Rewards in the form of gifts or vouchers given to an employee to recognize their efforts and achievements at work by an Employer are called Tangible Rewards. These rewards come in both monetary and non-monetary terms, depending on what adds the most value to the employee.
For example, a company sets a target for the employees and a particular set of rewards that they might get once they achieve that particular number. For example, some companies offer paid vacations for the employee and the family, while some choose gift cards, gadgets, and other similar compensations.
Tangible rewards and intangible rewards are two different types of incentives or benefits that individuals may receive in various contexts, such as work, education, or personal achievements. They have distinct characteristics and can have different effects on motivation and satisfaction. Here's a breakdown of each:
Tangible rewards are used for several reasons in various contexts, including education, the workplace, and personal achievement. Here are some of the key reasons why tangible rewards are employed:
Read Also: Exploring the Different Types of Incentives and How to Use Them to Motivate Your Employees
To explain in detail, the different types of Tangible Rewards companies often provide to their employees; you can check out the list below based on our research.
1. Bonus: Rewards awarded in the form of cash. These can be either fixed pay that the employee is aware of or discretionary bonuses based on performance.
Read Also: Total Reward Strategy - Rewards Strategy Planning In 2023
2. Salary Increment- This, too, is based on the employee's performance which is a fixed pay and is added to the fixed salary.
3. Gifts Coupons- Gift baskets and coupons offered to employees during festivals and holidays.
4. Vacations- Employees are given paid vacations for their exceptional achievement and contribution towards the overall profit of the company.
5. Gadgets and More- Multiple companies often reward their employees with high-end gadgets once they reach a particular goal as an organization to show their appreciation.
Tangible Rewards are essential in benefiting the employees and the organization on multiple levels. Here is what we know.
The first and foremost benefit of these Tangible rewards is that they lead the employees to perform better and harder at work. Rewards act as a sense of appreciation and recognition for the employees, encouraging them to reach their maximum potential.
Furthermore, it is believed that non-cash rewards are more motivating since personalized gifts and appreciation are more meaningful than cash rewards, which employees consider part of their salary.
When the rewards and compensation are fixed from the company’s end, employees tend to work harder to achieve the goal and target the rewards. This, in turn, helps the companies grow their revenue overall.
A lot of companies introduce team-based tasks and accordingly provide rewards to every team. This help creates better collaboration among team members and adds value to the company as a whole. This proves to be a great leader, a team-building exercise for all the employees, and the rewards act as a motivation to work toward a common goal.
Lastly, if the employees are given special attention and recognition for their work, they are more likely to stay in the organization for longer. It is believed that most employees look to switch to other companies if they do not feel valued. Hence, these tangible rewards act as a great value altogether.
So overall, Tangible rewards can be particularly effective when they are tailored to the individual employee and their personal interests, as this can make their ward feel more meaningful and valuable. In some cases, tangible rewards can also be symbolic, such as a trophy that represents the employee's achievement.
Also Read: Elements of a Total Reward Statement
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Tangible rewards for employees can include bonuses, salary increments, gift coupons, paid vacations, and gadgets, among others. These rewards are often given to recognize and incentivize their efforts and achievements at work.
Tangible rewards are physical or monetary incentives, while intangible rewards are non-material and focus on emotions and personal growth. Tangible rewards are often associated with extrinsic motivation, whereas intangible rewards are linked to intrinsic motivation.
Tangible rewards can benefit employees and organizations by motivating employees to perform better, leading to revenue growth. They can also improve team collaboration and enhance employee retention, as employees feel valued and recognized.
Tangible rewards are important in the workplace because they provide immediate motivation, offer clear incentives, and can be measured and customized to align with individual preferences and performance metrics. They help organizations recognize and reward employee achievements effectively.
Companies can choose the right tangible rewards by considering the preferences and motivations of their employees. Tailoring rewards to individual interests can make them more meaningful and effective. Additionally, aligning rewards with specific performance goals and targets can help in the selection process.
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