Non-Monetary Ways to Recognize Employees
While money and earning an income remain the single largest factors most people prioritize on the job market, it's important for employers in businesses of all sizes and industries to realize that monetary motivations are not the only ones out there for prospective employees. There are also many forms of non-monetary incentives that many people prioritize in the jobs they look for, and some of these surround rewards or recognition for strong performance.
At Integrated Companies, we're here to help clients around Utah with a wide range of employer HR services, from employer insurance and risk management areas to payroll services, benefits and more. Here's a primer on some of the possible limits of monetary rewards for employees, plus some ways employers can boost their non-monetary recognition system to increase both employee happiness and long-term retention.
Why Monetary Rewards Have Limits
To be clear, no one is trying to minimize the importance of a strong salary and other financial job benefits. In fact, offering competitive wages and other financial perks are vital in many situations for both employee retention and overall business success. However, there are some limitations to relying solely on monetary incentives to motivate employees.
One of the main reasons for this is that money can only serve as a temporary motivator. Employees who receive a raise or bonus may be initially motivated by the extra income, but this motivation can quickly fade as they become accustomed to the new amount. Additionally, money does not necessarily equate to job satisfaction or fulfillment – if an employee is unhappy with their duties or work environment, a raise or bonus may not be enough to keep them satisfied in the long term.
The Power of Non-Monetary Incentives
On the other hand, non-monetary incentives have the potential to create long-lasting motivation and job satisfaction. These types of incentives can range from simple verbal recognition for a job well done to more tangible rewards such as extra time off or gift cards.
Non-monetary incentives also have the added benefit of being more cost-effective for employers. While monetary rewards require a direct expense, many non-monetary incentives can be provided at little to no cost to the company.
Our next few sections will go over good examples of these kinds of rewards to consider for employees beyond the monetary sphere alone.
Direct Feedback and Coaching
For many employees, building skills and developing their career are just as important as making money. Investing in your employee's growth and development through direct feedback and coaching can be a powerful non-monetary incentive. This shows employees that their employer is invested in their success and wants to see them grow and succeed within the company.
For example, maybe you offer a weekly or monthly check-in with your employees to provide feedback and set goals. You can also offer occasional coaching sessions or bring in outside experts to lead workshops on relevant topics.
Personal Attention and Acknowledgement
Another important non-monetary incentive is personal attention and acknowledgement. This includes taking the time to get to know your employees, their strengths and areas for improvement, and showing appreciation for their hard work.
This can be done through simple gestures like remembering important events in their lives or recognizing them publicly for a job well done. Additionally, offering opportunities for employees to provide input on projects or decisions can also make them feel valued and engaged in the company.
Milestone or Benchmark Celebrations
Anytime your company reaches a milestone or achieves a significant goal, it's important to celebrate and recognize the employees who helped make it happen. This not only shows appreciation for their hard work but also creates a sense of camaraderie and teamwork within the workplace.
This also extends to individual employee milestones or celebrations. These can range from work anniversaries and promotions to personal achievements such as buying a new home or completing a marathon. Whatever the occasion may be, taking the time to acknowledge and celebrate these milestones can go a long way in boosting employee morale.
Continued Avenues to Advancement
While this area certainly has a direct financial connection associated with it, it's still important to mention because it goes beyond simply offering a raise or bonus. Employees want to feel like they have the opportunity to advance and grow within their company, whether that means taking on new responsibilities, moving up in the company hierarchy, or pursuing additional education and training.
Employers can create non-monetary incentives by providing employees with a clear path for advancement and supporting their goals for career growth. This can include cross-training opportunities, mentorship programs, or even tuition reimbursement for further education.
In summary, while monetary incentives do play a significant role in attracting and retaining top talent, they are not the only factor to consider. Non-monetary incentives have the potential to create longer-lasting motivation and job satisfaction for employees. By incorporating these types of rewards into your company's culture, you can create a more engaged and motivated workforce that will contribute to the success of your business.
At Integrated Companies, we understand the importance of both monetary and non-monetary incentives for employee satisfaction. That's why we offer a variety of employer solutions to help you create a well-rounded benefits package that meets the needs and priorities of your Utah employees. Contact us today to learn more about our services and how we can support your business goals.