11 Examples of Non-Financial Rewards for Employees
10 February 2025
Monetary employee rewards are a hit with your workforce, giving their payslip a boost and stretching their salaries further. Still, the type of employee rewards your people are interested in may surprise you. Money talks, especially during times of financial crisis, but there's also a place for non-financial rewards for employees within your workplace recognition strategy. Read on to discover the employee reward ideas that will enhance engagement, loyalty and motivation in your business.
Employee rewards… there are many options to choose from - eVouchers, cashback, and bonuses. Do all employee reward examples have to be financial? More importantly, what power do non-financial rewards have in helping motivate employees?
Employee rewards ensure your workforce feels valued for their efforts and achievements. An impactful recognition strategy and the right employee rewards can incentivise, motivate, engage, energise and help you retain your talent.
Effective employee rewards = higher employee engagement, productivity, and retention levels!
Employee Reward Ideas on a Budget
The cost of doing business remains high, and the National Minimum Wage will rise in April 2025 along with employer National Insurance Contributions, significantly increasing the payroll for many companies. The financial implications will differ for all, but when operating costs rise, businesses usually aim to recoup the extra expense by passing it on to their clients and consumers or cutting back spending wherever possible.
Employee rewards, especially when financial, go beyond personal achievements, factoring in overall business performance and revenue. The bottom line is that a business can only offer financial rewards if the funds are available.
Aspiring to retain or boost high levels of employee engagement helps businesses achieve their revenue goals since engaged employees are more productive. Investing in your employee rewards strategy remains a vital way to incentivise employees and achieve results.
How Non-Financial Rewards Motivate Employees
Offering non-financial rewards for employees is a cost-effective way to engage, motivate, and retain your talent. Have you read our blog - How Maslow's Hierarchy of Needs Can Transform Your People Strategy?
Exploring Maslow’s renowned theories, summarised through his hierarchy of needs, we explain the critical role recognition has in the workplace. It’s an eye-opening read, helping to explain the theory and how to apply it to employee engagement and motivation.
Maslow’s motivational pyramid offers a clear vision of what employees find rewarding - what genuinely motivates them to continue on a specific path. Interestingly, none of the motivators listed are directly financial, although employees advancing their careers would expect a pay rise to correspond with additional responsibilities.
These motivators help put you in the mind of your employees, providing a holistic view that we’ve used to give you new ways to think about employee incentives and rewards.
11 Examples of Non-Financial Employee Rewards
Having an employee reward strategy is essential, and while some require long-term thinking and investment, you can implement others immediately. Here are 11 non-financial rewards for employees to implement today.
1. Public Praise
A thank you costs nothing; a note to say, ‘job well done’ takes no time, especially compared to the impact. These seemingly small but significant actions form part of a recognition culture.
- 67% of employees consider praise and commendation from line managers to be effective motivators.
- 63% of employees believe that attention from senior leaders is also a great way to recognise employees for a job well done (McKinsey & Company).
Giving thanks and praise enhances relationships between employees and employers, helping your people feel valued whilst building trust and loyalty. Make the praise personal and always consider individual needs and preferences, as some employees may prefer their acknowledgement to remain private.
2. Extra Time Off
Offering extra paid time off is a non-financial reward because there's no money exchanging hands. Still, time is money, so there is potentially a cost to the business due to reduced productivity. Do the pros outweigh the cons? That’s the question to ask yourself.
Reduced productivity could be a short-term consequence of giving employees additional paid time off, but it pales into insignificance when we consider the pros. We all love our weekends and holidays, so offering your teams a surprise day off - in addition to their annual leave allowance - will definitely put a smile on their face.
A healthy work-life balance is essential, allowing employees to experience more of what matters most. Whether that’s time with the family or a chance to rest, you can bring more joy to their lives. A tick on the list of pros for your employees, but what about your business?
Your employees want you to show an authentic interest in their wellbeing. By accepting the slight drop in productivity you’ll experience by giving them an extra day off as an employee reward, you’re proving that you’re walking the talk when it comes to workplace wellbeing.
As a result, you can add the benefits below to your list of ‘pros’:
- A physically and mentally healthier workforce.
- A rise in employee engagement.
- Increased motivation.
- Higher rates of employee retention
- .A company culture that improves talent acquisition and more!
When you add all these positives up, we have to question whether you lose a day’s worth of productivity at all. As non-financial incentives go, extra time off boosts employee engagement in the long term and will have a lasting positive impact on productivity.
3. Career Development
Personal growth is the first motivator in Maslow’s hierarchy; employees achieve growth by gaining new skills and experiences. Your Learning and Development (L&D) team nurture your talent so they can advance with the business, but is L&D built into your recognition strategy?
Career progression opportunities are essential for nearly 49% of people when choosing an employer (Randstad). What better way is there to recognise achievement, to prove that you believe in and are committed to your employees than by investing time and money in their development?
Training and development opportunities create empowered, motivated, and loyal employees, making them an investment that yields a return.
4. Promotion
Second in Maslow’s hierarchy is advancement. When employees achieve growth and new skills, the opportunity to advance must come next. The ultimate employee reward - a promotion cements your appreciation. Employees feel valued and recognised, understanding they’re critical to your organisation’s success.
Advancement isn’t for everyone, and no employee is the same. Some will have a clear path with ambitions to ‘make it to the top’ while others prioritise happiness and stability. Read the room, know your people, and offer the employee rewards that matter most.
5. Personal Goals
We’ve talked about workplace training, but what about employees' personal goals? Pursuing an interest or hobby enhances employee wellbeing and happiness, so do all the training opportunities you offer need to be limited to workplace courses?
Remember, not all employees want to climb the ladder, and they may feel an additional course is just ticking a box. What if what they really want but haven’t been able to afford are piano lessons, a pottery course, jewellery making or an art class? Allowing them to do something new that brings them joy will give them a real boost - especially when it’s something they’ve put off doing due to cost.
It's a holistic view of learning and development that acknowledges that helping employees pursue their passions outside of work will make them feel more complete and enhance their loyalty to your business. More loyalty = higher employee engagement.
6. Create Leaders through Autonomy and Trust
Creating leaders isn’t just about promotion and professional growth; we’re thinking beyond the concept of people leaders and levels of seniority. That’s not the only way to create leaders.
You can empower employees at all levels to be leaders in their roles, giving them autonomy in how they approach their jobs. Putting trust in them shows that you recognise their capabilities. It’s an ‘un-spoken’ employee reward with a significant subliminal impact.
7. Acknowledge Expertise
Take autonomy and trust a step further by accepting an employee as a leader in their role and as a subject matter expert. This non-financial reward speaks volumes, showing your employees that you understand their worth. Perhaps more importantly, you’re showing them that their opinion matters and they’re making a difference in your business.
Take the trust you create through autonomy to the next level by creating a sense of belonging.
8. Additional Flexibility
Flexible working options have become standard practice since most employees seek them when applying for a role. Flexible working policies allow employees to work in different locations and fit work around their other commitments. We can take this to another level and create flexible employee incentives. Recognise and reward employees committed to your values and hard work by giving them even more flexibility over their daily schedule.
9. Set a New Challenge
We discuss promotion in point number three, but there may be times when a more senior role is unavailable. Create opportunities to lead on projects to keep the momentum going so they’re ready for the next step. Showing them that there are different ways to advance will encourage them to stay with you.
These new challenges show your employees that you understand they’re capable of more, keeping them motivated and engaged.
10. Team Activities
When you need to show a whole team recognition, you should consider a team activity or event. Whether that’s an afternoon in an escape room, bowling or crazy golf, giving your team some timeout to have fun is a much-appreciated employee reward. Team activities are also proven to boost morale, camaraderie and employee engagement.
11. The Opportunity to Do Good
At Pluxee UK, we give our employees three paid volunteering days annually… and they love them! If you ran a survey, you’d find that your employees would enjoy the opportunity to give back and do some good within their community. Whether you embed volunteering into your benefits package or offer it as a non-financial reward for employees, it will enhance their mental and emotional wellbeing.
Finding a Balance Between Financial and Non-Financial Employee Incentives
We may be focusing on non-financial rewards during this blog, but it’s essential to remember that the employee reward ideas we’re discussing shouldn’t replace monetary rewards entirely.
Pluxee UK has the perks your people will love! Our eVouchers are cost-effective for your business and inclusive of the varied interests of your people. As employee rewards go, they’re perfect for saying thank you or delivering a birthday treat. Our Pluxee Card ticks all the boxes for a long-term employee reward strategy, streamlining delivery and allowing employees to earn up to 15% cashback.
Applying Maslow’s Theories to Pluxee’s Thought Leadership
Now you have a selection of non-financial employee reward examples to implement into your business, there's nothing stopping you from boosting engagement. We have so many ideas because different things will matter to each individual. Make reward and recognition personal and meaningful - whether financial or not - and you’ll see the best results.
Taking psychological theories and applying them to your business… it’s the Pluxee Effect! Join us in creating highly motivated and engaged employees who feel your workplace is where they belong.
Sources: Randstad, McKinsey & Company
