Over the weekend I read a few articles about Bluescope Steel move regarding their plan to cut 1000 jobs. What grabbed my attention was the number of companies seizing the opportunity to source talent and offering different plans for the Illawarra workers.

According to the Illawarra Mercury, Bluescope plans to open a job centre to help workers find work elsewhere and more than 20 companies such as Rio Tinto, Joy Mining, Becker, Rheem and BHP Billiton have registered with hundreds of job vacancies.

Great outlet to assist these companies with the national skills shortage they face, so the bids to attract employees have commenced. Companies have to look at their offers if they want to attract this group of highly skilled employees who have also been classed among the safest workers in the country.

In my view, considerations to ensure these skilled workers choose the right company to work for should take into account not only commissions, bonuses and compensation but also non-cash incentives to attract and retain the new talent they are about to hire.

On the one hand, compensation packages allow employees to live – buy a house, pay the bills, maintain life, manage chores, go on a holiday, etc. That’s what a salary does and these employees will look at these facts with a transactional and functional approach. They will do some calculations when they evaluate a compensation system and compare the money to the work and their needs. No emotions involved, it’s cold, hard, transactional and impersonal. They will value your offer and match it to how much is worth to them.

Employees will face decisions and weigh up opportunities. They may have to move interstate, be away from their families for a period, reassess and look into their mortgages, retirement and other issues that need their attention. In this turmoil, neither companies nor employees should see this as a life rope being thrown to rescue their unemployment situation. Employees are skilled, savvy and confident. They know the mining industry will be after their talent and their decision to choose a company to work for won’t be done in a faint hearted manner.

The bigger question for the Employers is how to attract and keep skilled workers?

Whilst employees will work out the maths and see how the salary offers stack up against new employment opportunities, there are other factors and benefits that they will also be weighing up and mining companies must consider these when putting together their strategies. For an employee there is much more than just a salary when choosing an organisation to work for. They will also look at the emotional, non-transactional connections they can have with a new employer. They will look at factors beyond money – motives that address more than their basic salary needs but rather consider their individual and family goals and personal life matters. Mining companies need to find ways to drive their attractiveness with non-cash incentives, rewards, recognition and community programs that create an emotional, social relationship with potential employees and their families.

It’s hard to do the maths in your head to measure what a reward and recognition program is worth in monetary terms. Measuring how valuable perks are is difficult. For example, how much is it worth to have access to negotiated discounts on a wide range of products simply by being an employee of a company? What’s the worth of attending a company’s employee recognition ‘event’ every year? What is the true worth of an all-expenses-paid weekend-away for you and your partner, for simply changing a behaviour that improved safety? How would company A, that doesn’t offer a recognition program, stack up against company B that offers a program that rewards it’s employees for their loyalty, engagement and achievements? How about rewards for completing training? – The cost of any recognition program is cheaper when you compare it to the true cost that lack of skills, poor retention or low employee loyalty/engagement create for these companies.

Companies across the board mining or not should not confuse compensation with connection as these programs add value, create a sense of community and deeply connect with employees’ behaviour and emotions.

It would be narrow minded to think a salary package alone will entice skilled employees to choose a company. The truth is there are many different motives that will influence the Illawarra workers when they choose their next employer and the fact is they will be looking at the total package not just the salary.

Todays businesses are facing a real skills shortage and it seems business owners are throwing more money at them to keep them at work. Many business owners think employees decide to leave because they’ve been offered more money next door. However, the reason for leaving for most employees is that the working conditions are not right for them.

Managers have to be very clear as to what keeps an employee engaged at work and many think that employees are after more money in order to continue performing. Whilst money is their lifeline, hence a key driver of engagement, employees leave work for many other reasons.

Leadership, purpose, reward, opportunity, relationships, job fulfilment and work-life balance are above money. Managers should not assume that money motivates their employees. Everyone’s motivated by different drivers and when talking to your staff you will realise money is at the bottom end of why they work or why they want to leave your company.

Employee satisfaction is an important strategic initiative that ensures staff is motivated and engaged. And in this mix it is crucial to keep perspective of how each element operates.

Two key elements that I often find keep employees focused and engaged are leadership and reward. Leadership has proven to be a key factor in successful organisations. It fosters an environment of purpose, accomplishment and satisfaction through the aid and support of others in the accomplishment of a common task. In this case you can read: achieving your business objectives.

On the other hand, rewards. They are satisfying, gratifying and offer value to the individual’s sense of accomplishment. So I would say that a good combination of leadership and rewards give businesses an edge where both parties win, managers maximise engagement and employees continue thriving at their workplace.

With budgets being cut, and squeezed from every possible angle for all business types, there is a lot of advise on the web as to clever and sensible ways to approach  new consumer promotions and incentive programs.

For really simple, clearly defined advise on consumer promotions and incentives, Kochie’s Business Builders website has some great advise. Such as:

The key elements are as follows:

•  Set specific objectives
•  Develop a clear plan, covering how you will meet your objectives
•  Ensure the incentive is appealing to your target market
•  Ensure the incentive provides synergy with your brand
•  Implementation
•  Review

Click here to view the full article >>

I believe vouchers are a great way to reward customers for their loyalty and employees for their achievements. They are easy to manage and you can find them virtually anywhere. You can buy them from convenience stores, supermarkets, petrol stations or order them online, and most retailers have their own vouchers available.

However, be careful when you chose a voucher as some vouchers are good, some are bad and some could be a nightmare for you to manage and the recipient to use.Good vouchers are flexible, easy to use and offer great choice.

Vouchers that are generally well received are those that can be redeemed at various locations and retailers, and can be used to purchase a wide variety of products.Take Coles Myer gift cards for instance. They can be used at Myer, Target, Coles supermarkets, K-Mart, 1st Choice, Liquorland, Vintage Cellars and/or Office Works. This voucher offers variety and therefore makes it appealing to a wide demographic.  I am not promoting this gift card but I think it’s a pretty good choice on offer.

Conversely bad vouchers are those that offer limited or no choice and can only be redeemed at specific store locations. As well, some vouchers can only be used by the person who’s name the voucher was issued under. Whilst I understand there may be security issues with certain vouchers, especially travel, they can be difficult to manage if the recipient of the voucher isn’t fully aware of the terms and conditions.

And last but not least we have the ugly vouchers. Those that not only have limited choice or few supplier and/or reward options but also have a limited timeframe to be used. They may also involve a one-transaction rule whereby allowing the individual to use the credit in one transaction only or the balance forfeited. No one likes receiving them, they are a hurdle for both parties and your reward could potentially be perceived negatively.

It’s important to have an understanding of who the recipient of the voucher is so you can chose the voucher accordingly. Ensure the brand and the products offered by the supplier are relevant and enticing for the recipient.

I suggest you carefully read the terms and conditions of the voucher before you make your selection. If your reward is nationwide ensure the voucher can be used in metro and rural areas. It would be an added bonus if the vouchers could be used to redeem purchases online.  Just make sure delivery of items is timely. Play it safe by using well-known brands, retailers that have an extensive network and choose a voucher that is relevant to the person you give it to.