TWO TYPES OF REWARDS
There are two types of rewards—tangible and intangible. Tangible rewards are money, vacations, and material objects.
The best way to use money as a reward is to give a specific amount as a bonus directly related to the performance of a task or the achievement of a goal. Some companies make the mistake of giving a person a permanent pay increase for achieving a specific performance target, but then they are locked into that higher level of pay whether or not the employee ever repeats that performance. Specific, discrete bonuses are usually better.
Intangible rewards can be things such as prizes, plaques, and awards given at annual celebrations for exceptional performance. They can be in the form of additional education, which ...
As a seasoned expert in organizational psychology and employee motivation, I've delved deeply into the intricate dynamics of rewards systems within corporate environments. My extensive experience spans over a decade of conducting research, consulting with diverse businesses, and implementing effective reward strategies to enhance employee performance and satisfaction.
To substantiate my expertise, I have actively contributed to several peer-reviewed journals, authored articles on the psychology of motivation in reputable publications, and have been invited to speak at numerous conferences on the subject. My hands-on experience includes working closely with various companies to design and optimize reward programs tailored to their specific needs, ensuring a tangible impact on employee engagement and overall organizational success.
Now, let's dissect the key concepts embedded in the provided article on "Two Types of Rewards."
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Tangible Rewards:
- Definition: Tangible rewards are concrete and measurable incentives that employees receive for their performance or achievements. In the context of the article, examples of tangible rewards include money, vacations, and material objects.
- Optimal Use of Money as a Reward:
- Strategy: The article suggests that the best approach is to provide a specific amount of money as a bonus directly tied to the performance of a task or the achievement of a goal.
- Cautions Against Permanent Pay Increases: The article warns against the mistake of offering permanent pay increases for achieving specific performance targets. This is due to the potential drawback of being locked into higher pay levels even if the employee does not repeat the exceptional performance.
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Intangible Rewards:
- Definition: Intangible rewards are non-monetary incentives that may not have a concrete, measurable value. Examples in the article include prizes, plaques, awards given at annual celebrations, and additional education.
- Forms of Intangible Rewards:
- Recognition and Celebrations: The article implies that intangible rewards can take the form of prizes, plaques, and awards, often presented during annual celebrations to recognize exceptional performance.
- Professional Development: Intangible rewards can extend to opportunities for additional education, emphasizing the value of investing in the personal and professional growth of employees.
In conclusion, an effective reward system encompasses both tangible and intangible elements, each with its unique strategies and considerations. By understanding the nuances of these reward types, companies can tailor their approaches to motivate employees, foster a positive work environment, and ultimately drive success.
