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Grasp the worth of monetary and non-monetary rewards to improve motivation, engagement, and long-term retention and satisfaction.
In today’s competitive workplace, organizations are constantly looking for better ways to motivate, engage, and retain talent. Among the most debated tools are monetary and non-monetary rewards. While financial incentives are traditional motivators, intangible benefits are increasingly seen as valuable. But what are these rewards truly worth, and how can employers strike the right balance?
Before designing a reward system, it helps to understand the two main types of rewards and how they impact employees differently. Each appeals to different human needs and motivations. Recognizing the distinct roles of both reward types helps create a more comprehensive and effective rewards strategy.
Monetary rewards are tangible, financial incentives that provide direct economic benefits to employees. These include:
These rewards are straightforward and typically appreciated, addressing immediate financial needs and offering clear value.
Non-monetary rewards are intangible and enhance the employee experience without involving direct cash payments. These can include:
Non-monetary rewards often meet emotional and psychological needs, contributing to employee fulfillment and long-term satisfaction.
A reward’s effectiveness is strongly influenced by psychology. To motivate employees consistently, employers must understand what drives both external and internal motivation.
Monetary rewards are tied to extrinsic motivation—doing a task to earn a reward or avoid a penalty. These rewards help meet basic needs such as:
As described in Herzberg’s Two-Factor Theory, financial rewards are considered “hygiene factors”—their absence causes dissatisfaction, but their presence does not automatically ensure satisfaction.
Non-monetary rewards stimulate intrinsic motivation—the internal satisfaction gained from the work itself. These rewards support higher-order needs:
When employees feel valued and see their work as meaningful, they are more likely to be motivated and engaged over the long term.
Understanding this psychological dynamic allows companies to reward employees in ways that not only meet their needs but also inspire sustained effort and loyalty.
Both monetary and non-monetary rewards offer benefits, but each has its limitations. A balanced use of both helps mitigate the weaknesses of each.
Advantages:
Limitations:
Advantages:
Limitations:
Using both types of rewards together allows organizations to achieve immediate results while building a culture of trust and commitment over time.
Not all employees value rewards in the same way. Preferences often depend on personal and generational factors, as well as work environment.
Individual differences: Financial needs, life stage, personality, and career goals
Generational trends:
Work environment:
When employers understand these differences, they can tailor rewards to improve relevance and effectiveness.
Creating an impactful reward system requires more than just offering incentives—it involves careful planning, ongoing feedback, and alignment with organizational goals.
To maximize effectiveness, companies should:
When these practices are followed, reward systems become meaningful tools that support employee satisfaction and retention.
The true worth of monetary and non-monetary rewards lies in their ability to meet both financial and psychological needs. While cash incentives drive short-term performance, non-monetary rewards create lasting engagement, loyalty, and workplace satisfaction. Organizations that listen to their employees and apply a balanced, thoughtful approach will be best positioned to retain top talent and support long-term success.
Ready to elevate your rewards strategy? Schedule a demo with Assembly today and discover how to combine the best of both worlds to keep your workforce motivated and committed.
Monetary rewards refer to direct financial compensation such as bonuses, raises, or profit-sharing. Non-monetary rewards include non-cash incentives like recognition, flexible schedules, and career development that enhance the work experience.
Non-monetary rewards tend to be more effective for long-term motivation and engagement because they align with employees’ values and support intrinsic motivation. However, monetary rewards still play an important role, especially in meeting basic needs or recognizing exceptional performance.
Employees often value non-monetary rewards because they foster a sense of purpose, recognition, and personal growth—elements that contribute to job satisfaction and loyalty. These rewards help build a positive culture and reinforce that their contributions matter beyond just financial gain.
Companies can implement a balanced system by offering both financial rewards and non-monetary incentives tailored to employee preferences, roles, and stages of life. Gathering regular feedback and aligning rewards with company values ensures ongoing relevance and fairness.
Get the foundational knowledge on creating an employee recognition program that boosts employee engagement and helps them feel valued.
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Yes, at Assembly, security is a top priority. Each quarter, we have ongoing security work that is everyone’s responsibility. While we maintain a strong security posture, it was important for us to prove to our customers that we do everything we claim to do. This led us to pursue a SOC 2 Type II report that would provide evidence of our compliance with industry gold-standard security practice.
There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.
Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.
The minimum agreement term is a 12-month subscription.
We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.
At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.
The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.
We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.
For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.
If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.
If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at support@joinassembly.com.
Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!
While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.
Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.
Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.
That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.
They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.
No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.
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