We receive rewards when we show excellence in our performance in the workplace; these incentives can include different prizes of both monetary and non-monetary value. But between these two possible types of rewards, employees prefer receiving one over the other.
Monetary Rewards
Monetary rewards are prizes of cash or credit that an employee can use inside or outside the company. These types of incentives will usually have a set price for how much a person will win. These monetary gains are offered to the employee directly or added onto their next paycheck at their discretion.
Cash Is Universal
A benefit of monetary prizes is the ability to use them anywhere cash or credit is accepted. There are unlimited uses for these prizes, and the ease of use is a definite determiner of whether employees prefer monetary or non-monetary incentives.
Gift Cards Save Money
Gift cards are a special monetary reward since they can only be used at specific stores or locations. Gift cards can save a person money by limiting the amount they spend to only what is available on the card.
Non-Monetary Rewards
Non-monetary rewards come in the form of pre-purchased items selected by the company. These items have a general value as far as team incentives go, but they may still have a particular significance to some people.
Straightforward Use
The rewards offered may include items to use in the office, supplies to stock the home with, or anything that people find fun or useful. These prizes will have a straightforward use, unlike monetary rewards.
Saves You the Trouble of Shopping
Depending on the items offered by the incentives program, employees may be able to save themselves a trip to the store simply by working harder at their jobs. For instance, if an incentive program offers a reward in the form of new office supplies, employees can work toward achieving that reward rather than going to the store and purchasing this new supplies with their own money.
Which Is Preferred?
Although monetary rewards have more flexibility and most places accept them, non-monetary rewards retain employee interest longer. The use of items that people can see is more exciting than a cash prize with numerous possibilities, showing that employees do not prefer monetary rewards over non-monetary incentives. Non-monetary offers will give a person a more tangible goal to work toward and build incentives; thus, non-monetary rewards are better.
Rewards give us motivation and inspire us to do more. Monetary and non-monetary rewards are great incentives, and there are several things to consider when choosing the best incentive for your company’s program. However, in general, non-monetary rewards are best.