5 Types of Non-Monetary Rewards to Motivate Your Employees

Non-Monetary Rewards are as important as Monetary rewards. In fact, sometimes they can be even more important as they give employees a sense of self-actualization as they feel more valued.

A company’s success is often determined by its employees, yet many companies fail to reward their staff with the incentives and benefits they deserve. As a result, many are left feeling unappreciated and unmotivated, which ultimately leads to a loss of productivity, low morale, and even high turnover rates.

Over the past few years, the so-called "Great Resignation" has affected all kinds of organizations from small, local companies to huge, multinational corporations. Unsurprisingly, money is not the only thing that motivates people to work for a living. And it’s certainly not the only reason why even the best employees quit their jobs.

What are non-monetary incentives?

Non-monetary incentives are any rewards or benefits given to employees that are not based on money. These could include any form of non-financial rewards such as recognition, special events, promotions, discounts, or educational opportunities.

What are the benefits of non-monetary incentives?

Non-monetary incentives can have a dramatic effect on employee performance. They provide benefits such as increased efficiency, higher productivity, and greater motivation for your employees.

Here are the top three reasons why you should start offering non-monetary incentives to your staff:

Create a culture of continuous improvement

Non-monetary incentives can create a culture of continuous improvement among your staff by allowing them to receive recognition and rewards that are directly tied to their efforts. This will help your employees develop an intrinsic motivation to continue working hard and be successful. It will also give them the encouragement they need to excel in their roles and develop new skills.

Build stronger relationships with your employees

The key to a successful business is how well you connect with your employees. It's much easier to motivate staff when they feel a connection with the company on both a personal and professional level. Non-monetary incentives can help to build a stronger relationship with your employees by showing that you value them as individuals and that you want to go the extra mile to make them feel appreciated.

Reduce employee turnover and recruitment costs

In the long term, non-monetary incentives can reduce turnover and recruitment costs. Your employees will be more likely to stay if they feel valued and are being rewarded for their hard work. Non-monetary incentives can also help to save money by reducing the amount of time it takes to fill open positions and hire qualified candidates.

5 of the best non-monetary incentives for employees

If you’re thinking about giving non-monetary incentives to your employees, here are some tips on what they should be and how to deliver them.

1. Public recognition and praise

One of the best types of non-monetary incentives that you can give your employees is public recognition and praise. It builds a sense of community and promotes feelings of collaboration among your team. Make sure that all of your employees know when they’ve performed a great job, when they’ve gone above and beyond or when they’ve made a positive impact on others. This can boost morale and create a stronger team.

2. Flexibility at work

Another type of non-monetary incentive that is ideal for employee retention is flexibility at work. If you allow your employees to work from home or if you give them the option to take days off, it will promote greater loyalty because they won’t feel like they’re being micromanaged. In addition, it will enable them to achieve a balance between their personal and professional lives.

3. Health insurance

Health insurance benefits are one of the best ways that you can retain your top employees. Consider getting an all-inclusive plan that includes medical, vision, and dental care so that all of your employees have access to preventative healthcare. Adding family coverage and life insurance to sweeten the deal will also help ensure that your employees and their loved ones are secure, financially sound, and healthy. By offering comprehensive health insurance, you’ll be making your employees happier and more likely to stick around.

4. Physical rewards

When it comes to rewarding employees, money isn’t necessarily the only thing that should matter. Consider giving your employees physical rewards instead. For example, if they’re having a hard time with something that’s causing them stress, provide them with a massage or give them a day off to recharge. You could also consider allowing employees to take part in sports teams or fitness programs. Adding a fun element to your company culture will ensure that your employees are happy and productive.

5. Growth or learning opportunities

Finally, remember that your employees are your future leaders. If you want to ensure that your workforce has an advantage over other companies, think about offering your employees growth or learning opportunities. Whether that means providing them with new training or giving them the opportunity to grow within the company, your employees will appreciate the fact that you care about their career development.

The bottom line

Employees who feel valued are more likely to stay with you, work harder and be more productive. As a result, when you start caring for your employees, you’ll be able to reap the benefits of increased productivity and higher retention rates. If you want to increase employee retention, make sure they genuinely feel like they’re being cared for - even if it means making some major changes to your workplace.