5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
By Brad Smith
Money isn’t everything. No, really.
It can be tough for employers to hire and retain employees in today’s shifting marketplace, which is why many employers opt for spending top dollar to hire top talent.
But money isn’t the only thing that employees want. While financial motivation can attract certain talent to your organization, it can’t always keep it. In fact, non-monetary compensation is often a better way to attract employees and keep them satisfied in the long run.
Companies that incorporate non-monetary compensation strategies often see better revenue results, too.
Here’s what you need to know.
Does Non-Monetary Compensation Really Work?
Financial incentives have long been the accolade of choice for better employee motivation and engagement around the office.
While monetary rewards such as raises, bonuses, and special commissions have a track record of successfully improving the performance of the employees who receive them, they’re not the only reward that has been proven to see results.
Non-monetary rewards like praise and recognition can also bolster engagement levels.
In fact, one ResearchGate study found that non-monetary compensation was a better motivator for long-term engagement than monetary rewards. They showed that money, while effective, only motivated “for a short period of time.”
When it comes to value for dollar, long-term engagement can significantly impact a company’s bottom line.
Research shows that unmotivated workers can cost companies up to $300 billion or more in lost productivity each year. Add to this the hidden costs for MSPs, and you have even more of a reason to ensure that employees stay happy in the long run.
For many disengaged workers, non-monetary motivations, such as a simple “thank you” can be as important as a tiny bonus.
Many employees are also happy to return the praise for companies that treat them well.
For employers looking to keep employees happy, it’s important to develop non-monetary motivational policies that recognize employee efforts effectively.
But which non-monetary employee incentives work the best? Here are a few of the top options.
1. Recognition and Praise
Overall, employees just want to be valued for their work, time, and effort.
In one client employee satisfaction survey, 55% percent of the respondents said that praise and attention from their supervisor would make them feel cared for and valued in the workplace.
While the survey also indicated that money, benefits, and events like company lunches ranked high for motivation, recognition from a supervisor or manager ranked the highest.
Other studies on non-monetary employee recognition have revealed similar results, showing that recognition is vital to the well-being of any work environment.
Companies with defined recognition programs also seem to fare better than those with inconsistent recognition practices.
US Bank lists five steps for creating an effective employee recognition program:
- Establish a recognition team — Recruit employees who you have invested in and who want to promote engagement around the office.
- Identify positive behavior to reinforce — Recognition should come from positive behaviors that contribute to the company in some way.
- Set attainable goals for employees — …read more
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