A marketing gift is strategic, often-branded merchandise designed to boost brand recognition and foster deeper client or employee connections.

It falls into the non-monetary incentives category. Why should you care as an HR professional or small business owner?

Because, with the right non-monetary incentives, you can reward hard work, boost job satisfaction, and improve employee morale without breaking the bank.

So, if you’re ready to elevate your employee engagement strategy, keep reading.

Table of Contents

What Is a Non-Monetary Incentive?

What Is the ROI of Non-Monetary Incentives Compared to Monetary Rewards?

11 Examples of Non-Monetary Rewards

What Is a Non-Monetary Incentive?

A non-monetary incentive is a type of reward or perk, distinct from cash, that employers provide to team members in recognition of their hard work and contributions. 

Think of it as the intangible, invaluable “extra” that goes beyond the paycheck and caters to the inner desires of employees for acknowledgment and personal growth.

Fun fact; 65% of employees prefer non-monetary incentives instead of monetary rewards.

Here are some benefits of non-monetary incentives:

• Boosts employee morale: When employees feel valued and appreciated, their morale gets a significant boost.

Moreover, when employees believe they will be recognized, they are 2.7x more likely to be highly engaged.

• Increases employee retention: Offering unique perks often results in higher retention rates as employees find more reasons to stay.

According to a study, 79% of employees said that an increase in recognition rewards would make them more loyal to their employer.

• Improves employee productivity: Recognizing hard work can inspire employees to perform at their best, increasing overall productivity. 

In fact, Deloitte found that employee engagement, productivity, and performance are 14% higher in organizations that offer recognition than in those that don’t.

• Fosters Job Satisfaction: Research shows that 53% of employees feel an organization’s culture most strongly through recognition and celebrations.

Fostering a sense of belonging and appreciation through non-monetary incentives addresses the deeper needs of employees which they view as part of your company culture.

With this foundation set, let’s explore the tangible returns of non-monetary incentives compared to traditional monetary rewards.

What Is the ROI of Non-Monetary Incentives Compared to Monetary Rewards?

While monetary incentives are appealing, they often have a short-lived impact. 

Because employees grow to expect and depend on these bonuses, and when the motivation fades, they’ll need higher financial incentives to boost motivation. 

Plus, monetary rewards can strain company finances, especially for small businesses.

On the other hand, non-monetary incentives nurture a sense of community, recognition, and personal development, leading to a longer-lasting impact. 

Professor Scott Jeffrey’s study at the University of Chicago found that staff motivated with non-cash rewards outperformed those given cash incentives by a striking 38.6%.

And while monetary rewards have their place, non-monetary incentives often offer a superior ROI by building lasting employee engagement and satisfaction. 

According to Workhuman, a culture of recognition can save a company with around 10,000 staff members up to $16.1 million each year in turnover costs.

With this understanding, let’s explore 11 impactful non-monetary rewards that can revolutionize your retention and morale strategies.

11 Examples of Non-Monetary Rewards

Engaging and retaining top talent goes beyond just salary bumps. 

Let’s explore 11 innovative non-monetary rewards that can boost your team morale without putting a dent in your company’s pockets:

1. Flexible work arrangements

Flexible working arrangements grant employees the freedom to choose how, when, and sometimes even where they work. 

When flexible work arrangements are done right, the outcomes in terms of employee satisfaction and loyalty are impressive.

In fact, 73% of employees said flexible work arrangements increased their satisfaction at work, with 78% saying it made them more productive.

Examples of flexible work arrangements include:

• Having work-from-home options or days.
• Granting half-days, e.g. half-day Fridays.
• Giving employees the freedom to set their daily schedule.

How to implement:

• Allow employees occasional work-from-home days to provide a break from commuting and a change in their working environment.
• Use half-days as a reward for great performance or as a general morale booster.
• Move beyond rigid schedules and allow employees to manage their daily tasks, while focusing on results over clocked hours. 

2. Company swag

For employees, company swag isn’t just about wearing branded merch; it’s about embodying the spirit of the company and feeling a genuine sense of belonging.

So, think eco-friendly swag if you’re an eco-conscious brand or high-quality tech gadgets as a forward-thinking tech startup.

How to implement:

• Tailor to fit preferences: Are your employees into fitness? Branded water bottles or yoga swag are good gift ideas. Are they mostly remote? Think cozy blankets or personalized work-from-home kits.
• Create pop-up shops: Pop-up shops allow employees to select and customize their swag, ensuring they get items they genuinely love and will use. It’s a brilliant way to involve them in the swag selection process, and it adds more excitement to the mix.
• Tie it to special celebrations: Consider themed days where everyone flaunts their new swag to keep the excitement fresh. Or give personalized gifts to celebrate a promotion or work anniversaries.

3. Professional development opportunities

According to LinkedIn, 94% of employees say that they would stay at a company longer if it invested in their career development.

So, investing in professional development is making a declaration that you believe in your team’s potential and see a future with them in the organization. 

Examples include:

• Specialized training sessions.
• Online courses.
• Peer coaching initiatives.
• Mentorship programs.

How to implement:

• Initiate dialogues or surveys to understand where knowledge gaps lie or what skills employees want to acquire. 
• One size doesn’t fit all, so offer a blend of training courses. While some may benefit from a software tutorial, others might find value in leadership workshops.
• Dedicate days where employees can explore new courses or workshops that resonate with their personal growth aspirations. 

4. Public recognition and appreciation

Recognizing and publicly appreciating employees fosters a culture of gratitude, and motivates other employees to strive for excellence. 

The essence is to make employees feel valued, noticed, and integral to the company’s success.

After all, “A company is only as good as the people it keeps.” (Mary Kay Ash).

Public recognition can manifest itself in various ways, such as:

• A monthly “Employee of the Month” or “Best Team Player” award.
• A simple shout-out in a team meeting.
• A company-wide acknowledgment.

How to implement:

• Hold recognition events: Plan regular events — monthly, quarterly, or annually — dedicated to employee recognition. This consistency ensures appreciation is a core part of your company culture.
• Feedback mechanisms: Incorporate tools or channels where peers can nominate or acknowledge each other’s contributions. Research shows peer-to-peer recognition is 35.7% more likely to have a positive impact on performance than manager-only recognition.
• Celebrate on different platforms: Make use of newsletters, company intranet, or even social media channels to broadcast achievements, ensuring that the acknowledgment reaches a wider audience.

5. Additional time off

While paychecks compensate for work efforts, granting extra time off promotes work-life balance — showing your company’s commitment to employee well-being and mental health.  

Plus, a well-rested team is a productive team. 

Based on a study, taking time off decreased the likelihood of job stress by 56% and days with activity limitations by 24%, and more than doubled the likelihood of job satisfaction.

Here are some examples: 

1. Compressed workweeks, like a 4-day workweek.
2. Paid holidays without eating into employees’ Paid Time Off (PTO). 
3. Extra time off to celebrate work anniversaries or birthdays.

How to implement:

• When introducing extra time off, set precise guidelines. Is it going to be merit-based or otherwise?
• Invest in a robust leave-management system that allows employees to view and manage their time-off balances.
• When managers or supervisors actively take leave, it endorses the concept and encourages others to do the same. 

6. Free lunches or snacks

Everyone loves a free meal! Providing free lunches or snack boxes as employee rewards resonates deeply with employees and creates a sense of community and appreciation. 

This small gesture can greatly impact employee motivation and satisfaction. 

A study found that 67% of full-time employees are “extremely” or “very” happy with their current job when there’s access to free food.

How to implement:

• Set a realistic budget: This will help in partnering with caterers or deciding on menu items. 
• Include healthy options: While treats and sweets can be occasional, focus on providing nutritious and balanced meals to keep energy levels consistent.
• Allow for feedback: Regularly solicit feedback from employees about their dietary preferences to help improve the quality of meals being provided.

Author’s note: With the increasing awareness of dietary preferences and needs, it’s essential to cater to vegetarian, vegan, gluten-free, and other dietary restrictions. This way, everyone feels acknowledged and cared for.

7. Workplace wellness programs

According to Workhuman, missed opportunity and revenue loss due to low well-being amounts to $20M for every 10,000 workers.

Which is why incorporating workplace wellness in your recognition programs is crucial.

Wellness programs, when crafted carefully, can lead to reduced absenteeism, better morale, and an overall healthier, more vibrant workforce.

A well-structured wellness program can cover a range of components like:

• Monthly fitness challenges.
• Mental health initiatives, like stress-relief workshops, counseling services, or simple meditation breaks.
• Ergonomic workspace improvements, like standing desks or ergonomic chairs.

How to implement:

• Conduct a survey to understand your employees’ health priorities and concerns so you tailor the right wellness programs.
• Set clear goals you want to achieve with this initiative — whether it’s to reduce health insurance costs, decrease absenteeism, or boost employee morale.
• Consider wellness-themed branded merch, like water bottles, yoga mats, or resistance bands. It creates excitement around wellness programs and reinforces your company’s investment in employee health, every time they use the item.

8. Employee empowerment

Employee empowerment is an effective way of entrusting employees with autonomy, giving them both responsibility and confidence.

According to a study of over 7,000 employees, employees with a high level of empowerment ranked in the 79th percentile of engagement.

Examples of ways you can empower your team include: 

• Involving employees in decisions that affect their jobs and work environment. 
• Giving individuals or teams more ownership of projects or tasks. 
• Offering employees chances to lead initiatives, mentor junior team members, or represent the company at events.

How to implement:

• Invest in training programs: This will equip employees with the necessary skills and knowledge to take on bigger roles or challenges. 
• Mentorship programs: Pair less experienced employees with seasoned professionals who can guide them, share experiences, and offer invaluable insights.
• Acknowledge efforts and successes: This not only boosts morale but also reinforces the company’s commitment to its empowerment initiatives. 

Author’s note: While it’s crucial to trust empowered employees, regular reviews ensure that they’re on the right track and that they have the support they need.

9. Team-building activities

Team-building activities are designed to enhance bonding, trust, and communication within teams, especially in a remote work environment. 

And according to TeamStage, nearly 75% of employees see teamwork and collaboration as essential.

Some examples of team-building activities are:

• Skill-based sessions, e.g. problem-solving or conflict resolution sessions.
• Off-site retreats for a change of scenery.
• Virtual team challenges, like online trivia or virtual escape rooms.

How to implement:

• Know your objective: Clearly define what you aim to achieve, whether it’s improved communication, conflict resolution, or simply relaxation. 
• Be inclusive: Ask employees for activity suggestions or preferred dates to ensure higher participation.
• Ask for feedback: This helps ensure that each team-building session is more effective than the last.

10. Experiential rewards

When it comes to non-cash incentives, experiential rewards stand out. For employee motivation, experiences are often more valued than monetary compensation.

A study revealed 80% of people would prefer incentive travel and experiences to cash.

Because while tangible items have their place, experiences grow richer in our memories and become stories we cherish and share.

Some examples of experiential rewards include:

• Tickets to a popular concert, theater show, or sports event.
• Adventure outings, like ziplining, hot air balloon rides, or even a diving course for thrill seekers.
• Travel opportunities, like a weekend getaway or even a longer vacation to reward stellar work. 

How to implement:

• Personalize the experience: Understand your employees’ interests as tailored experiences always resonate more.
• Give room for feedback: Post-reward, ask the employee about their experience. It helps in refining choices for the future and shows you care.
• Allow plus-ones: Where possible, allow employees to bring a guest. Sharing experiences magnifies their impact.

 11. One-on-one meetings

While group meetings offer collective insights, one-on-one meetings are more personalized and essential for employee retention. 

Plus, the beauty of these meetings is the opportunity they provide the human resources (HR) team with to truly know and grow each team member.

Some benefits of one-on-ones include:

• It provides a platform for giving personalized feedback and recognizing good work.
• It makes it easier to discuss potential personal projects or volunteer work interests, if any.
• Regular check-ins signal to employees that their well-being and progress matter.

How to implement:

• Stay consistent: Whether it’s monthly or quarterly, consistency is key. You can use calendar apps to set reminders.
• Structure the session: Begin with positive feedback, dive into areas for improvement, discuss growth opportunities, and set clear goals.
• Provide a safe space: Listen, understand, and act on the concerns and ideas shared by the employee.

Learn More About Employee Appreciation

As we’ve discovered, non-monetary incentives can lead to better employee engagement, loyalty, and productivity.

It’s all about cultivating a culture of respect and mutual growth — whether that includes a simple handwritten note or an extra day off to boost morale.

Yet, there’s always more to discover. Ready to dive deeper?

Level up your HR skills with strategies that help you foster a thriving workspace where every member feels valued.

Your team is worth it.