Monetary rewards are the incentives given to the employees of the organization in the form of money. Some employees are motivated only if there is money element involved.
The monetary incentives are mostly given based on the performance of an employee. The monetary incentives given to the employee are direct benefits to the employee and is considered as an exposure to the employer.
Some of the monetary benefits, which are given by the organization are
- Profit sharing
- Stock options
- Merit pay, etc.
Non-Monetary rewards are the benefits given to the employees of the organization to increase the employee job performance, employee loyalty towards the organization, employee morale, etc. The Non-Monetary rewards as the name suggests does not involve direct money. i.e., the employee doesn’t get any money but he gets various benefits like,
- Food coupons
- Company uniforms
- Flexible timings
- Healthcare Benefits
- Life insurance policy, etc
Many studies have been conducted and found out that, the benefits which are in non-monetary form derives more benefits to the organization because it involves some form of emotional bondage with the employees which increase employee loyalty, which automatically increases job performance.