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

This does not mean that financial benefits are irrelevant; rather, it emphasises the importance of employers adopting a nuanced approach. 

Achieving an optimal balance between both types of incentives is crucial to fostering and sustaining a motivated, committed and healthy team.

Flexible working arrangements

The right to request flexible working arrangements is enshrined in the National Employment Standards. 

Under certain circumstances, an employee can ask to make changes to the way they perform work.

Customising an employee’s work arrangements to suit their individual circumstances can be a significant advantage, especially when new parents are rejoining the workforce and must balance work commitments with caregiving 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 is experiencing health issues and needs to rearrange their hours to focus on their health.

Even in the absence of this entitlement, employers should remain open to considering requests from employees aimed at enhancing their work-life balance.

Wellbeing days

This initiative has gradually gained traction, propelled by a growing awareness and acknowledgement of the importance of mental health in the workplace. 

Employers might contemplate providing, for instance, two days annually designated as ‘wellbeing days’. 

These days can be taken without the need for prior notice or justification and do not deduct from other existing leave entitlements such as annual leave or personal/carer’s leave.

Offering wellbeing days can serve as an appealing benefit that distinguishes a business from its competition and demonstrates a respectful approach to employees, recognising that certain days may pose greater challenges than others.

Strong organisational culture

This is a must-have for any small business looking to retain their 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 implement a health and wellbeing culture that will aid in retaining talent, employers could:
•    organise staff social functions (such as after-work drinks and dinners)
•    provide fitness incentives (eg, subsidise gym memberships or afford extra flexibility around breaks so staff can exercise during their lunch hour)
•    encourage a mentally healthy workplace (eg, through a zero tolerance policy on bullying and harassment or through talking openly about mental health)
•    encourage employees to take annual leave often to maintain a proper rest from work and to take personal (sick) leave when ill to minimise the spread of contagious illnesses 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 and training or offering employees the chance to attend workshops relevant to their work.

Internal hiring should also be a key consideration when filling new positions. 

This not only makes employees feel valued but also communicates to the entire workplace that the organisation is committed to recognising and rewarding their hard work through opportunities for upward career progression.

Traditional financial incentives

Monetary/financial incentives still very much have their place. Two of the most common financial incentives are paying a higher salary/ 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 on the business’s bottom line.

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

Financial rewards devoid of clear criteria can be flawed and susceptible to bias, potentially undermining employee morale in the workplace.

In summary

Before anything else, employers should prioritise understanding individual employee motivations before implementing any reward system. 

While some may favour performance-based financial bonuses, others may prefer non-monetary benefits. 

Tailoring rewards to individual preferences and considering a combination of financial and non-financial incentives creates a holistic system that fosters a vibrant and productive team, which helps not only to attract talent, but to retain it as well.

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