Recruiting and onboarding new employees can be costly, so high turnover is something few businesses can afford. To minimize turnover, it’s important to develop strategies to attract quality employees and retain them. Obviously, it’s important to offer competitive compensation and benefits, such as health insurance, profit sharing, and retirement plans.

But while financial incentives are necessary, throwing money at the problem isn’t enough. Nonmonetary incentives can be a great way to differentiate your business from its competitors. Here are four tips to consider:

1. Promote work/life balance. Don’t underestimate the importance of work/life balance. Letting employees know that you recognize their need to spend time with their families and friends and on other personal activities can be a powerful recruitment and retention tool. It’s important to understand that “balance” means different things to different people. For some employees, flexible vacation and time-off policies are a big draw, while others favor work-related benefits, such as telecommuting, job sharing, flextime (e.g., compressed workweeks), or a casual dress code.
2. Offer training. Training opportunities are attractive for many employees. Training programs can help employees do their current jobs better or teach them new skills they’ll need to transition to different roles. This benefits businesses as well as technological developments change the way things are done and require employees with different skill sets.
3. Start an internship or returnship program. Internships and “returnships” (essentially, internships for older workers who are rejoining the workforce) create a relatively risk-free opportunity to test out potential new hires and help them develop new skills.
4. Engage employees. Equity-based compensation and other performance-based financial incentives help align employees’ interests with those of the business. But there are also many nonmonetary ways to engage employees. Simply communicating better with employees about the company’s activities, successes, and challenges can go a long way. Other ideas include creating employee recognition programs or asking strong performers to mentor other employees.

To attract new employees and hang onto the ones you’ve got, your business should offer a combination of financial and nonfinancial incentives that acknowledge employees’ different wants and needs.