Besides offering higher salaries, financial incentives can come in the form of kicking in a bonus if a job is completed under budget or springing for a party when company goals are reached. Managers should also ensure equitable pay by periodically making market comparisons and adjusting salaries accordingly. For new staff, Martin and Lombard note that hiring incentives are increasingly common. It is also important to ensure that you are not paying new hires more than current employees in similar jobs. Such practice, the authors explain, will not enable you to retain current workforce.
Work environment can be even more effective for employee retention than any financial incentives.