[By: Judith Brown] 

Let's get right to the point: every single person in your company either (1)wants more money; (2) needs more money; or (3) both. That should be common knowledge. So it's no wonder that when we hear complaints from our employees we assume we can fix the problem by simply offering them more money. It's our natural tendency but it can be a dangerous one.

Though money is a key factor in retaining good employees, it isn't the only factor. Most people want (and some even need) to be shown a measure of respect from their employer and colleagues. It's a confirmation that they are valued and worthy to your business.

So how can we show such respect? In a number of ways:

(1) Don't say things like, "We've always done it this way." If an employee comes in with an improved solution to a problem (whether minor or major), hear him out. And then try to find a viable way to implement his ideas-especially if it just might work!

(2) Schedule one-on-one time with your employees. From the custodian to the cook to the director of safety-you should get to know everyone who works for you: what their hobbies are, who their partners are, the names of their children, and even their favorite pet's name. You can do this by taking them to lunch, or even break time-but you've got to do it. Granted, it might not be easy to retain the information, but just knowing your boss is interested in what you're interested in makes you want to work that much harder for him. It might sound hokey, but it works. People have a genuine need to share their "real" home life with their colleagues. Because we spend more time at work, we sometimes need a connection with home. We do that by mentioning our families, their accomplishments, goals, etc. with others. And when someone else shows the smallest bit of interest in our family members, we respond in kind: we work harder, we get along better.

(3) Ask them how they're doing-and listen! It strikes me funny how people walk pass a desk or workstation asking, "How ya' doing?" only to keep walking. In other words, 'I don't really want to know...just being polite,' which in itself is rude. You may not be expected to spend hours on end listening to vain "you'll never guess what me and my boys did over the weekend scenarios," but truth is, if you don't have at least a measure of casual info on each of your employees, not only do you show you don't care, they know it.

(4) Value your employees' opinion of you. The caveat to the rule above is that genuine communication is a two-way street, so your employees will expect you to share a bit of you as well. You might let them know what your hobbies are, and how your family's doing, etc., you'll have to be careful on revealing anything that might compromise their respect for you. In other words, DON'T tell your employees you were pulled over for a DUI at 3am. And any Internet social network you might be a member of (MySpace, YouTube, Google, etc.) should NOT reveal sexual innuendos.

So invest in your employees as real people. Treat them with dignity and respect. Care about them. It's the right thing to do and it's smart business sense. Remember, it takes much less money to retain an employee who already knows the operations of your business than to go through the hiring process and retrain a new employee-hoping he or she will "get it."

Be a Smart Boss...and recognize what's important to your people: although money is certainly welcome, it's only half of what really matters.