Beyond the Bonus: Kickstart Retention on a Shoestring Budget

Looking for ways to compensate and reward your employees but you’re running a tight budget?

I recently read the interview with Kickstarter’s CEO Everette Taylor on the growth he’s helped oversee and the implementation of Kickstarter’s remote work and 4-day workweek culture. It got me thinking about some research I’ve read about the emerging trend of 4-day workweeks, and the fall of remote work’s prevalence in many workplaces.

I know you’re probably thinking “great, another article about remote work or reducing hours.” Well, not exactly.

What catches my eye about success stories like these is leaders looking for ways to support, engage, and reward their employees in ways beyond typical compensation. And, how that translates to employee, and ultimately business, performance.

In Kickstarter’s case (full disclosure, my information is coming only from this article), the drive seemed to come from the fact that, post-pandemic, some of their most valued employees were not living local to their headquarters. Taylor essentially made the decision as a perk to his best employees, and raised the performance bar for the rest of his organization.

When thinking about compensating or rewarding employees, many companies still look at things strictly in a financial sense. The truth is, most employees, once making enough to cover their primary expenses and have a little money left over, find great value in smaller acts of reward and recognition. If you’re on a tight budget, finding creative solutions that employees value can drive retention, and keep your best workers to help drive your growth.

These could be, much like remote work or a 4-day work week, flexibility in time worked. Other benefits to consider would be early exits on Fridays, allowing employees to log off at 2pm as long as weekly goals or deliverables are complete. A variation I’ve seen teams do are Focus Days: one day of the week, say Wednesday, gets blocked out all day so no internal meetings happen, with employees expected to do deep work. Compressed workweeks (40 hours over 4 work days, though I like the 80 hours over 9 work days set up, so every other Friday is off), Mental health days (1-2 days per quarter, separate from sick days), or Volunteer days (a day off to do an act of good for the community), are all examples of flexibility you can provide to your employees as a reward, at no financial cost to your team.

If you’re willing to spend a little bit, but can’t spend it on raises, there are still low-cost options worth considering. Professional development opportunities like a small learning stipend (think a Coursera class or a year of Linkedin Learning instead of a major conference),  mentorship circles where individuals connect with senior leaders over coffee (and the company covers the coffee),  or subscriptions to apps like Headspace are all in most firms’ budgets, even during tight financial times, and can make a big difference in employee engagement.

Even when on a tight budget, you can find ways to reward and compensate your employees. Doing so can mean the difference between finding replacements and watching your team and company grow.

I’ll probably dive deeper into some examples in a future post, but broadly speaking, these small gestures return far more on your investments. The latest research suggests the average cost of turnover in the US is over $45,000 per employee, after factoring in recruiting, onboarding, training, lost productivity, and management time. Retention initiatives such as mentoring and development support, flexible work, and recognition programs show a 4.2 ROI, and can lift retention by 87%.

Employees who feel seen through recognition, development, and flexibility are 18% more productive. Including wellness initiatives can reduce absenteeism and lead to healthier employees. The improved engagement and increased productivity leads to, according to Gallup, 23% increased profitability.

Not every one of these options is the right fit for your company, and there are many more that might work, based on your company culture, the workplace, and your goals. Are you looking for ways to motivate and retain your employees, but are worried about what this means for your budget? Work with Sound Talent Strategies to discover ways you can better reward strong performance, even on a tight budget. Let’s work together to help your business grow!