Couldn't Give Employees Raises for 2023? 3 Other Ways to Show Your Staff Your Appreciation

There are ways to say thank you aside from just money.

If your small business got hammered by inflation in 2022, you were no doubt in good company. In fact, even major corporations have felt the burn of inflation over the past 12 months. But while larger companies may have different options for absorbing higher operating costs, your options may be limited. 

If money has gotten tight for your business, then you may not be in a position to raise workers' pay in 2023. And that's something that may not be sitting well with them -- since, after all, they, too, are looking at higher costs just to function.

But failing to provide raises could be a problem for several reasons. First, if you care about your employees, you don't want them feeling bad about an absent raise. But also, when workers feel undervalued, they tend to not push themselves as hard. And so you may find that some of your employees are less motivated than usual these days, and that some may be looking to jump ship.

The good news, though, is that there are steps you can take to help make up for an absent raise. Here are a few worth considering this year if you want to send the message that you appreciate your employees. 

1. Give out extra vacation time

You may not have the financial means to pay your workers more money. But you can compensate by giving them added time off. From there, they can take the opportunity to spend that time pursuing side hustles to boost their income -- or simply enjoy more mental health breaks and vacation days.

2. Be flexible with schedules and hours

When you run a small business, you get to determine the company policies. And so if you can't give out raises this year, you can instead offer your workers more flexibility with regard to scheduling. 

Have people with kids on your team? Let them take a late afternoon break to collect their children from school and then make up the time later in the evening so they don't need to pay for a babysitter. Have workers with family in different states? Let them work remotely on occasion so they can visit more often. These may be fairly easy accommodations to make, and they could go a long way.  

3. Be generous with praise

You'd be surprised at how sentiments like "I appreciate your efforts" could really end up helping workers feel, well, appreciated. Sometimes, the gift of praise can offer a lot of value, so don't be stingy with your words. Say thank you when thanks is due, and do your best to call out staff members who go above and beyond. 

Not getting a raise can be a big blow at a time when living costs are still soaring. And in some cases, despite your best efforts to compensate, you might end up losing workers regardless who can't afford not to see their pay go up. But you can do your best to make up for an absent raise in 2023 -- and potentially retain more staff as a result.