NONMONETARY REWARDS

Most people believe rewards come only in monetary forms. In reality, you can reward people for doing something without offering money, even if you have no formal authority. You can give nonmonetary rewards that cost you only time and a little effort.

The idea of nonmonetary rewards is not new but is often overlooked in the business world. Frederick Herzberg and Abraham Maslow, both management specialists, have developed useful theories on the topic. Perhaps the greatest practitioner of the nonmonetary reward is the military; it continually offers people nonmonetary rewards.

Several nonmonetary rewards exist, such as praising people to their boss, writing a letter of appreciation and sending it to their management, and sending a thank you card. You can also take people to lunch or even dinner, or you can give them tickets to a social event. You may simply give them a pat on the shoulder or a handshake. Any of these rewards are appreciable for a job well done.

The positive side for rewarding people for their help is that it serves as an investment. The next time you need their help, they’ll remember the reward and will continue the fine support.

for Determining Nonmonetary Rewards

• Identify the principal values of the organization.
• Understand the history behind the types of awards given.
• Develop objective criteria for determining who should receive what reward.
• Maintain objectivity in administering the evaluation criteria.
• Determine the frequency and overall value of the reward.