Here are five alternatives to a pay raise:
Increase the number of paid days off.
Go to a four day work week twice monthly.
Telecommute one day a week (this saves the employee travel time and gas expense).
Establish a bonus for high performance during the year; if an employee exceeds billable hours, or productivity standards – your business will improve.
Initiate a 401(k) or other savings incentive plan (the incremental costs are very small compared to the perceived benefit)
Remember, it costs far more to replace an employee than keeping one. Reducing your employee turnover is a key component to business success.
Courtesy USA Today.