Non monetary incentives are often perceived as less significant in comparison to their monetary-based counterparts.
When you think of an incentive program, what comes to mind? Present cards? Cash rewards? Bonuses?
Yes, believing that monetary prizes are the best way to recognize hard work is simple: It’s perhaps the oldest method of thanking employees for their effort.
But the figures don’t reveal much of an impact: Studies indicate that top-performing employees only truly benefit from financial bonuses roughly half the time.
Nowadays, employees want increasingly individualized, non-monetary rewards from their companies. Therefore, the days of using monetary incentives to motivate and keep your staff may long be gone.
According to a study conducted by the Incentive Research Federation on behalf of the Incentive Marketing Association: 65% of workers say they prefer non monetary incentives to monetary compensation.
Financial incentives and motivation might help attract talent to your company. Because money serves as an external incentive, this sort of motivation is also known as extrinsic motivation. However, non monetary incentives may serve as a lasting intrinsic drive that improves employee retention.
There are numerous non-cash rewards that could be beneficial for both you and your workforce. But prior to that, it is crucial to understand the advantages of non monetary incentives.
This blog post brings you some of the finest examples of non monetary rewards. Along with that, we also mention some of the advantages that come with such kinds of rewards.
Benefits for the companies that use non-monetary incentives
Non monetary incentives may make employees more enthusiastic and appreciative due to the fact that they can’t be spent as cash rewards: A lunch with the manager, a vacation to a mountain resort, or an unexpected day off may hold more value than additional cash.
Cash prizes have the potential to be overlooked. It is because they could be used for regular expenses or bills without a lasting connection to the actions that earned the employee a reward from their company.
Employees may become more emotionally affected by non-monetary rewards and feel more appreciated and engaged as a result. In addition, psychological theories also suggest that people appreciate non-financial rewards higher than the award’s actual cash worth.
Let’s look at the benefits for the companies that use non-monetary incentives:
1. There is separability in non-monetary rewards
Cash rewards for great performances are no longer noteworthy because, you see, categorizing revenue sources is a psychological tendency.
Given that both (monetary and non-monetary) are financial and are obtained through employment, they will combine their salaries and cash bonuses as one source of income.
However, non-cash rewards, such as paid time off, accolades from others, or vacations, shine out and are simple to distinguish.
In contrast to cash, which they won’t even remember, non monetary incentives build experiences and add greater value for the employees.
2. They attract Generation Z and millennial workers
In entry-level positions, Gen-Z and millennials may be more inclined to prioritize financial factors over non-financial ones.
However, young workers do not exclusively consider pay while choosing a job. These days, queries about workplace morale, work flexibility, and company culture come second to questions about salary.
Since the company perks may be especially appealing to recent graduates, Gen-Z and millennial employees can be recruited and retained by your company through an extra day off, employee incentives, and wellness programs.
In fact, according to a Gallup survey, employees place employee well-being among their top demands for companies.
3. Non monetary incentives may be more emotionally meaningful and remembered
Receiving a sincere “well done,” a handwritten note of gratitude or a particular shout-out on a social media platform may be more noteworthy than receiving extra financial compensation.
In essence, a motivated employee may value non-cash compensation more emotionally. So, the emotional value of the incentive may increase when workers receive something they can keep, display, or use.
4. Non-cash rewards are easier to talk about and acknowledge
Conversations are sparked by experiences.
Your staff members want to discuss the incentives or prizes they get for their efforts and achievements.
The majority of your staff might be more enthusiastic and at ease discussing a lunch with their supervisor or a trip/ class they attended than any monetary award.
Examples of Non Monetary Incentives
1. Workplace flexibility
Flexibility at work refers to the capacity to choose the hours and locations at which one works. And it may be a fantastic non-financial reward.
Provide your staff with remote choices, such as letting them choose their schedules for work and having remote work at least once a week.
Basically, providing flexibility may help workers in striking a healthy work-life balance. So, it may be one of the better ways of motivating employees through non monetary incentives.
No doubt that employees would appreciate being able to work around their schedules. Furthermore, it may also lead your company to have the following:
- Employee commitment and involvement
- Increased dedication to the organization
- Greater employee satisfaction at work
2. Recognition & Rewards
One of the best ways of motivating employees through non monetary incentives is to have a relevant program that recognizes and subsequently rewards employees.
Naturally, employees that have put in a lot of effort will value recognition greatly.
Moreover, an effective recognition program uses unique or individualized methods. Some examples of non monetary incentives in this regard could include:
- Sending a handwritten note or an email of gratitude
- Giving employees gift cards as compensation,
- Praising and highlighting an employee’s achievements in front of others during a meeting or on social media.
Lastly, successful employees may value such experiences for longer when they are publicly recognized for their accomplishments.
3. Give employees a surprise off-day
Apart from the weekends, who doesn’t enjoy an extra day off?
Everyone appreciates a little additional vacation time to keep a healthy work-life balance. Because of this, offering an extra day off in addition to yearly leave(s) is the ideal employee reward.
Employees will feel appreciated for all of their hard work and be inspired to work even harder if they are given a day off as a reward.
4. Let employees volunteer a noble cause
Provide employees with time off from work so that they can volunteer for anything they like.
Working in the same area every day with the same people could seem repetitive and self-serving. So you allow employees to volunteer in the community to improve their morale and experience a life besides the office space as well.
Additionally, it fits perfectly with the brand of the business. As a result, both the company and the employees benefit.
5. Offer comprehensive training programs
Employees frequently find ways to enroll in courses and training related to their line of work to advance their careers or personal growth. However, they frequently may not have access to such courses or training.
Your staff will benefit greatly if you offer training programs, make approved courses or seminars available, or both. It can enhance their abilities and give them the impression that you are concerned about their personal development.
So, this one can be one of the most effective non monetary incentives.
6. Experiential rewarding
Employee recognition programs using experiential prizes are growing in popularity.
An employee earns an experience or an event as their experiential reward: Be it a day at the spa, a match ticket, a vacation to a hill station, or anything else your staff might like.
Employees may value these awards more than receiving cash as compensation for their efforts. Instead of the experience itself, these rewards offer people the ability to forge memories, which significantly impact behavior.
Lastly, these bonuses are not included in the weekly or monthly budget, whether it be a paid vacation or a straightforward gift card to a restaurant.
7. Give employees chances to take on leadership roles
It’s true that some workers might be content with the level of responsibility and difficulty they now have. On the other hand, some could be trying to figure out how to use their new knowledge or experience.
For some employees, leadership offers the appropriate amount of challenge and responsibility, which may be a terrific reward. It also conveys your appreciation for their abilities and gives them a sense of trust.
Giving your staff members a chance to lead can tremendously encourage them to develop and succeed. Furthermore, it will demonstrate your respect for their opinion, which can greatly raise their self-esteem.
8. Increase employee autonomy at work
Your employees adore their freedom.
Your staff would benefit greatly from being given the freedom to complete a task independently without interference from you or another person.
Your employees may be more driven to produce quality work when given the option to do things their own way. Engagement levels are also likely to increase due to their desire to demonstrate their abilities.
According to an Effectory survey, 79% of autonomous workers report higher levels of engagement than non-independent workers. The study also shows that when workers feel trusted, they are more likely to take greater ownership of their job and stay with a company for longer.
9. Seek your employees’ insights, ideas, and suggestions
Being praised for abilities other than the ones we are paid may help boost motivation.
So encourage staff members to use their creativity and provide suggestions for projects. You may also request their assistance with a problem you’re having and make use of their suggestions to make office improvements.
Request their input on concepts such as branding or a logo. It will enhance their self-esteem and demonstrate your appreciation for them.
Importantly, don’t just ask for feedback; demonstrate that you’ve heard what they have to say and take it into consideration. This way, employees will feel more valued and involved as a result of this.
10. Employee wellness programs should be made available
According to Jessica Pryce-Jones’ calculations in her latest book, Happiness At Work, the typical person will work for 90,000 hours in their lifetime: That is a substantial period of time.
Considering the number of hours on average spent by employees at the office and at the same time to be truly effective, they must maintain good health and be free from stress while at work.
However, employers are now becoming more aware of the advantages and necessity of promoting work-life balance.
Implementing workplace wellness programs that support mental/ physical health and overall well-being is one method to make employees find a balance between their professional and private lives.
Moreover, promoting employee well-being improves job satisfaction, minimizes stress, and lowers absenteeism and other workplace metrics. It may also help to reduce the additional costs associated with preventing staff sickness and subsequent absenteeism.
Last but not least, it may be one of the most effective non monetary incentives.
11. Make a mentorship offer to an employee
One of the valuable non monetary incentives may include offering dedicated and hardworking employee mentorship.
The top employees constantly seek to learn more from the company’s executives and gain valuable empowerment and experience.
So let your managers and executives share your knowledge and practical advice with your employees to help them succeed at work, and so they may bring more value to the company with their presence.
12. A lunch date
Sometimes, in order to show your employees how much you value their accomplishments and hard work, you should go above and beyond.
What could be better than sharing a meal with one of your employees that deserves sincere thanks from you for their continuous contribution?
So, you may have a delicious lunch and spend some time with your deserving employee.
Last but not least, it can be an excellent chance to receive feedback from your staff and deal with any problems they may be having.
Use BRAVO for Non Monetary Incentives.
As discussed earlier, one of the non monetary incentives, the experiential rewards, has become immensely popular recently.
Our rewards and recognition platform, BRAVO, comes with a functionality that resonates with experiential incentives: to allow employees to earn points for their achievements, which also keeps the thrill alive!
In addition, BRAVO comes with an extensive list of non monetary rewards to help motivate your employees while allowing you to perform efficient employee recognition that is also very budget-friendly.
Importantly, this rewards and recognition platform is extremely affordable.
So book its demo today for free!