This question contains several parts; be sure to answer all of them. First, describe three nonmonetary ways of compensating and retaining employees. Second, imagine that you manage a small appliance store where salespeople are paid an hourly wage with no bonus or additional compensation. Recently, a big-box store has been luring away your best people by offering them not only a higher hourly wage, but also pay for performance (based on their sales). List and explain at least three ways to improve your employee retention.

Question

What will be an ideal response?

Answer 1

Some employees will leave because they feel the need for work-life balance, the need to expand their skills, the need for a positive work environment, and the need to matter or find meaning in their work. To retain such employees, nonmonetary incentives include work-life benefits (employer-sponsored programs or initiatives designed to help all employees balance work life with home life), flex-time, vacations and sabbaticals, learning opportunities (such as training or tuition reimbursement), and efforts to promote a positive work environment and meaningfulness.