Cash Bonuses Vs. Rewards For Employees: Which Is Better?
25 August 2023
In a competitive business environment, careful considerations must be made to acquire the best out of your workforce. Attracting and retaining outstanding performers and improving employee engagement can be achieved in several ways, ranging from work benefits to greater flexibility.
The days when only the financial perks dazzled employees’ eyes are long gone. Now, when people are choosing a place to work, business culture and work-life balance, as factors, have risen dramatically in importance. A good company culture not only rewards and recognises its employees’ hard work and efforts but also helps improve their quality of life. When employees are rewarded for their performance and contribution, they feel ownership and are willing to work just as hard on their following projects. In addition, Pluxee Benefits & Rewards Programs connect them to the organisation, elevate performance, and increase the likelihood they’ll stay. Employees stated that receiving personal praise from a boss or organisation was the best incentive to accomplish outstanding work in a survey.
Encashing Employee Benefits
Cash rewards often get transferred with a paycheck and go largely unnoticed in direct deposit, flowing into the general pool, along with salary. Cash isn’t as memorable, and it doesn’t provide a unique experience as much as non-cash rewards, like gift cards, do. Extra money is great, but most people can find a practical use for it before the money even hits their bank account. It’s significant to note that money, while being a genuinely motivational force, is not the only aspect that can drive people to work hard and do well. One reason conventional approaches fail is that they neglect the fact that the workplace is continually evolving and shifting. The impersonal nature of cash bonuses makes it feel like a mere formality for employees, who, as fine performers, might be looking for something more expressive.
Rewards for Employees
63% of employees who feel recognised are more likely to stay in the organisation for a more extended period of time as it makes them feel valued. In addition, rewards for recognition are successful because they emphasise the positives and show employees that what they do matters. Thus, implementing a rewards and recognition programme aids in boosting employee engagement, which has numerous advantages for the business, including greater productivity and staff retention. Leaders in the industry are aware of how recognition can influence employee engagement. Therefore, implementing a recognition programme is the simplest solution for a company with poor engagement rates. Businesses, in general, agree with this statement to the extent of 72%. Non-monetary rewards might be perceived as more valuable by employees as compared to cash awards as they seem to be more ‘thought-through’, ‘personalised’ and ‘meaningful’. In addition, employees tend to appreciate the efforts made by the organisation in arranging for the rewards and not just the money spent.
The Bottom Line
Traditionally considered a ‘no-brainer’ form of reward, cash bonuses are falling out of favour of employees, reducing their impact on employee motivation benefits. It is time for organisations to move away from the tradition of cash bonuses and start embracing more diverse forms of non-monetary rewards that are likely to be more helpful in driving employee motivation. 79% of millennials surveyed believe increasing rewards would make them more loyal to their employer. Pluxee understands the value of gifting over financial bonuses. Their portfolio of giving solutions is built on three cornerstones: versatility, ease, and personalisation. Pluxee gift cards are the way to go for companies, even when they don’t plan to follow an incentive or reward strategy. It’s a mechanism that can help an employee’s quality of life and form the foundation of a workplace culture that puts the well-being of its employees front and centre.