What are examples of non-monetary recognition?

Specific public thanks, a handwritten note, an afternoon off, first choice of the next project, a mention in the company meeting, a symbolic gift such as a planted tree. The common thread is that the value is in the meaning rather than the price.

Why do employees prefer non-monetary recognition?

In the surveys this site uses, 65% say they do. The likely reason is that cash reads as payment and payment reads as owed, while a specific non-cash gesture reads as somebody having thought about you in particular.

Is non-monetary recognition just a way to avoid paying people?

It is if pay is the problem. Recognition of any kind does not compensate for a below-market salary, and staff can tell when it is being asked to. It works on top of fair pay, as the thing pay cannot do.

Recognition glossary

Non-monetary recognition

Non-monetary recognition is acknowledgement of work that carries no cash value: public thanks, a handwritten note, time off, a more interesting assignment, or a symbolic reward such as a tree planted in the recipient’s name.

The cheapest recognition to give is frequently the most expensive to fake, which is why non-monetary recognition works when it works.

What it is, and the trap in the name

Non-monetary recognition is defined by what it lacks, which makes it sound like the budget option. The more useful framing is that it is recognition where the value has to come from the message, because there is nothing else to carry it.

A £50 voucher with a vague note still delivers £50. A handwritten note with a vague message delivers nothing at all. This is why non-monetary recognition tends to be either very good or entirely forgettable: it cannot coast.

The forms it takes

Public thanks, which is the default and the most scalable. A specific sentence in a channel, from a colleague or a manager, costs nothing and is the bulk of what a recognition culture consists of.

Time and choice. An afternoon off after a launch, first pick of the next project, a conference the person wanted to attend. These cost the company something and the recipient can feel it, without any of it being cash.

Symbolic gifts. A book with an inscription, a team lunch or a tree planted in somebody’s name. The object is a token; the thought behind it is the gift. The non-cash incentives page goes through the options and what each one signals.

Development. A mentor, a stretch assignment or a place on a course. The most under-used form, and the one that most directly says “we expect you to be here in two years.”

Why it is preferred, mostly

The 65% figure comes up repeatedly on this site because it is striking. Given the choice, nearly two thirds of employees say they would rather have a non-cash incentive than the equivalent in money, and the question is why.

The likely answer is about what the reward says. Cash says “you are owed this,” which is a fine thing for a salary to say and a strange thing for a thank you to say. A non-cash gesture chosen for the person says “somebody thought about you,” and that is closer to what recognition is for. The research on intrinsic and extrinsic motivation adds that money tied to praise tends to make the praise feel transactional, and a transaction is easy to stop caring about.

When it fails

Two ways. The first is when it stands in for pay that should be higher. Staff on below-market salaries receiving branded water bottles draw the obvious conclusion. The second is when it becomes generic: the same mug for everyone, the same “great work” message, no name attached to any specific thing. The creative ideas on this site are useful as a list to steal from, on the condition that each one is adapted to the person it is for.

What it looks like

A manager gives an engineer the choice of the next project after a hard quarter, and says in front of the team why she is getting first pick.
A colleague writes a two-paragraph note about what it was like to be on the receiving end of somebody’s code reviews, and reads it out at the team retro.
Each seed a colleague gives in Evergreen counts towards a real tree, so a thank you leaves something behind that neither party could have bought for themselves.

Questions people ask

What are examples of non-monetary recognition?: Specific public thanks, a handwritten note, an afternoon off, first choice of the next project, a mention in the company meeting, a symbolic gift such as a planted tree. The common thread is that the value is in the meaning rather than the price.
Why do employees prefer non-monetary recognition?: In the surveys this site uses, 65% say they do. The likely reason is that cash reads as payment and payment reads as owed, while a specific non-cash gesture reads as somebody having thought about you in particular.
Is non-monetary recognition just a way to avoid paying people?: It is if pay is the problem. Recognition of any kind does not compensate for a below-market salary, and staff can tell when it is being asked to. It works on top of fair pay, as the thing pay cannot do.