Beyond pay & bonus: How rewarding your employees with non-monetary benefits is more lasting?
Compensation and benefits, whether monetary or non-monetary, are equally effective in attracting and retaining talented workers. Last year, Emirates Airlines, having crossed Dh10.6 billion in profits, rewarded their entire workforce with a six-month salary in bonus alongside their regular monthly pay, setting a benchmark for competitors that they may never be able to match. However, today amidst economic challenges backed by geopolitical risks, organisations across all industries are experiencing increased financial stress. Hence, they are turning to non-cash rewards to keep their employees happy in a sustainable way.
Non-monetary rewards and incentives that focus on recognising and reinforcing desirable actions and outcomes in the workplace, such as recognition and praise, career growth opportunities, flexible work arrangements, upskilling, and holistic well-being support, not only provide support and meet the need-based expectations of employees but also enrich the organisational culture. Here are some non-cash but effective rewards for employees when financial compensation falls short:
#1 Positive work culture
Organisations that cultivate a positive work environment through open communication, opportunities for growth, space for creativity, building strong team relations, and a sense of belonging are considered among the most preferred workplaces today. Positive work culture is a non-cash reward that encompasses the intangible benefits contributing to employee satisfaction and overall well-being. By fostering a supportive and respectful environment, enabling effective communication channels, work-life balance, and opportunities for growth and development, organisations can enhance their talent attraction and retention efforts without relying solely on monetary compensation.
Gallup’s recent survey revealed that 59 per cent of the global workforce is disengaged. Therefore, implementing these non-monetary rewards can effectively eliminate disengagement elements such as ‘quiet quitting’, as they fulfil employees' needs within their current organisation, and leading to enhanced overall job satisfaction.Thus, fostering a positive work culture can be seen as a form of non-cash reward that enhances employee engagement, motivation, and retention within workplaces.
#2 Career progression opportunities
In today's rapidly evolving workplaces, talent increasingly seeks continuous role changes to align with their ambitious career goals. As organisations adapt to these changes, offering non-cash rewards such as career progression opportunities can enhance the chances of retaining skilled talent in a sustainable way. The evolving nature of work has increased chances for employees to grow and advance within the organisation. It's important to offer these opportunities without just depending on salary or bonus. How? By consistently tracking employees' needs and career objectives, ideally during both annual performance reviews and quarterly check-ins, organisations can offer them various opportunities such as promotions, lateral moves for skill enhancement, participation in mentorship programmes, access to leadership development initiatives, and resources for training and education. These non-monetary, intangible rewards—such as personal growth, professional development, and job satisfaction—not only contribute to employees' career progression but also enhance overall engagement, productivity, and foster a healthy work culture within the organisation in the long run.
#3 Flexible work arrangements
Only 40 per cent of women in the Middle East return to work after a career break, including those in leadership roles. Why? Lack of flexible work arrangements, support, and well-being programmes in the workplaces. Organisations can unlock this untapped talent by offering flexible work arrangements, as an increasing share of workers in the region desire hybrid or remote work options. This flexibility is a non-cash reward, allowing employees to manage their work schedules and environments to fit their personal needs without additional monetary compensation like overtime pay for extending work hours. In addition to this, employees enjoy better work-life balance, reduced commute time and expenses, increased autonomy, and greater job satisfaction.
Offering extended flexible work options, such as remote work, flexible timings, and four-day workweeks, enables organisations to boost women's workforce participation, ultimately driving significant economic growth in the MENA region. Therefore, regarding flexible work arrangements as a non-cash reward for employees can contribute to fostering a healthy culture and promoting engagement within the organisation.
#4 Upskilling in emerging technologies and AI
A recent survey by ACCA revealed that 49 percent of individuals in the Middle East are concerned about the impact of AI on their roles, while 57 percent feel they are not upskilling according to the needs of future workplaces. Therefore, they are seeking job role enrichment to prepare for future workplaces. By providing opportunities for skill development in AI, autonomy, decision-making skills, automation for challenging tasks, and involvement in meaningful conversations and projects, organisations can offer intrinsic rewards such as personal growth, increased job satisfaction, and a sense of accomplishment. By creating robust learning platforms for employees, where they can learn new tools, technologies, and skills needed for emerging work requirements, organisations can boost employee motivation, engagement, and retention, making job role enrichment an effective non-cash reward strategy. In addition to this, fostering team collaboration and cross-functional learning culture can be an bonus non-monetary benefit for employees.
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#5 Employee wellness initiatives
The ACCA survey also highlighted that 70 per cent of workers in the region require better mental health and well-being support, with 37 percent of them considering leaving their current organisation if their mental health continues to suffer. Therefore, offering non-cash wellness initiatives can enhance employees' holistic well-being. Implementing regular wellness check-ins and conducting happiness surveys to identify work-pressure levels are crucial steps in addressing unmet needs among employees. Additionally, initiatives such as wellness challenges, fitness classes, mindfulness programmes, and mental health support resources can provide employees with the support they need. Furthermore, providing ergonomic workstations and offering flexible work arrangements can accommodate their personal wellness needs.
Furthermore, by investing in wellness initiatives, organisations demonstrate their commitment to employee health and happiness, which can result in increased job satisfaction, productivity, and retention. Therefore, wellness initiatives are considered non-cash rewards that contribute to overall employee well-being and engagement.
Not all workplace initiatives necessitate substantial budgets. With a sustainable approach and an effective employee value proposition, organisations can realise that attracting and retaining talent hinges on effectively addressing existing issues and providing initiatives and programmes tailored to their employees' evolving career needs. By doing so, organisations instil hope for a brighter future among employees and extend support as required, thereby paving the way for long-term retention.