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How to Motivate Employees on a Budget

How to Motivate Employees on a Budget

Liz Ryan / BusinessWeek

With recession looming—or underway, depending on who you ask—corporate budget managers are battening down the hatches when it comes to expenses. One of the areas where spending is stingiest is employee raises; last year’s average increase of 3.5% may look like a bonanza from the perspective of 2008, when many companies are likely to be giving raises of 2% or less.

Modest salary-increase budgets leave managers in a bind. On top of a tough hiring market fueled by Baby Boomer retirements, managers face a major challenge: keeping employees happy when their budgets force them to dispense Scrooge-like salary bumps.

Click through each page to learn some ideas to help keep your team engaged when you’re forced to be the tightfisted manage.

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