A Show of Appreciation

Rewarding employees with an endof- year gift or bonus is a savvy management strategy. Florida's low unemployment rate and the competition for top-notch workers means it's important to keep employees happy. Here's how two small businesses are showing they care.

Something for Everyone

Who: Andy Cagnetta, president and CEO, Transworld Business Brokers, Fort Lauderdale

Gifting strategy: When the company had 25 employees, Cagnetta picked out a personal gift for every person, taking into consideration hobbies, interests and family. Now, with a staff of 60 spread over 10 offi ces, he does a more generic gift package with a few inexpensive items such as pens, hats and shirts along with a more substantial, but still not overly expensive, item like a nice watch or MP3 player. "It's something to say, 'We're thinking about you,' " says Cagnetta. For those employees with stellar sales results, he gives a little extra in the form of a gift card for as much as a few hundred dollars. The gifts are presented at a company party where spouses and other family members are invited along with the business's bankers, accountants and other referral sources.

What else: Cagnetta buys preprinted cards but says, "I personalize every single message in there."

Money Talks

Who: Craig Polejes, president, Florida Bank of Commerce, Orlando

Bonus strategy: As president of a 1-year-old community bank, Polejes wanted to give employees an incentive to make the bank a success. His decision: Stock options for everyone, not just executives. If the bank makes its fi rst-year goals -- and it looks like it will, says Polejes -- every employee will receive 20% of his or her base salary, half in the form of stock options and half in cash. When you have employees who have an ownership interest, it's mutually benefi cial, he says, adding that options at other community banks have paid off big for employees. "It's life-changing down the line." The options will fully vest over fi ve years at 20% a year. Polejes says the incentive plan for the bank, which has three branches and $60 million in assets, will continue in "our formative years."

What else: Polejes believes that a pat on the back is also valuable. "I think that recognition is hugely important," he says. "It's not all about money."

MATCH GAME
International Gift Giving
In many parts of the world, it's inappropriate to give a sharp object such as a knife or letter opener as a gift because it signifies the severing of a friendship or relationship. Test your knowledge of global gift-giving etiquette by matching the appropriate gift with each country.

Tags: Florida Small Business, Entrepreneur