Categories of Non-Financial Rewards in the Workplace
According to Armstrong (2017), non-financial rewards are incentives given to employees that are not related to monetary compensation. These rewards can take various forms and are designed to motivate, engage, and retain employees by recognizing and reinforcing positive behaviors and achievements.
These rewards can be categorized into several categories:
- Recognition: Non-financial rewards in the form of recognition refer to acknowledging and appreciating an employee’s contributions or achievements. This can include verbal or written praise, public recognition, or awards.
- Achievement: Rewards based on achievement recognize an employee’s successful completion of a task or meeting a goal. These rewards can include a promotion, opportunities to work on challenging projects, or being given additional responsibilities.
- Personal Growth: Non-financial rewards that focus on personal growth are aimed at helping employees develop their skills and abilities. This can include training and development opportunities, mentoring, and coaching.
- Learning and Development Opportunities: These rewards offer employees opportunities to learn new skills or knowledge that can be applied to their job or career development. This can include attendance at conferences or workshops, access to online learning resources, or on-the-job training.
- Enhancement of Well-being: Non-financial rewards that focus on well-being aim to improve employees’ physical, emotional, or social well-being. This can include wellness programs, flexible work arrangements, or employee assistance programs.
Non-financial rewards can be either extrinsic or intrinsic. Extrinsic rewards are external rewards, such as verbal encouragement from a manager, while intrinsic rewards are internal rewards that come from the job itself, such as the content of the work or the sense of accomplishment that comes from completing a challenging project.
Overall, non-financial rewards are an important part of a comprehensive employee recognition and reward system. They help to improve employee satisfaction and engagement, increase motivation, and create a positive workplace culture.