20/03/2026
Employing people is getting more expensive.
Between rising costs and changes under the Employment Rights Act 2025, many small businesses are having to think carefully about pay and benefits.
But rewarding your team doesn’t always have to mean increasing salaries.
In reality, some of the most effective rewards in small businesses aren’t cash-based at all.
Here are a few options we see working well:
✔️ Flexibility that fits the business
Later starts, compressed hours, predictable shifts or more say over rotas can make a real difference without increasing wage costs.
✔️ Extra time off
An extra day of leave or the chance to earn one after a busy period often feels more valuable than people expect. The cost is time, not a permanent increase in pay.
✔️ Holiday trading, with clear limits
Letting people buy or sell a small amount of leave can be cost-neutral, as long as cover, records and boundaries are clear.
✔️ Salary sacrifice, only where it genuinely works
For some small businesses, simple schemes like pension or cycle to work can benefit employees and reduce NI. For others, the admin outweighs the benefit and that’s okay.
The main thing to remember is that reward works best when it’s intentional, realistic and sustainable for the business.
In small teams, flexibility, time and a genuine thank you often matter more than anything written into a policy.
How are you rewarding your team right now without increasing fixed costs?