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Bonuses, stock options, and generous paid time off are flashy perks that make employees feel valued. Although money talks, incentive-based compensation isn’t the only way you can motivate your workforce to deliver their best effort.
Nonmonetary benefits and incentives nurture a healthy and supportive company culture. Flexible work arrangements, regular constructive feedback, and opportunities to give back to the community create a sense of belonging and connection, boosting engagement and teamwork.
Are you ready to learn how to reward employees without money? We’ll explore 10 incentives for employees to include in your compensation package and explain why they’re crucial to building a satisfied workforce.
What are non-monetary incentives?
Nonmonetary incentives are rewards or job perks offered to employees that don’t involve cash or financial compensation.
Employers aren’t required to offer these types of benefits. However, comprehensive nonmonetary benefits enhance employees’ overall job satisfaction, work-life balance, and well-being.
Reward good work with nonmonetary compensation, such as wellness programs, public recognition, and professional development opportunities, to let employees know their contributions and hard work are seen and appreciated. Benefits that emphasize personal growth and work-life balance reflect a work environment that values employees as individuals rather than numbers on a payroll sheet. This approach to team building boosts employee engagement, supports retention, and motivates workers to give back to their organization.
Nonmonetary benefits differ from monetary benefits (although you’ll still need to budget for them). Monetary benefits involve direct financial compensation, such as bonuses, commissions, or a 401(k). Unlike monetary benefits, nonmonetary benefits support workers with rewards and recognition that connect employees to the larger company culture.
A robust total rewards strategy that includes both types of employee benefits will demonstrate appreciation for employees’ efforts and contribute to their overall motivation in distinct but complementary ways.
What are the benefits of non-monetary incentives?
Monetary incentives are simple—an employee hits an established milestone, they’re rewarded with cash or stock options, and everyone is happy. The benefits of wellness programs, volunteer time off, and other nonmonetary compensation are more nuanced.
Here’s how noncash incentives can boost your organization.
- Recognize employees immediately: Cash bonuses, commissions, and raises won’t hit an employee’s bank account until the next pay period. Nonmonetary benefits can happen in the moment. Public recognition, a LinkedIn recommendation, or some company swag acknowledge positive outcomes immediately. It isn’t just a great pat on the back. It shows other team members that good work is appreciated and rewarded.
- Don’t break the bank: Company mentorships, employee engagement activities, and regular feedback don’t require a significant budget. Still, they pay back with a major boost to worker morale. A sense of belonging, increased trust, and connection to team members can all increase productivity and engagement.
- Attract top talent: No one wants to feel like their contributions are invisible. Employees desire leadership that recognizes their efforts and promotes a sense of purpose. Consistent acknowledgment and robust noncash employee benefits support a positive company culture and work environment that attracts and retains valuable team members.
- Intrinsic motivators: Initiatives supporting personal growth, well-being, and employee recognition tap into employees’ internal drive for personal fulfillment. They resonate on a deeper level, fostering a sense of purpose and a desire to do meaningful work.
- Unify teams: Volunteer opportunities, team outings, or casual Slack channels strengthen team bonds. These nonmonetary incentives motivate employees to collaborate and communicate with their peers with mutual respect and trust.
Best non-monetary incentives for your team
Rewarding your employees’ unique contributions is crucial to nurturing a positive company culture and motivated workforce. Here are 10 nonmonetary benefits for employees to add to your employee rewards program:
1. Flexible working arrangements
Not everyone thrives in a traditional 9-to-5 work environment. Flexible, remote, and hybrid work schedules empower employees to choose when and where they work. A flexible work policy accommodates diverse personal needs, enhancing productivity by allowing employees to work during their most effective hours in environments that promote their best work.
2. Professional development opportunities
Professional training, workshops, and certification programs enable workers to grow their skills. Tailor-made learning opportunities show a commitment to employee growth and career enhancement. They boost morale and enhance the overall skillset of your workforce, contributing to long-term organizational success.
3. Additional time off
Everyone is susceptible to burnout, and many employees have responsibilities outside of work. Extra vacation days and personal leave support your workforce’s well-being. Let employees request additional time off based on their tenure, workload, or personal circumstances to show your commitment to work-life balance.
4. Public recognition
Acknowledge good work to foster a culture of appreciation that boosts morale and shows other workers what traits the company values. A structured recognition program that includes acknowledgment from leaders, management, and peers encourages a collaborative environment where everyone feels included and motivated to excel.
5. Wellness programs
Your company is only as healthy as its workers. To foster a healthy, productive workforce, support employees’ physical and mental well-being with wellness initiatives (e.g., mindfulness sessions, gym memberships, or regular health screenings).
Comprehensive wellness programs reflect a proactive approach to employee health. You will likely see improvements in absenteeism and retention while reinforcing a caring company culture.
6. Gifts
Gift cards, company swag, and personalized gifts immediately and tangibly acknowledge employee effort. These rewards show appreciation and motivate other employees to strive for the same recognition.
7. Fringe benefits
A fringe benefit is a perk that supplements an employee’s wage (e.g., a company cell phone, catered lunches, or college tuition assistance). It enhances the overall employee experience, contributes to a positive work environment, and provides a competitive advantage in the labor market.
8. Employee engagement initiatives
Team-building activities, cross-departmental projects, and social events create a sense of belonging. For global and remote teams, experiential engagement initiatives bridge the social gap and alleviate feelings of isolation, promoting greater satisfaction and retention.
9. Opportunities for social impact
Many workers want to make a difference in their community. Corporate social responsibility initiatives help workers build camaraderie and give back to the causes they care about. Plus, they encourage a sense of pride in the workplace, which strengthens employees’ connections to the organization’s mission and values.
10. Regular feedback
Regular performance reviews and one-on-ones are among the best ways to promote growth. Formal and informal recognition provides opportunities to discuss goals and address concerns. Employees will feel valued and cared for.
How to implement nonmonetary incentives in your company
No two employees are alike. Whereas some yearn for development opportunities and employee engagement activities, others respond better to tangible fringe benefits. That’s why the first step to implementing a nonmonetary rewards program is evaluating your employees’ motivations and preferences.
Conduct surveys or hold open discussions to gather insights into what drives them. Provide various incentives that cater to different preferences, mixing tangible incentives (like company swag) and intangible employee rewards (like professional development programs).
Likewise, set clear objectives for your incentive programs, such as improving morale, increasing productivity, or reducing turnover rates.
The benefits should be clearly communicated, inclusive, and accessible to everyone in the organization. Include valuable independent contractors in your benefits plan to keep them on your team.
As your rewards program progresses, regularly monitor and evaluate the impact of your incentives through feedback and KPIs. Continuously adjust your strategy to optimize its effectiveness.
Reward your global team easily and compliantly
It’s hard to nurture employee engagement when team members are distributed worldwide. Fortunately, you don’t have to do it alone.
Oyster’s global employment platform lets you implement competitive salaries and attractive benefits packages that align with your company’s mission—all while remaining compliant with local tax regulations and labor laws in 180+ countries.
Discover how Oyster’s Total Rewards can help you attract and retain top talent from around the world.
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About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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