It’s crucial that companies reward their hard-working employees that consistently go above and beyond for the good of the business. Properly rewarding your employees shows that you appreciate them, which in turn helps to keep staff turnover low and cultivate a positive . Plus, it’s far easier for a company to grow when its best people aren’t constantly moving onto pastures anew. However, as opposed to merely sticking around, staff that feel that their employer values and adequately rewards them are more likely to put forth their best effort and ideas.
The vast majority of people prefer their reward to be a monetary one, in the form of increased salary or a bonus. This is completely understandable – who doesn’t want to be paid more for their labour? That being said, pay rises and bonuses are issued once a year respectively, so how do you reward your employees the rest of the time? Also, it might not be feasible, budget-wise, to give a valuable employee more money, so what can you offer them instead. This post looks at a few non-monetary ways of rewarding your staff to boost employee morale and physical health.
Employee assistance programs support mental health and well-being as non-monetary rewards.
What are Non-Monetary Incentives?
Definition and Benefits
Non-monetary incentives are rewards that do not involve direct financial compensation but are designed to motivate employees and enhance job satisfaction. These incentives can take many forms, such as flexible working arrangements, employee recognition, extra time off, experiential rewards, development opportunities, health and wellness programs, mentorship programs, company-sponsored events, time to work on personal projects, and personalized rewards.
The benefits of non-cash incentives are manifold. They can significantly boost employee engagement by making employees feel valued and appreciated. This, in turn, can lead to higher levels of motivation and job satisfaction. Additionally, non-monetary incentive programs can improve employee morale and retention, as employees are more likely to stay with a company that invests in their well-being and personal growth. By offering a variety of non-cash rewards, companies can create a more dynamic and supportive work environment that fosters loyalty and commitment.
Why Use Non-Monetary Incentives?
Advantages Over Monetary Rewards
Non-monetary incentives offer several advantages over traditional monetary rewards. Firstly, they can be more cost-effective, as they do not always require an additional financial reward. This makes them an attractive option for companies looking to reward employees without straining their budgets.
Secondly, non-monetary incentives can be tailored to the individual employee’s achievements, goals, and personality, making them more meaningful and memorable. This personalized approach can have a more profound impact on employee satisfaction and motivation compared to generic monetary rewards.
Thirdly, non-monetary incentives can promote creativity, camaraderie, and engagement among employees. By offering rewards that encourage team-building and personal development, companies can foster a more positive company culture. This can lead to a more cohesive and motivated workforce, which is essential for long-term success.
Finally, non-monetary incentives can be more effective in the long term. While monetary rewards may provide a temporary boost in motivation, non-monetary incentives can create a lasting sense of loyalty and commitment. Employees who feel valued and supported are more likely to stay with the company and contribute to its success over time.
More time off
Next to remuneration, a generous annual leave allowance is the most important part of a compensation package for the majority of people. Having more days off gives an employee more holiday options, such as going further afield and taking longer vacations, as well as more opportunities to unwind away from work.
For this reason, it’s not uncommon for companies to increase an employee’s holiday allowance – adding an extra day for every year of employment, for instance. But there’s nothing stopping rewarding a member of staff with more annual leave whenever you see fit. This could be in lieu of a pay rise or for a particularly well-done job on an important project.
Non-monetary rewards are more budget-friendly compared to cash incentives. Financial incentives are often less effective compared to non-monetary rewards like additional time off which has a greater positive impact on staff.
Flexi-time
Similarly, if an employee has proven themselves responsible and trustworthy, as well as valuable to the company, then perhaps you can offer them flexible work arrangements in place of a pay rise. The ability to decide when they work gives an employee more control over their day and empowers them to craft their desired healthy work/life balance to support employees. This flexibility needn’t be too drastic, however. if it’s important that they’re in work during key hours, you could give them a 2 or 3-hour window to play with, in the morning and evening. For some members of staff, namely those with families and lots of obligations outside work, this could be perceived to be more valuable than a salary bump.
Employee assistance programs support mental health and well-being as giving employees non-financial rewards.
Professional Development Opportunities
Career development opportunities are a powerful form of non-financial rewards that can significantly motivate employees. These opportunities can include training and development programs, mentorship programs, education assistance, constructive feedback, and career advancement opportunities. By investing in employees’ professional growth and career development, organizations demonstrate their commitment to their employees’ success and well-being.
Offering professional development opportunities can lead to increased employee engagement, as employees feel that their employer is invested in their future. This can also boost motivation and job satisfaction, as employees are given the tools and resources to advance their careers. Additionally, professional development opportunities can improve employee retention and loyalty, as employees are more likely to stay with a company that supports their personal and professional growth.
Moreover, employee assistance programmes help employees develop new skills and knowledge, making them more valuable to the organization. This not only benefits the employees but also enhances the overall capabilities of the company. By fostering a culture of continuous learning and development, organizations can ensure that their workforce remains competitive and adaptable in a rapidly changing business environment.
Gifts and non monetary incentives
Many companies already offer their employees perks and incentives, with company cars and short, all-expenses-paid getaways being popular choices as well as employee discounts via reward partners. But there are lots of other items you can use to reward employees more frequently. This includes simple, less-expensive things like food or drink hampers, gift vouchers, and theatre tickets, for instance. Cash rewards or a cash bonus can complement these non-monetary rewards, providing a balanced and comprehensive incentive strategy.
Personalized non-monetary rewards have a lasting emotional impact on employees with 65% of employees preferring non-cash incentives over monetary ones.
Social events and positive company culture
Boosting employee morale through social events fosters camaraderie and strengthens team bonds as non-monetary rewards as well as experiential rewards create lasting memories and positive associations with the employer.
Internal staff awards can also be a beneficial tactic at all-hands events or ’employee of the month’ for public recognition, this can be paired up with a small incentive program for those who recieve the reward generally leading to greater business success and employee growth.
Employee recognition
Last, but by no means least, is recognising your employees’ efforts and achievements to boost employee motivation. Though it’s an intangible reward, when given properly and sincerely, recognition can be incredibly effective. And the best part? It costs companies absolutely nothing – yet, sadly, lots of companies fail to recognise their staff for their hard work as often as they should. Worse still, some managers are in the habit of accepting all of the praise, for their team’s hard work and none of the blame. Which leaves their employees feeling stiffed, unappreciated, and that it might be time for a change of scenery.
Non-monetary incentives can contribute to lower employee turnover rates as well as improve productivity by up to 44% in some organizations.
Recognition makes a person feel their contributions are valid and mean something. That they’re competent, perhaps even talented, at the thing they spent most of their waking hours doing. Even high-achieving, productive, seemingly confident employees need a genuine reminder of their worth once in a while – and this can be achieved by simply recognising their performance.
