12 Ways to Keep Employees and Save Money

In troubled times like these, having an employee-retention policy centered on golden handcuffs can be financial suicide. Keep staff happy and on your payroll by adopting these 12 incentives that won't put you in the red.

What's your corporate culture? Before you figure out what rewards to offer, think about your company's mission and culture. Does the work environment encourage someone to pitch in if he finishes his work? How well does a certain employee fit? Part of retention is making sure you have the right players on your team, says Douglas Lipp, author of "The Changing Face of Today's Customer: Strategies for Attracting and Retaining a Diverse Customer and Employee Base in Your Local Market" (Hickethier Publishing International).

"Hire right and then train right and treat right," he explains. "Often times, when owners and managers are trying to get people, they are just hiring a warm heartbeat. They are not considering the culture and the needs of the team. If you have the wrong people on board, you can spend all the money in the world to train them, but you're still shooting yourself in the foot." Hire the people with the right attitude and "turnover is less by default."

Pay them in pats: On the back, that is. People like to hear they're doing a good job. They need to feel their hard work and contributions are being acknowledged. Hence, take the time to take them aside and thank them on a regular basis, says Susan Rae Baker, founder of Future Endeavors LLC, a life and business coaching firm. Talk can be cheap.