Many of the most popular tips for recruiting and retaining high-quality employees revolve around expensive incentives. While big-ticket items or several paid vacation days certainly can be effective, their expense may outweigh the benefits. Keep in mind that the average cost of employee turnover is $2,000, which means that motivating and retraining an existing employee should never exceed that amount. Here are some of the most cost-effective strategies for motivating employees.

Friendly Employee Competition

Rather than offering every employee a cash or high-value incentive for meeting a specific goal, consider hosting a friendly competition among employees within a certain department or office. Making the reward something like a paid vacation day could potentially be expensive, but making the “losers” of the competition take over the duties will help spare the business from any real expenses. The key to executing this strategy successfully is to make winning the contest achievable. That means awarding a prize to one in 10 employees rather than one in 100.

Instill a Sense of Job Security by Teaching New Skills

The most motivated employees are those who believe that they have a future with their company. Instilling job security is not as simple as just saying the words, but it can still be cost-effective. The best technique is to have managers or owners go out of their way to teach employees new skills. Actively investing time in the betterment of an employee signifies appreciation and value, which in turn can motivate employees to work hard for their business.

Make an Effort to Personally Speak With Employees

Human interaction is one of the simplest ways to motivate employees. This approach may not be new, and it may not be time-effective, but it can certainly be cost-effective. Small notes of appreciation, short conversations about a specific project recently completed or a company-wide, email praising effort can go a long way in keeping employees motivated and eager to succeed.

Motivating employees doesn’t have to be an expensive ordeal involving cash rewards or large incentives. Friendly competition, personal recognition and feelings of job security all motivate just as well as costly alternatives.