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Monetary and Non Monetary Rewards

This document discusses and compares monetary and non-monetary reward systems for employees. It outlines 7 types of non-monetary rewards including recognition programs, training, vouchers, flexible hours, thank you notes, employee choice awards, and nomination-based awards. These are meant to boost morale and self-esteem without direct monetary costs. It also describes 5 monetary rewards: stock options, profit sharing, raises, bonuses for meeting targets, and contests for increased productivity. Monetary rewards provide direct financial incentives for employees to strengthen performance and engagement.

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244 views3 pages

Monetary and Non Monetary Rewards

This document discusses and compares monetary and non-monetary reward systems for employees. It outlines 7 types of non-monetary rewards including recognition programs, training, vouchers, flexible hours, thank you notes, employee choice awards, and nomination-based awards. These are meant to boost morale and self-esteem without direct monetary costs. It also describes 5 monetary rewards: stock options, profit sharing, raises, bonuses for meeting targets, and contests for increased productivity. Monetary rewards provide direct financial incentives for employees to strengthen performance and engagement.

Uploaded by

priya6batra-2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MONETARY AND

NON MONETARY REWARD SYSTEM

NON - MONETARY REWARDS

1. Employee Recognition Programme -Recognition means acknowledgment and appreciation of work


done by employees.
Result: Recognition in the organization boosts their self-esteem and they feel motivated.
Type - Non monetary
Give when - Declaring best performer of the week or month, displaying their names on the notice
board and giving them rewards.

2. Training and Professional Development - Professional development opportunities


Result: that the company recognizes the values of its staff and is willing to invest in improving their
skill sets and helping them move forward in their career challenges.
Type: Non monetary
(Orientation, Technical Skills Development Training, Soft skills development training)
Given when – new joiner, exceptional performers

3. Voucher /coupons: Numbers of organizations are finding voucher schemes to be highly effective
and popular with employees.
Result: Vouchers can also be seen as a double reward, that is, one reward when they receive the
voucher and another when they spend it.
Type: Non monetary, (travel vouchers, fine dining vouchers, event vouchers.)
Given when: any achievement, or active participation

4. Flexible Hours or Time Off: Giving staff flexible hours and time off (or time working from home)
Result: allows them to better serve those needs and increases their desire to do more, boosting
morale among staff as they to contribute more to their personal lives.
Type: non monetary
Given when: to women, based on performance

5. Employee’s Choice: employees are asked for opinions in terms of non monetary rewards
Result:
Type: non monetary
Given when:
6. Handwritten ‘Thank You’ notes: to write personalized notes
Result: The time and effort made despite the hectic schedule give employees the assurance that
their contribution is valued and their hard work is appreciated.
Type: Non monetary
Given when: small accomplishments, target based achievements.

7. Nomination-based schemes: based on nomination by colleagues


Result: Organizations that do not wish to offer something that has a monetary value can offer a
memento, trophy or certificate to denote the employee’s contribution.
Type: Non monetary
Given when: Staff achievement awards, team working, customer service, individual contribution.

MONETARY REWARDS

1. Stock options: When you grant your employees stock options, you give them the right to purchase
company stock at a fixed price
Result: encourage staff members to operate more as business partners, tying personal reward to the
company’s financial success.
Type: monetary
When: accomplishment of targets, and a particular number of years completed

2. Profit sharing : Companies that have profit-sharing programs set aside a percentage of their profits
for employees
Result: When employees have a financial stake in the company; they tend to work harder and
smarter.
Type: monetary
When: beneficial for both company and employees, certain period completed in a company

3. Raises: Companies initiates once-a-year event greatly anticipated by employees


Result: amount generally varies depending on the individual’s performance
Type: Monetary
When: can be given yearly basis on the performance

4. Bonuses : Companies declare bonuses one time per year or at a certain number of predetermined
times each year
Result: an x factor included in the salary by which employees get motivation time to time.
Type: Monetary
When: depending on the job done by employees, yearly , monthly , quarterly

5. Contests: Sales or production contests are another way to offer monetary rewards
Result: an additional bonus or prize to the person or team with the highest level of production
encourages employee to do better.
Type: monetary
When: monthly contests to increase the productivity

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