Is your compensation plan ruled by irrational exuberance or a penny-pinching Scrooge-like mentality? Compensating employees is more often an art than a science. Don’t let emotions run the payroll department.

Business executives have found staff retreats pay dividends. How much is subjective. But some suggest getaways can power employee productivity more than paid vacations.

The question is how. Sluggish employees and inefficiencies can be a vicious cycle few businesses know how to break. Yet growing evidence suggests corporate retreats — even small-scale affairs over a weekend — can lift morale and the bottom line.

Once considered lavish junkets, and sometimes mocked for contrived team-building ploys like trust falls, the staff retreat is making a comeback. And the reason is easier to see than your spreadsheet trend line: Companies are figuring out how to have fun. To start, get rid of the PowerPoints. Encourage your employees to get out of the weeds and discuss big-picture ideas. Throw out some new goals and find a way to foster brainstorming. Don’t worry about splurging on a big-name guest speaker. After all, you’ve invested in your employees — harness the innovative thinking from them.

Make sure to stage your retreat in a relaxing setting. Those office walls can get pretty confining, no matter how many modern colors you paint them. If you want your workers to clear their heads and think differently, put them in an atmosphere that puts them at ease.

Ultimately, the goal is to give your staff a fresh perspective by putting them in a new environment where they can try new things. Kinda like a vacation.

Criticism hurts. After all, who wants a dressing down while on the job? Yet, there are ways to soften the blow to an underling’s self-esteem, when the need to discipline an employee is unavoidable. If the occasion calls for correcting a staffer, consider these five ways to instill character, while also preserving the relationship.

1. Lead by example. There’s no shortcut to instilling character in an employee, but providing your workers with consistent ethical behavior is the most important way to head-off ethical lapses in your employees. While it’s true you cannot always guarantee exemplary behavior in the workplace, some employees will be quick to interpret your ethical lapse as an open invitation to engage in improper behaviors.

2. Illustrate ethical quandaries. Don’t assume your employees are ethically literate. Sure, everyone knows it’s wrong to steal, but what about the ethics of sharing proprietary information with a company’s competitor? Believe it or not, some workers, particularly those who are under aged 25, may not have a fully developed understanding of ethical behavior. So, take advantage of opportunities to illustrate ethical quandaries, both through personal conversations, and also when addressing your employees as a group. Ensure workers understand exactly what the ethical expectations are in your workplace. Distribute a written copy of these to everyone.

3. Consistency is key. Never show favoritism, particularly when it comes to dressing down problem employees. The same rules must apply each time, save for that rare exception, when truly extenuating circumstances have wrought havoc in an employee’s life. For example, a worker undergoing tremendous grief or stress may deserve extra forbearance, even when job performance plunges. Sometimes, mercy should trump procedure, and a good employee can still be a contributing member of the team, following a period of recovery.

4. Maintain confidentiality. Never discuss disciplinary measures taken against an employee with anyone else, except on a need-to-know basis. Saving face may even save the life of a despondent employee. Suicides have occurred, when employees suffered humiliation in front of co-workers.

5. Pursue a redemptive approach. Everyone deserves a second chance, but not necessarily a third or fourth one. Keep a log of all disciplinary actions, and don’t depend on memory. This may also prove helpful, if an employee lodges accusations of discriminatory treatment against an employer.

No man’s an island. Good tips here for assembling a team of advisors to help you avoid the pitfalls in running your business.