Experienced managers and human resources professionals have learned that the best way for employees to feel appreciated and connected to an organization is through employee engagement. Generally, higher employee engagement within an organization leads to better employee performance and reduced turnover.
A common way to increase engagement is through financial means, such as a promotion, bonus, or an increase in wages. Although monetary bonuses have their place, the impact may be short-lived. As time passes, the excitement fades, and the bonus quickly becomes an expected part of compensation. Also, what happens when a budget is tight, or the organization is a non-profit, or a government agency with limited resources? While financial compensation matters, it’s often not what inspires long-term passion, loyalty, and innovation from employees.
The most powerful rewards should be a reflection of the desire for employees to be seen, valued, and connected to a purpose. This is where non-monetary compensation or rewards come in. If done correctly, these methods may often be more meaningful and memorable than a simple bonus.
Criteria for Rewarding Employees
To make any reward impactful, it should meet the following criteria:
- Be Specific: Don’t just say “thanks.” A more impactful statement would be “Thank you for staying late to correct the errors in the report.” Or, “Your attention to detail was noticed and greatly appreciated by the customer.”
- Be Timely: Reward the behavior as close to the achievement as possible.
- Be Sincere: Employees desire honesty and integrity from their employers. They may be able to tell when something is not authentic. So, making sure that the reward comes across as being sincere is important.
- Be Fair: Ensure that the system for recognition is transparent and perceived as fair by everyone. Ask employees what type of rewards would be most impactful to them to involve them in the process.
Creative Ways to Show Appreciation
There are many creative ways that employers may show employee appreciation. However, here are a few examples:
- Public Recognition: Start an “Employee Spotlight” feature in your organization’s newsletter, on the organization’s social media pages, or on the organization’s website, detailing the specific achievement of the employee and their impact on the organization. Implement an “Employee of the Quarter, Month, or Year” program where the employee is selected by their peers, and wins a small trophy or gift. Display their name and photo in the workplace on the organization’s website and social media pages, and have a leader write a note explaining why the employee is receiving this honor.
- Reward with intention: It is important to know your employees on a personal level. An introverted person may dislike public recognition, but would value a membership to a book club. A career-driven employee would value a reward of mentorship, or one-on-one time with an executive. Personalizing rewards will show employees that they are seen and respected by the organization.
- Give the Gift of Time: Employees always appreciate time away from the work environment. Ways to achieve this would be to offer a flexible schedule or remote work option for a limited time, provide the employee with a wellness day, or an extra personal day. Another way is to allow employees to take time off with pay to participate in a local community service event of their choice.
- Invest in Professional Growth: Employees feel secure in the workplace where they are given opportunities for development, which could lead to career advancement. Allow employees to participate in free online webinars or to attend free seminars during their workday. Or, offer a “Lunch with the CEO”, or a mentorship session with a respected senior leader. And, when fiscally feasible, consider rewarding employees by sponsoring the cost of a certification, online course, or conference that aligns with their career goals.
- Special Rewards: While they are not non-monetary rewards, if the employer has the means to spend money, an organization may host a team celebration lunch or happy hour to mark a success, give the gift of an experience by sponsoring tickets to a concert, sporting event, or museum, or surprise the workplace with a catered meal, coffee cart, or ice cream as a spontaneous thank you.
The Bottom Line
Non-monetary rewards for employees are not always about things or perks. It is generally always about fostering a culture of gratitude in order to increase employee engagement and reduce turnover. It’s about continually reminding your team that they are valued members of the organization by making rewards specific, timely, sincere, and fair. A culture of gratitude may be achieved by giving employees public recognition, rewarding them with intention, giving them the gift of time, investing in their personal growth, or spending a little money for special rewards. However, employers should remember that many times, the most valuable rewards don’t cost a thing.
Written By: Imani Murphy, MSM, SHRM-SCP
Senior HR Consultant
12/11/2025
Sources:
- Harvard Business School: https://www.library.hbs.edu/working-knowledge/money-isnt-everything-the-dos-and-donts-of-motivating-employees
- Society for Human Resources Management (SHRM): https://www.shrm.org/topics-tools/news/benefits-compensation/how-flexible-rewards-programs-boost-employee-engagement
