Job perks that don't cost much - Can't get a raise? There are work-based rewards other than higher pay

Don't forget that as a Job Seeker can use perks as a tactic to bargain if you can't negotiate on salary.

WASHINGTON (MarketWatch) Aug 23, 2010 -- You've managed to keep your job during the recession and labor cutbacks. But you may have been working longer and harder than ever with no extra pay, or maybe even endured a pay cut.

As the economy slowly starts to recover, however, some companies are looking to better compensate their workers. For employees at companies that are strapped for funds, experts say these workers can request rewards that won't necessarily show up on a paycheck.

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"Smart companies are recognizing that we are not where we were in 2009," when jobs were being shed left and right, said John Challenger, chief executive of outplacement consulting firm Challenger, Gray & Christmas. And some companies are now starting to hire. So companies "are looking more to understand who their best performers are, and how to keep them," he said.

Companies project merit increases of 2.7% for 2011, compared with 2.3% for 2010, and 1.6% in 2009, according to a survey of 1,046 U.S. companies conducted in April, May and June by New York-based professional-services firm Towers Watson.

Workers with below-average performance ratings will receive a median merit increase of 1.4%; those with an average rating will receive an increase of 2.6%; and those with the best rating will receive a 4.3% increase, according to the survey.

"Pivotal employee groups are in a stronger negotiating position," said Laura Sejen, global head of pay consulting at Towers Watson.

Here are some options:

Flexible schedules

Flextime -- allowing individuals to alter their working hours -- can be an attractive reward for hard-working employees, experts said.

"It might be that someone says: 'I want to go home at 3:00 to be with my kids,"' Challenger said. "A lot of times, these kinds of arrangements can get individualized. Maybe it's coming in a little bit later or working at home on Fridays."

Companies can consider allowing workers to compress their work week, say, working 10 hours a day, four days a week, instead of eight hours each day, five days a week.

"People are utilizing that as a methodology for engaging employees without costing the company any money," said Milton Perkins, senior director of work-force consulting solutions for Agile 1, a Torrance, Calif.-based workforce management organization. "At the end of the day, it's about production."

New job skills and responsibilities

Employers can teach workers new skills to reward them, Perkins said. "Increase [workers'] skills set with the hope that at some time in the future, if the opportunity presents itself, they will be qualified for higher-paying jobs," he said.

While expanding employees' job functions isn't a guarantee of a pay increase, Perkins said, giving them more varied work can help to keep them interested, perhaps even more so than just a salary bump.

"If I give you a 2% raise, you won't jump through a ring of fire," he said. "The things I am talking about are more intrinsically motivating, where people feel better about being at work, and therefore there is more productivity."

Linda Lulli, associate vice president for human resources at Bryant University in Smithfield, R.I., said employers can reward younger workers by somewhat stretching their assignments.

"A lot of individuals are looking for career enhancement or growth," she said. "They can participate in higher-level meetings, or be asked to be a part of projects that they would not normally be involved in."

Lulli also recommended mentoring programs to help younger workers grow professionally.

Career development and tuition reimbursement

Another option is getting employers to pay for courses, seminars and conferences, or membership to professional groups, experts said.

"There's an investment for the company, but also the employee gets something out of it," said Bob Cartwright, chief executive and founder of Intelligent Compensation, a compensation and human-resources consulting firm in the Austin area.

Workers can ask to attend classes to help them develop skills, and those who are highly productive can even inquire about receiving a higher reimbursement rate, experts said

Companies gain better-trained employees, while workers widen their skills. "There is a whole range of benefits that companies might be willing to offer, win-win benefits where it seems like an investment," Challenger said.

Small gestures

Cartwright said firms should make small moves such as rewarding top performers with a dinner. Bosses at retailers can offer bigger employee discounts.

"It isn't cash, but it provides [employees] with the opportunity to have more goods or services," he said. "These are the kinds of small things that help to create a better environment. People are going to think twice about walking across the street to make another 25 cents an hour when they know they are working in a great environment."

Ruth Mantell is a MarketWatch reporter based in Washington.