In the last several blogs I’ve been talking about the tough economic times we find ourselves in. For managers and business owners, there’s a real concern of how you can keep your best employees happy and productive.

As I’ve said before, money isn’t everything. Sure, we all want a pay raise. But we also want a life. Remember that while your best employees want to give their all to your company, they also want to retain some balance in their lives.

So help them. If you’ve never offered alternative work arrangements before, this is a good time to consider these options:

• Part time or work-sharing. This is particularly appealing to working parents who might prefer to “share” their job with someone else and have more time with the kids.
• Work at home.  If you don’t need people physically in the office to do their job, you might let them do some of their work from a home office.   In this age of email and instant messaging, you can communicate as easily as when they’re in the next cubby.
• Flexible hours. Work noon to 8pm? Thursday to Monday? Ten-hours four-days a week? You might be surprised at how delighted workers can be when given a chance to “own” their time.

Depending on your workplace, you might have some alternatives of your own that meet your needs better. Your employees will appreciate that you recognize them as human beings with a life of their own, and they’ll reward you with their loyalty and productivity.

I’ve been blogging about our tough economic times, and now I want to speak to business owners and managers about the effects in your workplace.

Don’t be surprised if morale is low among your employees, particularly if there have been some layoffs. Even those employees who kept their jobs may not have survived emotionally intact. And quite frankly, that affects their productivity.

You might start by simply acknowledging the difficulties your workers have faced. Let them know that the boss appreciates them “hanging in there” during uncertain times. And if the financial prospects are still ambiguous, acknowledge that, too.

You may have no money for bonuses or pay raises, but that’s not the only reason people work hard. Take time to recognize employees individually for their hard work, their accomplishments, their contributions to the company. Be specific in your praise and they’ll know you mean it. Psychological rewards are mighty.

Next up: managing your own uncertainty.