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Although many people think that money is the only incentive that motivates workers, this is far from the truth. There are numerous other factors that contribute to employees’ happiness at the workplace. The following tips can help make employees happy without needing to give them a pay raise.


How to Keep Your Employees Happy Without a Pay Raise

Ensure Their Voices are Heard

Employees tend to feel appreciated when they are given a chance to air their opinions and get heard. After all, you hired them for certain positions because they were qualified. Although you cannot implement every employee’s ideas, it is important to ask for their opinion as they can point out an overlooked solution. Giving your employees the space to voice their opinions will help them become more creative and in the process, improve their skills.

Performance Bonus

This does not necessarily have to be of monetary value. You can reward your best performing employees with things like travel packages, or other perks. Shopping vouchers are also a great bonus. If you like, you can also offer them monetary bonuses on top of their salaries.

Work-Life Balance

This is the best mechanism to keep your employees happy, especially if there are complaints regarding the lack of pay rises. Although some of the items that offer a work-life balance require money, there are alternatives that don’t have to cost you a thing. These include offering your employees flexible working hours and giving them a day off when they have family obligations and events.


Keep communication channels open to all your employees regardless of how high your position is. This shows them that they have a say in the firm’s affairs, which adds a human element to it. Giving your employees the feeling of access to the highest authority makes them feel valued since they know their woes will always be listened to. If you are worried about being bombarded with lots of calls and emails, you will be surprised to learn that few employees actually use the option.

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Free Training and Courses

A workplace is not only meant for earning a living but it’s also a learning environment. Employees tend to learn many things involved with work life, including time management and teamwork. On top of these, as an employer, you can plan for your employees to get free learning courses and training programs in order to improve their skills.

Such skills will elevate your company’s standards and also lure more employees into taking advantage of the free courses, which are usually very costly to an individual.

Make Gratitude Part of Your Culture

Showing gratitude is a sure way to keep your employees feeling happy, encouraged and satisfied with what they do. A simple thank you will not only make your employee smile but also encourage them to work even harder the next time.

Although you might not be in a position to increase their salaries, it will cost you nothing to appreciate and show gratitude towards their efforts. Making gratitude a part of your culture will keep your employees happy, more engaged and less likely to jump ships. However, ensure you always show gratitude in a timely manner and don’t play favorites.

Offer More Holiday Time

Though a pay rise might be unfeasible, adding a few more days to the holiday period for your top employees might be. Even a slight extension in holidays may prove very appealing. Just remember that you don’t have to do this for every employee; it should be an incentive for the top performers.

Treat them like People, Not Resources

Employees are not like resources that can be arranged in a particular way or treated the same way. Although it is paramount to ensure your employees fulfil their duties, it is equally important to develop a relationship with them to ensure they feel valued.

Humans have emotional, psychological and emotional needs. Things like fun events and dinners can serve the purpose of making them feel appreciated. Little gestures like a get-well-soon card for an ill employee or flowers on special occasions could work wonders.
The above tips will ensure that your employees remain happy and their productivity is bound to increase.

Author: Sarah Kearns is a hard working mother of three daughters. She is a Senior Communications Manager for BizDb, an online resource with information about businesses in the UK. She loves cooking, reading history books and writing about green living.

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