Creating a better working environment:
an inexpensive guide to attracting and retaining employees

It can be difficult for smaller firms to compete with the salaries and incentives offered by larger firms to prospective and existing employees. However, as Nina Ries, an attorney at Newell, Campbell & Roche LLP, argues, an employee’s choice of firm can be based as much on the working environment and quality of life as the offered salary and bonus schemes.

The 1996 film Jerry Maguire coined the phrase “Show me the money,” and the term quickly entered the public consciousness. A few years later, law firms raised associate salaries to compete with lucrative offers made to their young attorneys by dotcoms and to retain employees in the booming economy. Websites featuring discussions about ‘greedy associates’ gained popularity, and virtually everyone in the legal community had an opinion about the rising price of new talent. However, despite additional work and clients brought on by a robust economy, small firms felt as though they simply could not compete for talent given the sky-rocketing salaries offered by larger firms. But small firms can compete by capitalising on the reasons attorneys seek small firms in the first place: quality of life and a positive work environment.

Studies have shown that stress, poor communication and the perception of unfairness adversely affect an employee’s productivity and are the primary contributors to absenteeism. Employers who actively sustain a positive work environment reap vast benefits. According to the Journal of Applied Psychology, companies could experience up to a 25 per cent improvement in the quality and quantity of production. Happy employees are more likely to remain with their company, take pride in their work, are more efficient and tend to work harder, to the joy of their employer and clients. This has a direct impact on the company’s bottom line, by increasing the company’s profit margin and reducing the costs associated with hiring and training new employees.

Thankfully, there are many simple, inexpensive ways to entice employees to become more diligent, hard working members of the team.

Extend common courtesies to all employees
Simple common courtesies, such as a simple hello and “how are you doing,” go a long way to foster a warmer office environment. Employees believe that supervisors who ask how they are (and listen to the answer) genuinely care about them. They become more vested in their work, and more eager to help around the office.

Remember also to thank employees for a job well done. Recognising their contributions makes them feel like a part of the team, and they will adopt a team mentality. Simply extending social courtesies like saying please, thank you and admitting when you are wrong is an easy, cost-efficient means by which to make the workplace a happier place.

Foster positive relationships
Take the office to lunch once a month (or organise a monthly potluck) and forbid them from talking about work. This will encourage coworkers to relate to one another on a personal level. If the office is full of families, organise a work outing involving families, such as ice-skating or miniature golf.

Employers must not confuse a congenial work environment, full of satisfied employees, with one that necessarily involves excessive play and insufficient work. Employers may avoid excess play by setting aside specific times for employee interaction and company events. By limiting the time and place of such activities to monthly scheduled activities, the employer can maintain the decorum appropriate for the workplace, and yet cultivate the kinds of relationships upon which trust and loyalty are based.

Provide snacks and drinks
Everyone is familiar with the three (or four) o’clock slump. By providing snacks and drinks to employees, the employer can ensure that the slump is brief, to the benefit of productivity. Buying in bulk will help the company keep costs down while stocking the shelves with water, sodas and juices, chips, muffins and granola bars. The smaller business may even consider allowing employees to select their own snacks and drinks before ordering, to prevent waste.

Celebrate birthdays
A card and a cake go a long way, and are inexpensive ways of expressing appreciation on an employee’s special day. The company may also consider giving the employee a gift, such as a $50 gift certificate to a bookstore or restaurant. This is a particularly nice gesture requiring minimal investment, and producing large returns from very grateful employees.

Host a breakfast once or twice a month
Another inexpensive way to brighten employees’ day and provide for a more gratifying work environment is to bring in donuts, muffins, pastries or bagels with cream cheese a few times a month, telling employees that it is the company’s way of thanking them. This is also a small gesture requiring little effort, and will make employees feel appreciated.

Mentor your employees
The most effective way to retain employees, of course, is to have a vested interest in their learning. Help them become better at their jobs, offer constructive criticism and explain why things are done a particular way. They will become better employees and they will be thankful to you for having taken the time to train them.

Institute an incentive-based bonus system
Incentives encourage higher productivity, improve morale and discourage employee flight for higher paying jobs. Companies rely on their employees not only to sustain business, but also to attract it and to advertise for the company. Some companies benefit from offering monetary incentives for hard work or client referral, and reimbursement for participation in outside activities that may reasonably lead to client referral. Such a system will ensure that the company pays bonuses when it knows that additional money is flowing in, and additional incentives can be supplemented, such as event tickets or dinner, or additional time off as a reward for good work.

Of course, it will take more than just a few gatherings, niceties and theatre tickets to maintain a company full of happy employees, but minimal efforts can produce considerable rewards. Best of all, these efforts need not be costly, and even those expenditures will likely produce profits several times the initial investment.

Nina B. Ries is an attorney at Los Angeles firm, Newell, Campbell & Roche, LLP. She can be contacted at nries@ncrlaw.com

Creating a better working environment: an inexpensive guide to attracting and retaining employees

Creating a better working environment:
an inexpensive guide to attracting and retaining employees