Non-Monetary Rewards

Non-monetary rewards are more varied and unique than monetary rewards and offer major advantages. They help meet employees' needs for recognition, growth and responsibility and most can be relatively inexpensive. In the organisation, non-monetary rewards range from small merchandise rewards to certificates of appreciation. In general there are two broad types of non-monetary incentives: tangible and non-tangible or social incentives. Here we will talk about tangible non-monetary gifts.

The importance of tangible non-monetary incentives can be discussed by comparing them to monetary incentives. When people are asked what type of reward they want, cash may, on the surface, be preferred by everyone, but it may not really drive people to do beyond their basic job requirements. Money can prevent dissatisfaction with the job but does not necessarily motivate people. Tangible non-monetary incentives are as important as monetary incentives in the motivation of employees. This importance is attributable to various factors that can be stated as follows. Cash incentive is typically thought of as compensation, can be spent on everyday necessities (such as groceries, bills etc.) and gone. But non-monetary incentives such as free bus service, a ticket to a football game, discount on a store, a gift certificate or subscription to a magazine can be used to satisfy the "wants" and "interests" of employees. Most of the employees have interests outside the workplace. Offering the employees things that they value can make them feel that the organization cares about them as valuable human beings. They may contribute to create a positive work environment for the employees make them feel more motivated to work.

Tangible non-monetary incentives provide employees a tangible symbol of achievement and it becomes something physical to show off. Tangible nonmonetary incentives that are awarded as recognition of a good performance can often be shown to co-workers and friends as a trophy and there is no reason not to brag about them. On the other hand, it is unlikely that employees do the same thing with a cash incentive; socially it is not an acceptable way to seek peer recognition. Tangible non-monetary incentives provide lasting reminder of achievements and the efforts put to achieving it. The more symbolic an item is of the success, the more likely it is powerful in reminding the employee of why it was given.

My experience confirms that the following non-monetary goods are normally more motivating than their cash equivalents: rings or tie pins, office with a window, company sport/social events and vacation trips. They can be awarded as recognition to a good performance or any single contribution. This in turn has the potential to motivate employees without offering monetary incentives. It is also important to bear in mind that the basic monetary needs of subsistence must be adequately met with an employee's income before a non-monetary incentive can be effective.

The importance of non-monetary incentives in motivating the employees is supported by various studies, which verify that there is a strong link between non-cash incentives and improved job motivation. In time, monetary