Organizations are now increasingly waking up to the fact that non-monetary awards can often prove to be more effective than cash rewards in motivating and engaging employees. This article explores the best non-monetary awards for employee recognition.
There is little doubt that most individuals would like extra cash to incentivize their efforts and achievements.
However, they also understand that such financial benefits are temporary and not a meaningful recognition of their contribution towards organizational growth.
Hence, employees often prefer non-financial recognition, which can be a more interesting, memorable and effective way for organizations to acknowledge and appreciate high-performing employees.
In addition to ensuring greater employee satisfaction, such recognition can prove advantageous in the following ways:
A study performed by the Incentive Research Federation for the Incentive Marketing Association has revealed that 65% of employees prefer non-monetary incentives over monetary rewards.
A lunch with the manager, a trip to the hill station, or an extra day off is likely to prove more impactful than any additional amount of money that the employees might not even remember what they spent on.
To benefit from non-monetary recognition, organizations need to do some research on the various options available.
While there are many ideas for non-monetary awards, not all would meet the recognition needs of an organization.
So, here are the ten best non-monetary award ideas that can be implemented by organizations irrespective of their size and operating model:
1. Flexible Work Timing/ Time-off
2. Extra Paid Leave
2. Extra Paid Leave
4. Use a Brag Board
5. Premium/ Reserved Parking
6. Choice of Projects/ Assignments
7. Special/ Cross-functional Initiatives
8. Training and Up-skilling
9. Invite Family to Office
10. Coffee/ Lunch with CEO
Most employees today strive to attain a work-life balance, hence providing them with the freedom to work flexible hours helps them to fulfill this objective.
This can be one of the most satisfactory ideas for employee recognition.
Providing employees with additional paid-off days can enhance their happiness significantly.
Spending more quality time with family and friends can enable them to relax and keep themselves motivated.
Rather than sending standard recognition emails, handwritten letters of appreciation from supervisors or leaders can be more effective.
It helps the employees feel valued and gives them a sense of belonging due to the personal touch.
Set up a board in the workplace where co-workers can leave short notes of appreciation for a specific duration.
Being recognized by peers can prove to be a great motivator.
Providing premium or reserved parking at the office for a limited period can be a good reward for high-performing employees.
Such a privilege reminds the employee daily that the organization acknowledges and appreciates their contribution.
Another effective way to recognize the achievements of employees is to allow them to choose their next project.
In addition to making the employees feel genuinely appreciated, it strengthens their commitment to the organization.
Giving high-performing employees opportunities to participate in special or cross-functional initiatives could be another effective way of recognition.
This motivates the employees and helps them acquire additional skills and exposure to the organization.
To grow in their careers, employees need to upgrade their skills constantly.
Hence, opportunities for skill development such as training programs or coaching can be an effective method of recognition.
One great way to recognize employees and build stronger emotional connections is to invite their families to the office to hear about their achievements and contributions from their supervisors and co-workers.
This can also be combined with lunch with the supervisor and team at the office cafeteria.
Also, employees often draw inspiration from the CEO and senior management in the organization and consider them as role models.
Hence, arranging a one-on-one meeting or meal with this top executive can prove extremely gratifying and rewarding for the employee.
Our suggestions on the best non-monetary awards can provide a cost-effective way for organizations to assure employees that they are truly valued and appreciated for their hard work and contribution. This, in turn, can enhance their sense of belonging and loyalty.
Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of corporate and entrepreneurship experience. In the past, Sagar has worked in leadership roles at companies such as Genpact, Infosys, and ICICI Bank. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn
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