Tangible Rewards are physical rewards or bonuses, such as gift cards or food hampers, (as opposed to intangible rewards such as public recognition). Organizations are increasingly using performance-contingent tangible rewards to motivate their employees. Tangible rewards are non-cash rewards that have monetary.

Tangible rewards are offered as a retention strategy; this is because they motivate the employee to perform their highest in their roles. It is seen as a retention strategy also because it ensures employees that they will be rewarded for their hard work.

A recent survey  by the Incentive Federation indicates 84% of surveyed U.S. organizations  offer tangible rewards, spending more than $90 billion annually.

Advantages of tangible rewards

There are various advantages of offering  tangible rewards to employees in an organization, the most prominent one being that it expresses and recognizes appreciation for good performance. This show of appreciation tends to translate into higher employee motivation, which leads to high performance.

With tangible rewards:

• Employee’s confidence grows stronger, which in turn encourages them to contribute more in meetings and find solutions to problems.
• Employees are directed to have focus and perform better at their roles.
• Employees become more loyal.

Generally, tangible rewards are a great investment for both the employee and the employer.