The Office Heroes scheme identifies the ‘unsung heroes’ of Britain’s small businesses. We spoke to our pick of the finalists to track down some insider tips on retaining and motivating your top performers

A few months ago, we launched Office Heroes, an initiative that asked entrepreneurs to reveal the hidden gems of the UK’s small, fast-growth businesses. When a judging panel that included serial entrepreneur Ben Way and Glasses Direct founder Jamie Murray Wells met to choose 20 finalists and one winner, they were looking for people who had contributed to their company’s success above and beyond their job description, or led outstanding growth or improvement of a department.

When the results came in (the profiles of all finalists), we decided to meet up with some of the nominees and their bosses to get advice on boosting morale, reducing staff turnover and inspiring employees to perform to the max.

Think differently

Smaller firms sometimes complain that they can’t match the financial clout, staff benefits or job security offered by the big boys. While the recession might be temporarily levelling the playing field when it comes to finding and keeping talent, the entrepreneurs we spoke to believe you should always be looking for something different when hiring.

James Perkins, co-founder of live music recordings firm Concert Live, looks for creative potential. “We want free thinkers and aren’t after the corporate thing,” he says. “There’s a certain amount of institutionalisation in bigger companies; you become a part of the machine.

“We try to nurture people who want to stand out from the crowd. That’s one of the things we have to be wary of when recruiting.” To date, the company has yet to lose a member of staff to a larger rival.

Perkins’ Office Heroes nominee, operations director Gareth Horseman, runs the company’s live tours. He says he likes this role more than previous jobs, because he’s working for an entrepreneurial company. “I’m enjoying being able to shape the direction of the business,” he says.

The diversity of experience that small companies are able to offer employees can also be an advantage, so resist the temptation to pigeonhole staff; you’re fast moving, so your people need to be as well. “All of our roles overlap, so I’ve been able to get stuck into a lot of different things, including marketing, IT and the web. I see the whole package,” says Horseman.

Perkins says he has tried to instil an entrepreneurial ethic into his staff. “Rather than having clear, process-driven roles, we like them to be adaptable,” he explains.

Share your vision

One reason behind Horseman’s job satisfaction is that Perkins and co-founder Adam Goodyer work hard to involve staff in planning the business. “Because it’s their company and they started it from scratch, we’re always looking forward to where the business can go to meet the vision they have for it,” says Horseman.

Rachel Kay, co-founder of £6m-turnover landscape and construction supplier Green-Tech, nominated overall winner Roxanne Lupton, the company’s bulk logistic co-ordinator. Kay agrees that communicating your vision clearly is crucial. “We have a fabulous business. We’re the best in our niche – I believe this so it’s instilled into the staff. It’s our motivation that inspires our staff to keep achieving results,” she says.

The company conducts monthly review meetings to tell staff how the organisation is performing, as well as communicating its growth plans for the next five years. It also engages staff in ‘lemon squeezing’ exercises, a group brainstorm to come up with ways of cutting costs and getting more business out of existing customers.

Look and listen

Lupton says the approachability of senior management helps keep the team happy and motivated. “Managers are good at helping us put new ideas into practice,” she says. “If you need help, they’re available.”

Perkins says constant communication is important at Concert Live. “We want staff to feed back the value they feel they’re adding to the business, what they’re getting out of it, what they could be doing that’s more effective and how they could be using their time more efficiently,” he explains. “Ultimately, we want to ensure our strategy is aligned with the personal goals of the individual who’s responsible for achieving that strategy.”

A recurring theme among our group was the importance of monitoring. Perkins can see what everyone is doing on a “daily, weekly and monthly basis” thanks to an online application that allows management to track the particular projects and tasks any one person is completing at any time.

Kay emphasises the importance of regular PDP (personal development plan) review meetings, which allow her to be sensitive to the needs of her team. Green-Tech plans to boost turnover to £10m by 2011, so responsibilities will evolve. “If you keep on top of PDPs, you’re aware of the skill sets you’ve got and how they might be used in the future, you can also identify where you might be lacking, so you know what you need.”

Perkins uses staff feedback to source creative ideas and make sure the business is working efficiently. “If staff think there’s something we’ve implemented that’s flawed, we’d rather hear about it than have them struggle on and not have the most effective way of doing things.”

Praise and prizes

There’s a multitude of options when it comes to benefits and bonuses, but the core principles are the same: set ambitious (but always realistic and achievable) measurable targets in collaboration with your staff, offer training opportunities and reward appropriately. While you probably can’t afford to be paying a premium on your wage bill, you can implement policies that will help motivate and retain high performers. What you can’t offer in impressive salaries, you can make up for in job satisfaction and career development.