Non-financial motivation and rewards refer to incentives and recognition
that boost employee morale and engagement without involving monetary
compensation, focusing on aspects like recognition, career development, and a
positive work environment.
With the cost of living rising faster than wages, many organizations
are looking for non-financial reward ideas to motivate employees and help them
accommodate rising costs.
Non-financial employee rewards are the non-cash benefits that organizations provide to their employees. Examples include summer working hours, subsidized gym memberships, free meals or employee discounts.
Non-financial rewards to motivate employees
- Flexible
working
- Summer
hours
- Birthdays
off
- Free
meals and snacks
- Financial
well-being support
- Employee
discount scheme
- Subsidised
gym membership
Below, we share how these non-monetary incentives could work
for you and your team.
1.Flexible working
This is a great example of a non-financial reward to
motivate employees. Flexible working means that employees can choose when and
where to work in order to flex their working pattern around other commitments.
Hybrid or flexible working is proven to support productivity, retention,
and employee engagement. In addition, working from home
for part or all of the week can help employees save money on travel.
2. Summer hours
Summer hours is a popular non-financial employee reward that
allows employees to reduce their working hours during the summer. This usually
means that from June to August employees can finish up a few hours early on a
Friday. Some organisations invite colleagues to work an extra hour one day a
week in order to finish earlier on a day of their choice.
Consultancy firm PwC recently announced that employees can
finish work at lunchtime on Friday, after piloting the initiative last year.
PwC surveyed staff before introducing shorter hours, with three-quarters of
staff reporting that it “impacted their general wellbeing to a great extent”.
Alongside wellbeing benefits, this employee reward idea is a significant
recruitment and retention tool too.
3. Get your birthday off
Giving people a day off for their birthday is a simple
non-financial reward to motivate employees. Organisations like compare, KPMG,
Dunelm and Virgin Media all offer this perk. Dunelm have extended this to
include other milestones such as a child’s first day at school.
4. Meals, snacks and treats
30% of UK companies offered free refreshments
and meals at work prior to 2020. Snacks and meals are still a desirable perk
for employees, however our office set-up isn’t what it was. Many companies have
moved away from traditional offices into co-working spaces like work life, where People
Insight’s office is based. Alongside other perks, Work.Life provide members
with breakfast, snacks, fruit and Thursday beer & pizza.
Additionally, with hybrid working on the rise, organisations must consider how to include
those working from home. Companies like huge or just eat for business all provide snacks and treats for remote teams.
5. Support for financial wellbeing
Financial wellbeing support is critical right now. Financial wellbeing means
feeling in control of your finances, comfortable meeting current and future
obligations, and secure about your financial future. Organisations can support
this by providing help with:
- Financial
literacy (help budgeting, improving credit rating etc)
- Managing
debt
- Longer-term
planning for savings, investments and retirement
Employee needs will differ depending on personal
circumstances, life stage and goals so your financial wellbeing support must be
equally flexible. Employee Assistance Programmes (EAPs) are a useful option for
businesses as they offer employees support with mortgage advice, debt
management, financial planning and more.
On top of that, give employees access to a platform
like bippit for
accessible, human financial advice. Tools like these also offer targeted
financial support at key moments in working lives such as ahead of maternity
leave, retirement or when moving house.
6. Discounts on everyday essentials
Employee discount schemes are a popular non-financial reward
to motivate employees. These discounts are not just about encouraging employees
to treat themselves. A wide-ranging employee discount programme can help
employees save on essentials like groceries or school uniforms, as well as
making holidays, home improvements or cinema trips more affordable.
If you already have a scheme like this, ensure you are
communicating about it often and promoting its value to employees. Look at
usage rates over the last 6 months. If these are low, it may be that employees
aren’t aware of the scheme, are having trouble accessing it, or need something
else. Consult your employees to understand how you can make this scheme more
valuable.
Similarly, if you are planning to offer employee discounts
first run a quick pulse survey and invite feedback and suggestions to shape your scheme.
7. Subsidized gym membership
Consider how your organisation could subsidise or support
gym memberships for colleagues as a non-financial reward to motivate employees.
Gym and sport club memberships are likely to be amongst the expenses people cut
back on as the cost-of-living continues to rise. Yet alongside its benefits for
physical health, regular exercise has been proven to improve mental wellbeing
and reduce
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ReplyDeleteThis is a timely and insightful piece, especially in today’s climate where employees are looking for more than just financial rewards. I appreciate how you’ve highlighted practical and meaningful non-financial incentives that truly support employee well-being and engagement. Flexible work options and wellness support are definitely game-changers. Great job showcasing how companies can show appreciation beyond paychecks!"
DeleteThank you Ishara I appreciate your feedback .you are correct that employees are looking for more than just financial rewards. I was highlighted practical and meaningful non-financial incentives that truly support employee well-being and engagement.
DeleteThis article highlights the importance of non-financial motivation and rewards for employees, especially as living costs rise. It suggests various benefits, like flexible working hours, summer hours, and time off for birthdays, which can boost employee morale.
ReplyDeleteOffering free meals, financial well-being support, employee discounts, and subsidized gym memberships are also great ways to show appreciation without monetary compensation. These non-cash incentives can help create a positive work environment, improve employee engagement, and promote overall well-being, making employees feel valued and motivated.
Thank you Thilanka for your thoughtful comment. I agree, non-financial motivation and rewards for employees, especially as living costs rise. It suggests various benefits, like flexible working hours, summer hours, and time off for birthdays, which can boost employee morale.
ReplyDeleteThis article effectively highlights various non-financial rewards, such as flexible working, summer hours, and birthday leave, to boost employee motivation and well-being. It also emphasizes the importance of offering perks like financial support, discounts, and gym memberships to enhance employee satisfaction without increasing costs. These strategies provide valuable solutions for improving engagement, especially during times of rising living expenses.
ReplyDeleteThank you very much for your kind comment. .you are correct that employees are looking for more than just financial rewards. I was highlighted practical and meaningful non-financial incentives that truly support employee well-being and engagement.
ReplyDeleteThis discussion of non monetary incentives and rewards is clearly stated. You've brought up a pertinent and significant subject, particularly in light of the current disparity between stagnant income and growing living expenses. The emphasis on worthwhile alternatives, such as career advancement, company culture, and lifestyle perks, is commendable. These kinds of incentives not only boost spirits but also demonstrate a sincere concern for workers' well. Excellent observation!
ReplyDeleteThank you very much Nilusha for your thoughtful comment .
Delete