Even before the COVID-19 pandemic, the employment landscape was evolving.

Many workers now value non-monetary benefits such as flexibility and a healthy workplace over the traditional monetary-based incentives that previously reigned supreme.

This does not mean that financial benefits are irrelevant, but it does suggest that a balanced combination of both will best inspire and reward employees.

Flexible working arrangements

The right to request flexible working arrangements has become enshrined in the National Employment Standards such that under certain circumstances an employee can request to make changes to the way they perform work.

Tailoring an employee’s working arrangements to their specific circumstances can be a substantial benefit, particularly when new parents return to the workplace and need to juggle work with caring responsibilities.

Flexible working arrangements can also be used to stagger start and finish times to avoid rush hour commutes or in the event that an employee has health issues and needs to rearrange their hours to focus on their health.

However, even without this entitlement, employers should consider any requests an employee makes to improve their work-life balance.

Wellbeing days

This is an initiative that is slowly gaining traction in the wake of the COVID-19 pandemic, reflecting greater recognition of the need to promote better mental health at work.

An employer may consider offering, say, two days a year as ‘wellbeing days’.

These are days that can be taken off without providing any prior notice or justification and are not taken out of other existing leave entitlements (such as annual leave or personal or carer’s leave).

Providing wellbeing days can be an attractive benefit that differentiates a business from its competition and demonstrates that it treats its employees with respect, acknowledging that some days are more difficult than others.

Strong organisational culture

This is a must-have for any small business looking to retain its best people.

To foster a strong and healthy workplace culture, management and senior staff need to lead by example to ensure that all employees not only engage in appropriate and beneficial conduct, but also feel valued at work.

To create a health and wellbeing culture that will aid in retaining talent, employers could:

• initiate staff social functions (such as after-work drinks or dinners)


• provide fitness incentives (for example, by subsidising gym memberships or affording extra flexibility around breaks so staff can exercise during their lunch hours)


• encourage a mentally healthy workplace (with a zero-tolerance policy towards bullying and harassment, for example, and by talking openly about mental health)


• encourage employees to take annual leave often to maintain a proper rest from work and to take sick leave when ill to minimise the spread of contagious illnesses (such as COVID-19) throughout the workplace.

Opportunities for career progression

The modern employee is ambitious and rarely settles for the status quo.

It is therefore the responsibility of the employer to create an environment in which workers are afforded every chance to grow and develop their skills and competencies.

This could include greater on-the-job training and support, more challenging work assignments, funding of external study or training and the chance to attend workshops relevant to employees’ work.

Internal hiring should also be considered when filling new positions.

It makes employees feel valued while also informing the entire workplace that you are willing to reward their hard work with upward career progression.

Traditional financial incentives

Monetary incentives still very much have their place.

Two of the most common financial incentives are paying a higher salary or hourly rate and bonuses.

Correlating financial bonuses with strong performance objectives can have a hugely beneficial impact on employee engagement and morale as well as the business’s bottom line.

Performance metrics to calculate bonuses should always be measured objectively and fairly.

Financial rewards that are not based on clear criteria can be flawed and subject to bias, which can have a negative impact on employee morale in the workplace.

Taking a comprehensive approach

Before anything else, employers need to understand what makes their employees tick; no two individuals are the same.

While some will prefer the competitive nature of performance-based financial bonuses, others prefer to operate in an environment in which non-monetary benefits are more prevalent.

Getting to know each employee and their motivations should be paramount when determining the most effective method of rewarding and retaining staff.

It could be the case that both financial and non-financial incentives are introduced together to create a more holistic system of reward that considers the needs and wants of each individual employee for a vibrant, healthy and productive team.

The HR in Practice specialist workplace relations and work (occupational) health and safety advisory service is operated by Wentworth Advantage. APA Business Group Premium Principal members can contact the HR in Practice service on 1300 138 954 or hrinpractice@australian.physio or click here to access the full suite of online resources, including those dedicated to wellbeing. For more information about joining the APA Business Group, click here, email info@australian.physio or call 1300 306 622.