Tangible rewards are material rewards given by the manager or the company to its employees as a token of appreciation to recognize their efforts towards the company. Any monetary or non-monetary rewards that an employee can be benefitted from are tangible rewards.
Examples of tangible rewards are:
Here’s an example to understand how companies can use tangible rewards.
Anita has successfully achieved her monthly sales target, and her manager decides to recognize this accomplishment by offering her an Amazon gift card. This also helps the manager in encouraging other employees. This type of recognition is called tangible reward.
Tangible rewards are materialistic rewards that are concrete, visible, and measurable. They also have some monetary value. On the contrary, intangible rewards are non-materialistic rewards that are not measurable, invisible, and do not have a monetary value.
Intangible rewards are non-financial incentives given to employees in return for their efforts. Following are some examples of it.
Offering such types of rewards has many benefits for both the employee and the organization. They are:
These rewards do have some drawbacks. As employee expectations change, the motivation to earn these rewards also changes, and the same rewards won’t entertain them in the long run. Other possible drawbacks are: