple measures suggested by Sibson Consulting, a division of The Segal Co., can go a long way toward building good will among staff for working through the downturn:

* Communicate. Morale can suffer greatly as employees speculate about the state of the company and their own future. Tell them the truth about the firm's status and its short- and long-term plans. Honesty is the best policy here.

* Share the Pain. If staff doesn't receive raises, neither should senior management. In addition, telling employees that everyone is in the same boat will help build support and derail and potential feelings of inequality.

* Emphasize the Intangibles. Now is a good time to promote the noncash rewards that can be provided for employees, such as benefits and training.

*...