Rewards work in organizations because they add value to the work being done and the performance of your employees—value that may not have been clearly communicated before.
People crave rewards. Employees want to see the fruits of their labor, but may not have the perspective to see how valuable their contributions are. Rewards deliver awareness to specific, tangible aspects of performance, so employees know how well they’re doing.
In fact, one third of employees say they feel they do a better job and are more engaged when they know they will be rewarded for their efforts.
A reward can add value for an employee in two ways:
- Personal Effort Value: A reward is valuable to an employee when they spend time and effort working towards a goal.
- Social Trophy Value: A reward is valuable to an employee when it provides visible, tangible recognition in front of their peers.
However, there is one kind of reward in particular that outshines the rest when it comes to adding value to your company and exciting your employees: non-cash rewards.
Non-Cash Rewards Have A Bigger Impact
Rewards can come in all shapes and sizes, but generally they fall into two categories: cash and non-cash rewards.
Cash rewards come most frequently in the form of bonuses, and they are usually what employers think employees want most. However, cash is not what employees always prefer. In many cases, cash is viewed as compensation, the baseline component for an ongoing business arrangement between the firm and the employee.
Conversely, non-cash rewards are viewed as vehicles of celebration. These rewards are fun, memorable, and more easily discussed socially than cash, and they generate an enthusiasm cash can’t deliver – among employees, executives, and depending on the reward, the employees’ families.
The social impact from non-cash rewards has a direct impact on culture – visible celebration and rewards impact the sense of friendly competition, team pride, and community within a firm.
The next time you’re looking for rewards for your company or team, consider the impact non-cash rewards will have on your population. Not only will they be excited, you’ll also see the positive effect throughout your company.