Tangible Rewards

Unwrapping Recognition: A Guide to Tangible Rewards

Exploring the World of Tangible Rewards: An Overview

Understanding Tangible Rewards

Tangible rewards represent tokens of appreciation bestowed upon employees by employers or managers in acknowledgment of exemplary performance. These rewards serve as motivational tools, contingent on the achievement of desired outcomes. Whether financial or non-financial, tangible rewards hold material value and significance, benefiting the employee directly.

Examples of Tangible Rewards

Materializing Appreciation

Tangible rewards come in various forms, including:

1. Pay Raise
2. Cash Bonus
3. Gift Card (Amazon, local spa, restaurant, etc.)
4. Gym Membership
5. Free Merchandise (apparel, watch, Apple AirPods, concert tickets, etc.)
6. Food Basket

To illustrate, consider Trisha, who surpasses her quarterly sales goal. In recognition, her manager rewards her with a substantial gift basket filled with local treasures, motivating the entire sales team. This serves as an example of a tangible reward.

Contrasting Tangible and Intangible Rewards

Beyond the Material Realm

While tangible rewards are concrete, intangible rewards encompass praise, recognition, training program admission, coaching, or flexible work hours. For instance, if Trisha receives public praise from her manager during a company-wide meeting, it qualifies as an intangible reward.

The Upsides of Tangible Rewards

Investing in Recognition

The advantages of tangible rewards in an organizational setting are manifold:

1. Recognition and Appreciation: Tangible rewards visibly acknowledge and appreciate good performance, boosting motivation.
2. Enhanced Loyalty: Employees develop deeper loyalty due to appreciation, positively impacting retention rates.
3. Boosted Confidence: Recognition fosters confidence, empowering employees to actively contribute and find solutions.
4. Focused Performance: Tangible rewards redirect employee focus, contributing to overall organizational performance.

In Trisha’s case, the gift basket not only acknowledged her sales achievement but also elevated her status in the department, showcasing the broader impact of tangible recognition.

Navigating the Downsides of Tangible Rewards

Short-Lived Motivation

Despite their advantages, tangible rewards pose a few potential downsides:

1. Short Shelf Life: Motivation derived from tangible rewards may diminish over time as employee expectations evolve.
2. Increased Costs: Implementing tangible reward programs can elevate business costs.
3. Planning and Execution Time: Program planning and execution demand time and effort.
4. Perceived Bias: Uneven or inconsistent reward distribution may be perceived as bias or favoritism.

Employee Preferences in Tangible Rewards

Decoding Employee Desires

Understanding employee preferences for tangible rewards involves recognizing individual tastes, expectations, and motivations. Research by Incentive Concepts provides insights:

1. 62% Prefer Tangible Rewards: A majority favors tangible rewards, even if small, over recognition or intangible rewards.
2. Cash Dominates Preferences: Cash is the preferred reward, with gift cards following closely.
3. Choice Matters: Employees value the ability to choose their rewards from various options.
4. Presentation Experience: The experience of receiving an award adds to its value.

It is crucial to note that while tangible rewards have their merits, they should complement rather than replace intangible rewards like promotions or leadership roles, which are more adept at fostering long-term employee engagement, commitment, and satisfaction.