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John Wilcox is senior editor of 15 HR Specialist newsletters covering employment law, compensation and benefits, as well as theHRSpecialist.com. A journalist who has covered HR, training, organization development and business management for more than 15 years, John keeps his finger on the pulse of what’s working in HR through daily contact with some of the nation’s top HR pros, business people and employment law attorneys.

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We are also a small company with the same issues. If you can't increase salary have you looked at increased PTO or vacation time / sick time. In our company we have even provided extra toward their medical/dental insurance if you have it. January this year we increase the 401k percentage. These would be areas if you have these benefits to encourage and motivate.
Posted by: John Angle | June 19, 2007 at 02:09 PM
We're already doing everything Mr. Angle recommends and more: We pay 100% of employee AND family medical coverage. Every five years we increase PTO by 1/2 hour per biweek worked (earn as you go system), and employees get a new display plaque at significant anniversaries (5, 10, 20, 25, 30), plus a luncheon and gift. I'm really topping out here; I'll earn my 30 year plaque in October!
Posted by: R, Fairfax | June 20, 2007 at 05:42 AM
Forgot to mention we also have a generous 401(k) match - dollar for dollar up to 6% of deferred wages.
Posted by: R, Fairfax | June 20, 2007 at 05:44 AM
Just found this gem of advice elsewhere on the HR Weekly site: "Survey employees about what benefits they'd like to have. Some may cost little or no money. Then talk with your execs about introducing new no-cost voluntary benefits...."
Posted by: R, Fairfax | June 20, 2007 at 05:51 AM
We cannot give more in salary or bonuses, so we give them time. We use time off as rewards for various things. It does not cost us anything, and these days people appreciate time off almost as much as they appreciate more money.
Posted by: Mark | June 21, 2007 at 03:26 PM