For companies striving to enhance the employee experience and actively seeking methods to maximise the potential of their workforce, non-financial rewards offer a quick-win injection of job satisfaction.
While cash bonuses and other financial employee incentives have traditionally hogged the limelight, businesses are increasingly exploring diverse avenues to demonstrate genuine appreciation to their teams through compelling non-monetary incentives.
Within this blog, we'll explore a spectrum of innovative non-financial reward options that extend beyond the realm of typical compensation and how they can positively influence an individual’s contribution within their role.
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What are the different types of non-financial rewards for employees?
1. Volunteer work
In the ever-evolving landscape of work, employees, especially those belonging to Generation Z, yearn for something more profound than just a job. According to insights from Sage, 53% of those under 35 are eager to give more of their time to volunteering, and this enthusiasm is even higher amongst the 18-24 age bracket, with a substantial 60% expressing a keen interest in contributing to meaningful causes, as shared in a report by City Philanthropy.
Many employees now seek businesses that recognise their desire to create a positive impact and resonate with their values. Volunteering stands out as a powerful means to fulfil this purpose. It's not just about clocking in and out every day, but contributing to a collective cause that makes a genuine difference, which creates an environment that is both engaging and meaningful.
Participating in volunteer work is about people coming together, transcending the boundaries of their job titles, and engaging with the community in a way that brings the team closer to one another and the world around them. As employees invest their time in causes they are passionate about, they find themselves acquiring a diverse set of skills and in turn, become more well-rounded individuals.
2. Professional development opportunities
In the pursuit of building a robust workforce, organisations are recognising the evolving aspirations of young professionals. This goes beyond a mere paycheck; there's a shared desire for continuous learning, personal development, and professional growth.
Companies that grasp this shift strategically offer employees opportunities to advance in their careers through training workshops and courses.
Furthermore, businesses embracing a culture of continuous learning find themselves in a favourable position to attract and retain top talent. In a competitive landscape, professionals are drawn to organisations that not only understand their growth aspirations but actively support their journey toward expertise in their respective domains.
3. One-on-one with the boss
One-on-one meetings allow employees to engage in focused, personalised discussions with their supervisors. This setting allows for a more profound understanding of employees' specific needs, concerns, and career aspirations. Moreover, these meetings are instrumental in providing constructive feedback on performance and accomplishments, contributing significantly to morale.
During these sessions, employees have the chance to articulate their career goals, and supervisors play a pivotal role in offering guidance on the strategies and steps needed to attain those objectives.
A few top tips for effective one-on-one meetings:
- Regularly schedule: Set a consistent schedule for these meetings, whether it's weekly, bi-weekly, or monthly, so that employees can anticipate and prepare for discussions.
- Agenda: Create an agenda for each meeting to ensure that important topics are covered. This could include updates on projects, goal progress, challenges, and career development discussions.
- Goal Setting: Use these meetings to set and review goals. Discuss progress, adjust objectives as needed, and establish new targets.
- Recognition and appreciation: Take time to acknowledge and appreciate the employee's efforts (no matter how small).
- Problem-solving: If the employee has informed you of any challenges or issues, use the meeting as an opportunity to collaborate on finding solutions, which reinforces the idea of the employer being a supportive partner in the employee's success.
4. Birthday off
Offering employees a day off on their birthday, outside of their annual leave, is more than just a policy; it's a compassionate and employee-centric initiative that significantly boosts workplace morale. This gesture has the potential to create a meaningful impact on how employees perceive their employer and their role, emphasising that work isn’t just about the mundane 9-5 routine. Instead, it underscores the company's acknowledgement that personal moments truly matter.
This practice is a testament to how the business perceives its employees—not just as a single cog in the company machine, but as individuals with their own needs and wants. It's a way of saying, "we value you, not only for the work you do but for the person you are."
5. Social events
Social events and celebratory occasions craft shared experiences and a collective joy within the broader team. Whether it's marking project milestones or honouring work anniversaries, these events offer more than just a break from the daily grind. They create a relaxed environment where colleagues can strengthen their connections and bask in the shared pride of the team's achievements.
Similarly, team-building activities take a strategic approach to reinforce the ties among team members, whether it be through retreats, outdoor adventures, or collaborative workshops.
6. Staff discount schemes
An employee discount scheme is a benefit many employers offer their staff, which allows them to stretch their salary further. Here, they can purchase products or services from affiliated businesses at a reduced rate. It's a way to enhance the overall compensation package by providing employees with non-financial perks beyond their standard salary.
Some companies extend these discounts to external partnerships, offering employees reduced prices on various offerings like retail, travel, and entertainment. Such programmes come in different forms, ranging from fixed percentage discounts to special promotions and exclusive offers.
7. Childcare support
Providing childcare support for staff is a valuable employee benefit that acknowledges the challenges faced by many working parents as they navigate the demands of both their professional and family responsibilities.
Here are some of the ways that businesses can provide this extremely beneficial non-financial reward to their staff:
- On-site childcare facilities: Creating on-site childcare facilities is a strategic choice made by certain (typically larger) companies, where they set up childcare centres either within or in close proximity to their workplace. This offers convenience for parents, providing them the opportunity to drop off and pick up their children without the need for extensive travel.
- Childcare subsidies: Employers may provide financial assistance or subsidies to help cover the costs of external childcare services, which can ease the financial burden on parents and enable them to access quality childcare options.
- Flexible working arrangements: Offering flexible working allows parents to better manage their work and childcare responsibilities. This could involve adjusting start and end times, implementing compressed workweeks, or allowing remote working when possible.
- Parental leave policies: Having well-defined parental leave policies is crucial for creating a supportive environment for new parents. These policies should not only cover maternity leave but also include provisions for paternity leave and extended leave options.
8. Free meals and snacks
Offering free meals and snacks to employees ensures convenient access to nutritious and energising options throughout the workday. This both positively influences their physical health and enhances focus. What’s more, this non-monetary reward also eliminates the necessity for employees to venture off-site for food, promoting time efficiency and optimising break times - both of which contribute to a healthier work-life balance.
Looking at it from a financial standpoint, the availability of free meals translates to cost savings for employees who would otherwise be forced to spend money on daily meals during their working hours.
9. Employee assistance programmes (EAPS)
Employee Assistance Programmes (EAPs) are employer-sponsored initiatives designed to prioritise the wellbeing of employees.
These programmes play a crucial role in offering a range of services and resources to help employees navigate personal or work-related challenges that may impact their mental health.
The overarching goal of EAPs is to address a variety of issues, including stress, substance abuse, financial challenges, relationship problems, and more. However, the key is the assurance of confidentiality, creating a safe space for employees to seek assistance without fear of personal issues being disclosed to their employer.
One significant component of EAPs is the provision of counselling services. Employees can access professional counsellors or therapists confidentially, either in person, over the phone, or through online platforms. These sessions offer individuals a supportive space to address and manage their challenges. Additionally, EAPs extend support by providing immediate assistance to help employees cope with traumatic workplace events or personal emergencies.
10. Financial wellbeing support
Offering financial wellbeing support with an on-call advisor is a valuable employee benefit that underscores an organisation's commitment to the financial health of its workforce.
Given the undeniable link between money and mental health, especially amid the current cost-of-living crisis, employers can significantly ease the burden of money worries through this this free service.
These systems will typically have financial advisors available to employees, allowing them to seek guidance and assistance with various aspects of their financial lives. Advisors can work with employees to create personalised financial plans based on their unique goals, priorities, and circumstances. This may cover topics such as budgeting, investments, retirement planning and debt management to help employees make informed decisions about their money.
11. Subsidised gym membership
Subsidised gym memberships reflects an employer's commitment to the wellbeing of their employees. By contributing a portion of the cost or offering discounts for access to fitness facilities and wellness programmes, this incentive serves as a proactive measure to encourage a healthier lifestyle among the workforce.
The primary goal is to promote physical health and enhance overall wellbeing. This is aligned with the understanding that a healthy employee is likely to be more engaged, productive and satisfied in the workplace.
By making fitness resources more accessible, employers facilitate regular exercise, which is known to contribute to improved cardiovascular health, reduced stress levels and increased energy. This, in turn, can lead to fewer sick days and a workforce that is more resilient and capable of meeting the demands of their roles.
Moreover, subsidised gym memberships can contribute to heightened employee retention by portraying the company as one that prioritises employee health. This positioning not only enhances the organisation's appeal but also aids in attracting top talent, particularly among individuals who are keen to maintain a healthy work-life balance.
FAQS
Monetary vs non-monetary rewards: What's the difference?
Monetary and non-monetary rewards are two different types of incentives that organisations use to motivate and recognise their employees.
Here's a breakdown of the key differences between the two:
Monetary rewards:
Monetary rewards provide employees with concrete financial offerings, such as bonuses, profit-sharing and stock options, for example. These rewards have a clear and measurable monetary value, making them straightforward to quantify. Employees can easily interpret.
Non-monetary rewards:
Non-monetary rewards emphasise intangible benefits by acknowledging employees' efforts in meaningful ways. This approach encompasses elements that contribute to job satisfaction and overall wellbeing, such as formal recognition, awards, flexibility in work hours, opportunities for training and career development, the option to take birthdays off, and childcare support.
What is the role of non-monetary incentives in motivating employees?
Non-monetary incentives are key for motivating employees and enhancing job satisfaction. While some employees may prefer being financially compensated, others appreciate rewards relating to their wellbeing, goals or interests.
Financial incentives are ultimately a one-size-fits-all approach, while non-monetary rewards can be tailored to individual preferences.
Options include flexible work schedules, financial support, childcare support, additional annual leave and more. This reinforces a sense of appreciation for the workforce, as well as boosts employee self-esteem and morale. Opportunities for skill development and career advancement also demonstrate an organisation's commitment to employee growth. This, in turn, can foster a sense of loyalty amongst the team, as they feel that they are being fully-invested in on a personal and professional level.
What are the key benefits of non-financial rewards?
Non-financial rewards are a meaningful way to assist in creating a work environment where people find fulfilment in their roles and the company they’re employed by. These include the ability to invest in individual employee values, as well as motivating and retaining top talent, amongst others, which include:
Investing in employee values
In today's job market, people searching for employment are approaching potential employers with a new perspective. It's not just about the job description anymore.
Company culture, values and goals are now critical considerations for those seeking a job. Individuals are on the lookout for companies that see them as more than just employees but as unique individuals with a life outside of work. While salary is still important, a growing number of job seekers are looking for companies that go above and beyond to enrich their personal and professional growth.
Sustainable motivators
Non-monetary incentives have a profound impact on creating a workplace where employees are deeply connected to their roles. When individuals feel genuinely valued and supported, their commitment to their current positions becomes more resilient.
Now, let's contrast this with monetary rewards. While they certainly motivate to hit certain targets, they often act as a temporary solution, addressing immediate concerns without delving into the core factors that contribute to long-term employee satisfaction and loyalty.
Retaining the best employees
While salary plays a key role in retaining top talent, it’s not the only reason why employees choose to stick around. Only 12% of employees desire a higher paycheck, while the main drivers are positive company culture and employee engagement - which non-monetary incentives can support. After all, the happier your staff are, the more likely they’ll want to remain in their positions.
Personalised to suit the individual
The beauty of non-monetary rewards lies in their capacity to be finely tuned to align with the unique interests and needs of each employee.
For example…
It could involve tailoring professional development opportunities based on an employee's specific career goals and skill set. Let’s say someone is keen on honing their project management skills, the organisation might offer a specialised training programme in that area. Or, if an employee is passionate about health and wellness, the company may grant a gym membership or access to mental health resources.
More budget-friendly
From a financial perspective, many non-monetary incentives can be far cheaper than cash bonuses - ideal for those with restricted budgets.
For instance, recognition programmes - such as employee of the month awards or personalised thank-you notes - come at a minimal cost but carry significant value in terms of motivation and morale. Offering flexible work hours, remote work options, or additional time off can be powerful incentives that contribute to employee satisfaction without impacting the bottom line in the same way as cash bonuses. While training and professional development opportunities can be structured cost-effectively through online courses, workshops or mentorship programmes.
Watch a 3-min demo of our incentive portal
See how our incentive platform can ensure your employees bring their A-game.
Create a non-financial rewards package today!
Non-monetary incentives serve as strategic tools for recognising and rewarding exceptional employee performance. While these incentives play a pivotal role in enhancing job satisfaction and motivation, it's essential to draw up a well-rounded compensation package that caters to the entire workforce.
A fair compensation structure lays the foundation for business success. It provides financial stability and meets the basic needs of employees. While non-financial incentives offer additional layers of motivation, satisfaction, fun and recognition. This dual approach to meeting employee desires creates a comprehensive reward package which fosters a workplace culture where individuals are motivated, engaged and empowered to achieve collective success.
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