Employee reward program is not a new idea; they have been around in all kinds of organizations for years.
A number of research studies show that employee appreciation can boost employee motivation, morale, engagement and productivity.
If you’re seeking an engaged, passionate, happier and loyal workforce, it’s crucial to give your employees the respect and recognition that they deserve.
However, before you begin crafting a rewards and recognition plan, you need to determine the type of rewards that will work best for your organization. In other words, should you provide monetary or non-monetary rewards at the workplace?
Read on to learn the pros and cons of monetary and non-monetary rewards:
Simply put, monetary rewards are financial rewards provided to employees for meeting their goals. This may include cash awards, bonuses, commission, gift cards, and more.
Money is an effective motivator for improving employee performance. Let’s admit it, who doesn’t love cash? Apart from covering the bills, monetary rewards are mostly tied to an employee’s performance. As a result, monetary rewards properly reflect the contribution of an employee towards the organization, while employees love them because they are practical and useful.
That being said, cash isn’t always king. Sometimes, choosing non-monetary rewards proves to be a better option for an organization, especially if it’s dealing with a tight budget.
You might find this surprising, but money is not as important as you might think. In fact, non-monetary factors, such as job satisfaction, a positive working environment and fringe benefits provide more benefits to organizations.
This is primarily because non-monetary rewards focus on building an emotional connection with employees. Providing the right non-monetary rewards can help enhance employee engagement, loyalty and job performance.
There are a number of non-monetary rewards that you could offer to your employees. These include flexible timings, insurance (health and life), leaves, staff training or any non-cash reward.
The last word
Although you may have great ideas for the type of rewards you would like to offer employees, you might want to get their feedback first. Allow them to give their feedback and suggestions on the incentives they want.
In addition, make sure your employee recognition program meets your company’s strategic goals, objectives and corporate culture.
Employee recognition programs are a great way to show gratitude and appreciation to the most important assets of an organization.
Designing an employee rewards and benefits program can be a challenging task. To make your life easier, connect with JS Benefits Group – a leading employee benefits and wellness consulting company offering complete solutions to organizations in the Mid-Atlantic region.
With more than 25 years experience, JS Benefits Group provides tailor-made employee benefits and wellness programs for all kinds of organizations.
Get in touch with JS Benefits Group now to find out more information about our services.