Tangible Rewards – Importance and Meaning

What are Tangible Rewards  

Tangible rewards refer to things that bosses give employees to show appreciation for good work. These rewards can be either money or something else that is valuable. Such rewards are given to motivate employees when they achieve specific goals.  

Here, we will discover: 

• What is Tangible Reward
• Examples of Tangible Reward
• Advantages of Tangible Rewards
• Drawbacks

Examples of Tangible Reward 

Tangible rewards come in various forms, providing employees with something concrete or material. Here are some types of tangible rewards: 

1. Cash Bonuses: Direct monetary rewards for achieving specific goals or outstanding performance. 

2. Company Merchandise: Branded items such as clothing, accessories, or gadgets featuring the company logo. 

3. Certificates or Plaques: Formal recognition in the form of certificates or plaques highlighting the employee’s achievements. 

4. Time Off: Additional paid time off or flexible work arrangements as a reward for exceptional performance. 

5. Travel Packages: Offering vacation packages, airline tickets, or hotel stays as a reward for significant contributions. 

6. Technology Gadgets: Providing electronic devices or gadgets, such as tablets or smartphones, to acknowledge outstanding performance. 

7. Celebratory Events: Hosting special events, dinners, or parties to celebrate achievements and milestones. 

These tangible rewards can be tailored to meet the preferences and needs of individual employees or the overall team. 

Rewards that lack a physical presence are often intangible and may focus on experiences, recognition, or personal development. Here are examples of such rewards: 

1. Recognition and Praise: Public acknowledgment of an employee’s achievements or contributions during team meetings or company-wide communications. 

2. Flexible Work Arrangements: Offering the flexibility to work remotely, adjust working hours, or implement compressed workweeks. 

3. Professional Development Opportunities: Providing opportunities for skill-building through workshops, training programs, or courses. 

4. Public Appreciation: Featuring employees in newsletters, on the company website, or social media platforms to showcase their accomplishments. 

5. Verbal or Written Thank-You Notes: Expressing gratitude through personalized notes, emails, or verbal appreciation. 

6. Flexible Time Off Policies: Allowing employees to take additional time off or providing extra vacation days as a reward. 

7. Team Celebrations: Organizing team-building events, outings, or celebrations to foster a positive and enjoyable work environment. 

Advantages of Tangible Rewards  

Providing tangible rewards to employees in an organization comes with several benefits. The most obvious advantage is the recognition and appreciation of good performance, leading to increased motivation and sustained high productivity. 

Here are some other notable advantages: 

1. Enhanced Loyalty: Employees develop a stronger sense of loyalty to their employer as their hard work is acknowledged and rewarded, contributing to higher retention rates. 

2. Boosted Confidence: Tangible rewards contribute to increased confidence among employees, fostering active participation in meetings and encouraging them to find solutions to challenges. 

3. Focused Performance: Tangible rewards direct employee focus and performance, aligning individual and organizational goals. 

In essence, tangible rewards represent a valuable investment in both individual employees and the overall success of the company. To illustrate this, consider an employee’s experience. After receiving a gift basket for their outstanding sales, they not only surpassed their targets but also motivated their teammates to do the same. As a result, they gained respect within the department and were promoted to team lead. 

Drawbacks of Tangible Reward  

There are a few drawbacks to tangible rewards, primarily due to their short-lived impact. The motivation associated with earning such rewards may diminish as employee expectations change over time. 

Other possible downsides include: 

1. Increased Costs: Implementing tangible reward programs can raise overall business expenses. 

2. Time-Consuming: Planning and executing tangible reward programs demand time and resources. 

3. Perceived Bias: The distribution of rewards might be seen as biased or favoritism, especially if the reward system lacks consistency or is not an ongoing practice. 

Conclusion  

So, tangible rewards can be a powerful tool for recognizing and motivating employees, providing a tangible expression of appreciation. However, their effectiveness may be limited over time, and there are potential drawbacks, such as increased costs and the risk of perceived bias. Employers should carefully consider when and how to implement tangible rewards, balancing them with other forms of recognition to create a comprehensive and sustainable employee appreciation strategy. 

FAQs 

Why is it important to reward employees? 

Rewarding employees is important because it makes them feel appreciated and motivated. It recognizes their hard work and encourages them to continue performing well. 

What Are Examples of Tangible Rewards? 

Examples of tangible rewards include gift cards, bonus payments, company merchandise, and certificates. These are physical or material items that employees receive as a form of recognition. 

What Are the Possible Downsides of Tangible Rewards? 

Possible downsides of tangible rewards include their short-term impact, increased business costs, and the perception of bias if the reward system is inconsistent. 

Which Tangible Rewards Do Employees Prefer? 

Employee preferences for tangible rewards can vary. Some may prefer cash bonuses, while others may like gift cards, merchandise, or certificates. It’s important to consider individual preferences when choosing tangible rewards