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)
Courtesy USA Today.