Monetary vs. Non-Monetary Rewards: What Are They Actually Worth?

HeyTaco April, 30 2025 4 minute read

Two high-performing employees in similar roles are due for a reward. One gets a $1,000 cash bonus. The other gets an additional day of remote work per week.

Both are grateful for their rewards, and they should be–their employer tailored them to their preferences. But there’s more happening beneath the surface.

The cash winner is inspired to keep up the good work and would like to keep earning extra cash in the future. The hybrid employee is thrilled that they found a company that hears them out and honors their desire to work remotely more often.

Each of these rewards went a long way in supporting loyal, engaged employees. Does it matter if one is motivated by money and the other is motivated by flexibility? Why is the reward that costs the company nothing more valuable in some eyes?

We’ll explore these questions and more as we break down monetary rewards and non-monetary rewards with examples, pros, and cons.

What’s the difference between monetary and non-monetary rewards?

The benefit of monetary rewards is immediate and tangible, while non-monetary rewards are more emotionally fulfilling and can have a longer-term impact.

However, with personalization, both monetary and non-monetary rewards can have emotional appeal and long-term value.

For example, someone who loves investing can feel prolonged gratitude and enhanced loyalty when offered company stock options (monetary reward). They enjoy many of the same benefits as the ambitious, growth-oriented employee who gets mentorship from a company leader (non-monetary reward).

Choosing between the two often comes down to:

Company values
Company culture
Employee preferences
The reason for the reward
Industry
Budget

Striking a balance is necessary to continue making monetary rewards sustainable and non-monetary rewards meaningful.

Monetary rewards: Examples, advantages, and drawbacks

Monetary rewards boost extrinsic motivation. The reward is an external entity driving our desire to excel.

The monetary reward we’re most familiar with is a raise–we’re rewarded for our loyalty and/or performance with more money. But as we’ll find, rewards with inherent monetary value are a relatively broad category.

Monetary rewards examples

These financial rewards include but aren’t limited to:

Bonuses
Raises
Profit sharing
Stock options
Insurance benefits
Discounts
Commissions
Educational reimbursements

You’ll notice a few of these, like insurance benefits and in certain positions, commission, are expected. Full-time employees aren’t highly motivated by them because they’re regarded as standard for their role. They’ve likely confirmed they’ll receive these “rewards” before accepting an offer.

The pros and cons of monetary rewards

Can you be extrinsically motivated to be a better collaborator? Is money all we want or need from our jobs? The answer to both is “probably not,” but these rewards still have a place at work.

Pros of monetary rewards	Cons of monetary rewards
Can motivate employees to meet specific goals and hit short-term targets	Unsustainable long-term; tends to motivate employees in shorter bursts
Most employees will easily appreciate additional financial compensation	Can feel unfair or inequitable if only select employees can attain levels of performance warranting the reward
Some monetary rewards, like bonuses, give employees freedom to spend as they like	May lead to a sense of entitlement, where employees don’t feel sufficiently recognized or rewarded without money
A tangible, external representation of an employee’s success or loyalty	On its own, a poor strategy for increasing employee engagement and job satisfaction
Some monetary rewards such as stock options can feel like they add more security to an employee’s future	Employees can feel resentful that they must do more to earn rewards that meet basic needs, like health insurance

Non-monetary rewards: Examples, advantages, and drawbacks

On the other hand, we have non-monetary rewards leveraging intrinsic motivation. When we’re intrinsically motivated to achieve something, we’re after the good feelings we get from aligned values, positivity, and growth.

When we think of non-monetary rewards, we might think of winning a title like Employee of the Month. However, the most popular picks center around fostering professional growth and supporting our total well-being.

They can cost the company some money, but aren’t financially focused.

Non-monetary rewards examples

Thanks to personalization, there are few limits on what constitutes a non-monetary reward. Here’s a list of some more common rewards:

Flexible work arrangements
Role autonomy
Extra time off
Mentorship
Training
Lateral movement
Wellness programs or resources
Office perks
Personalized experiences
Events or celebrations
Meals, coffee, or snacks
Formal recognition, like plaques or certificates

Many non-monetary rewards pay back commitment to the company’s goals by acknowledging the recipient’s personal goals and interests. It’s this factor that truly separates non-monetary from most monetary rewards.

The pros and cons of non-monetary rewards

If an employee goes above and beyond, is lunch enough? Do some of these rewards make the company look cheap or ungrateful? This is avoidable with intention and personalization.

Pros of non-monetary rewards	Cons of non-monetary rewards
Personalized rewards like flexibility and interest-based experiences can have a favorable long-term impact on employees	Some employees may not regard non-monetary compensation as a suitable reward for exceptional performance
Acknowledging an employee’s unique interests and goals increases engagement	It might take more thought, time, and effort to select a non-monetary reward
Non-monetary rewards can be more cost-effective and therefore sustainably distributed regularly	Well-known non-monetary rewards like plaques and certificates hold little to no value to some employees
Some rewards feel much more meaningful and sincere, conveying genuine appreciation	If the reward isn’t personalized and doesn’t align with the employee’s values or interests, it can be confusing or insulting
A company can reward an entire team at once, so no one feels overlooked	Certain team members may feel they deserve more than what their similarly-rewarded teammates also get

Monetary and non-monetary rewards: A side-by-side comparison

Let’s recap some key points about these two types of employee rewards.

Monetary rewards	Non-monetary rewards
Leverages extrinsic motivation	Leverages intrinsic motivation, although some rewards like gift cards have extrinsic value, too
Some can be personalized, even if limited	High degree of personalization
It’s money–everyone likes money	Makes people feel seen and valued
Excellent extra push for special short-term goals	Diverse and cost-effective enough to be given frequently
Stock options and profit sharing make employees feel like company assets	Professional development opportunities foster company loyalty
Can be financially unsustainable	Can be scaled to any budget
Can lead to entitlement or favoritism allegations	Can fall flat if not sufficiently personalized or planned

BOTTOM LINE: There’s a time and a place for monetary rewards, especially for employees who stick with the company and are consistent performers.

Non-monetary rewards remain the best way to positively acknowledge employees on a regular basis, maintaining higher engagement and morale long-term.

Non-monetary rewards ideas for teams and individuals

In case you wandered in unaware, HeyTaco is a peer recognition platform that simplifies reward-giving. It’s easy to track participation with HeyTaco, so you know:

WHEN to reward an individual or a team
WHY you’re rewarding them

Good thing, too, because timeliness and specificity are two of the most important factors in effective recognition programs that culminate in rewards.

More than a thousand companies worldwide use HeyTaco as part of a rewards program, and here are some non-monetary rewards ideas we’ve seen implemented to great success:

Volunteer Days: Employees get an afternoon to unite for a common cause and spend time together in service of others
Game night: Asynchronous teams are rewarded with virtual gaming tournaments
Learning: reward recipients get special one-on-one classes, workshops, or tutorials from a department head or experts in their field
Entertainment: Get rewarded with a subscription to Spotify or Netflix, or receive tickets to the local theater
Fitness and wellness gifts: Rewards such as gym memberships or spa treatments have both intrinsic and extrinsic value when put in the right hands

Get dozens more non-monetary rewards ideas from HeyTaco users and implement it today with your free 30-day trial.