Motivating Employees Beyond Cash Rewards

One of the biggest challenges faced by employers is retaining talent. Many companies try to use money to solve this problem, they offer incentive pay, bonuses, and even salary increases to motivate employees and achieve loyalty from the team. However, cash is not always the best answer to this problem. Research has shown that employees are not motivated by cash and do not feel rewarded or recognized. What they crave is a little more than that. They want the managers to appreciate them and show their appreciation in ways that go beyond a check. Employees seek flexible work schedules, wellness clubs, gift cards, and a paid day off for a job well done.

While cash is important, it is not everything that individuals seek. They need rewards that show that they did a great job and the manager cares for them. This will make them want to work harder and put in more effort. Many companies do not have recognition programs for employees and this is where management needs to catch up. Companies that have a recognition program enjoy higher productivity, higher returns, and lower job turnover than those that don’t. Here are a few ways you can motivate your employees beyond cash rewards.

Emphasize benefits when recruiting 

When interviewing or recruiting employees, talk about the job perks besides the salary. While the candidate is interested in the salary, they want to know what else you offer for their work. Talk about the perks like flexible schedules, mentorship programs, wellness programs, and other perks that give your company an edge. When you focus on the benefits, you will see higher application rates. Such rewards show employers care about their employees and are more considerate when helping them achieve the right work-life balance. This matters a lot more than a little extra money.

 Evaluate performance incentives 

Several companies try to motivate employees through money as an incentive for future work. But this does not motivate them or boost their performance. Whenever the pay is linked to the performance, employees will become obsessed with the amount of money and they will try to earn more of it. Instead, what will work better is an incentive to hand out the reward right when the employee completes and excels at a certain task, instead of announcing it beforehand and making them work for only the money. Be very clear about the scope of work and why you are handing out the reward to the employee.

Reward in kind 

Thoughtful gifts instead of cash can indeed go a long way. When you mix cash and a prize, your employees will feel appreciated and motivated to do better. People like to receive non-cash gifts since they spend the bonus on paying rent, buying gifts for children, or even buying groceries. These are less enjoyable or memorable than receiving gifts like trips or electronics. You could also personalize the gift to make it more special. Choose the gift based on your employee’s personality and preference. If you have someone who enjoys fitness activities, gift them a gym membership. If someone loves to travel, give them a gift card to book a nice holiday and if there is someone who is a football fan, get them VIP tickets to the upcoming game. Another benefit of rewards in kind is the workplace buzz that comes with it. Not many people will feel comfortable talking about money and they will not speak about a cash bonus they received. Instead, it could be EDCO awards or a momento they receive for exceptional work, they will be happy to showcase it. Even if it is a dinner or an electronic gadget, they will talk about it with their colleagues and motivate others.

The gift of time  

An intangible perk is the gift of time that all employees will value. When you provide flexible work options or a chance to choose the projects they want to work on, it will motivate the team and offer stronger job satisfaction. Several employees will value the opportunity to work from home and if you allow them this flexibility, they will feel like you trust them to get the work done on time. It is highly motivating and satisfying. Research has also shown that those employees who take time off work tend to be more engaged and less stressed, leading to higher productivity. The gift of time could be one of the most generous gifts you give them. Have a vacation policy, flexible work options and paid time off.

Peer review 

Establish a peer-to-peer recognition program where the employees provide feedback and reward points that will encourage the team to work harder for the small wins. A certain number of points can then be redeemed for the perks of their choice. It is an inexpensive way of keeping the employees motivated and making the art of appreciation genuine. This activity can also help build interpersonal relations and people will feel more fulfilled for the work they do.

Make it public

A kind word and a small act of appreciation can go a long way. When you appreciate the employee in public, it will make them feel recognized and will also motivate others to perform better. Hold workplace events regularly and invite all the employees to be a part of it. Build a social experience around their hard work and make the event more meaningful so that they remember it. Invite their families, call the employee on stage, and appreciate everything they do for the organization. However, do make sure that others do not feel left out. Try to include as many employees as you can. After all, teamwork makes the dream work.

Sometimes even a simple thank you can do the job. The idea is to recognize employees as a part of the team and to make them feel valued for the hard work they put in. You do not need to thank them only for the work that leads to a profit but it could be something as simple as ensuring that everything in the project went smoothly because of their presence.