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Switching to Non-monetary Rewards and Recognition

Several Reasons Why Non-monetary Rewards Are Better Than Monetary Ones
Friday, July 6, 2018

Employee Engagement

Most businesses try to take steps to recognize their excellent employees. It shows them they are valued, builds morale, and often results in better performance. However, the default mode of recognition for many companies is usually monetary rewards. This seems to be waning though, as many companies are beginning to realize that non-monetary recognitions are the way to go. In fact, a report has put the percentage of companies that use non-monetary rewards at 80%, but what about the remaining 20%? The major reason for this is that these businesses are unaware of the benefits of non-monetary rewards. Many of these companies also do not know how to implement non-monetary recognition for their employees.

Benefits of Non-monetary Rewards

There are several reasons why non-monetary rewards are better than monetary ones. Some of them are explained below:

Memory Value: Employees are more likely to remember non-monetary recognition when compared to monetary rewards. One reason for this is the separable nature of non-monetary rewards. People often plan their finances by designating money to fixed and variable expenses, and other categories. The odds are employees will take monetary rewards and include them as part of their regular salary when planning. The monetary rewards then lose their value because they are not distinct from any other of the employee’s money and are being used for regular expenses. However, with non-monetary rewards, an experience is created. It could be a gift card to a restaurant, or it could be an all-expenses paid trip. With these, employees are going to separate them from their regular possessions and the memory value will be long-lasting.

Cost: The cost of monetary rewards far outweighs that of non-monetary rewards. The biggest cause of this is that companies do not know how to weigh certain rewards. If an employee was offered $10,000 as a reward, surely a manager has to be offered more, even if he did a less impactful thing than the employee. This inability to properly weigh rewards based on impact and the constant shift in perceived value makes monetary rewards more expensive and difficult to manage.

Flexibility: Non-monetary rewards are more flexible than cash rewards. If employees regularly complain about gas being expensive, a possible non-monetary reward can be a gas station gift card. If people are complaining about muscle stiffness due to sitting all day, you could send them to a spa for any service they desire. Also, non-monetary rewards can be tweaked to be aligned with company culture. The ability to constantly develop and design new non-monetary rewards keeps it fun for the entire organization. The element of surprise is also better when compared to cash rewards, where employees know for sure what they are getting beforehand.

Social Reinforcement: Social validation is important, especially in the workplace. This is one of the actual reasons for giving employees rewards in the first place. With non-monetary rewards, employees are likely to get that peer recognition. You will never hear an employee ask another about the $10,000 dollars the company gave him. However, a sponsored trip will forever be a topic of discussion. Photos will live for years on Facebook, and it will be the topic of lunch room chatter.

Understanding the benefits of non-monetary rewards is one thing, however, implementing them, is another. We can help you manage the creation and deployment of your non-monetary rewards program. Our catalogue of rewards includes multiple items to choose from. If you are looking to implement a non-monetary reward program in your business, then Online rewards is the way to go.

Key Influencers Inside Your Company

And How They Impact Your Culture
Thursday, June 28, 2018

Employee Recognition

Most people spend at least 40 hours at their workplace each week. Normally, they want this time to be meaningful and productive, but we all know this isn’t always the case. You probably know from your own experience that the quality of workplace environment impacts everything—from the time you get to work each day to the annual outputs.

What factors impact the working environment quality? Even the most basic organizational principles can be violated when a company lacks one important ingredient: A positive company culture.

Technically, every company has a culture. It can be defined as a set of values, relationships, and behavioral patterns that are common to all company employees. These elements are not always in writing, but they always have a significant impact on overall performance and progress.

The real question is how to build a culture that will make a company the best version of itself.

Mission vs. Engagement

The essential elements of organizational culture include values, mission, goals, rules of conduct, symbols, traditions and rituals, and company heroes.

The reality is that a company’s mission is often written text, and completely separate from the people and processes employees interact with on a daily basis.

For many people, a mission will always be a slogan from a corporate booklet, because they never lived through the moments that made them feel like they really belong to the corporate community. Or, what's worse, were rejected when they tried to show a little initiative. In other words, a lot of workers are entirely disengaged.

Our Definition of Positive Corporate Culture

After we have identified the critical factor that influences employees' attitude towards their work (e.g., engagement), we are ready to formulate the key features of a corporate culture that positively affects morale and motivation.

A positive corporate culture creates an environment where every employee feels appreciated, while toxic individuals can be easily detected so that they do not negatively impact the culture, regardless of their position.

A positive corporate environment should be perceived as safe and friendly. While challenging, it is possible for companies to achieve this without the loss of healthy competition within the workplace.

Friend or Foe

There is no "one-size-fits-all" solution for corporate culture creation or "reinvention". The exact steps depend on what a company has already established, the type of industry, specificities of products and services, and operational processes.

However, each company has three groups of influencers that will make or break your engagement efforts:

  • Management and Executive Leadership
  • Back office
  • "Rockstars"

Let’s take look on how representatives of these groups can impact your efforts.

Management and Executive Leadership

You’ve probably heard the phrase, “People leave managers, not companies.” At least part of that is true, but even the most good-hearted and professional middle manager cannot compensate for overall organizational flaws in the long run. That is something executive leadership needs to be fully invested in changing.

Managers, however, can deliver a desired corporate culture through:

  • Communication style and tools;
  • Procedures of troubleshooting;
  • Communication channels for discussing new ideas and improvements;
  • A sophisticated system of rewards and recognition. Modern IT solutions allow managers to encourage the desired behavior and achievements with ease.

Back Office

People from HR, legal, accounting and other supporting teams are as important as managers because they are mediators between company rules and workers. How do they retranslate the company values and general attitude towards its employees? Through:

  • Procedures for personnel training and education
  • The manner in which the formal procedures are handled
  • Stories and other content distributed within the internal communication channels
  • Procedures of troubleshooting

Everyday "Rockstars"

Informal leaders might have a huge impact on other employees. Your primary task is to support the leadership of the workers that achieve valuable results and make them visible throughout the company. How do they make their contribution to the development of a positive corporate culture? Through:

  • Initiating timely dialogues on the pressing questions without fear
  • Sharing their working experience and observations
  • Recognizing their peers for doing something that corresponds with company values

These Rockstars should be highlighted and spotlighted in a public manner, which can be achieved through social recognition technology.

These three groups need to be monitored and recognized for the compliance with company standards and values in a personal and timely manner. You don’t have to wait for the end of the year to recognize people for social or mental efforts.

Is it all worth it?

All these considerations might seem complicated on the conceptual level. But a positive company culture is an advantage that cannot be directly copied by your competitors, making it an invaluable organizational change to invest in.

The latest IT solutions for employee rewards and recognition can be implemented from scratch or integrated into existing practices. Modern employee recognition programs have sophisticated admin tools and dashboards, allowing you to measure and reward actions that could bring your company culture to the desired ideal. These solutions deliver tangible ROI and help companies get to the next level of HR management.

If you have any questions about how we help companies achieve these cultural goals, contact us directly by filling out the form below.

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