What are Intangible Rewards?

Intangible rewards are those rewards which do not have material value but are aimed to serve as motivators to recognise an employee’s good efforts and make him / her feel encouraged to further deliver peak performance. Intangible rewards can include praises, “thank you” notes, encouragement notes etc., from the senior management, public acknowledgement of an employee’s efforts, a lunch / dinner outside, opportunities for personal development, etc.

Intangible rewards serve as benefactors for both the employees and for the organizations that they serve in the sense that they assist the organizations objectives in the long run by motivating employees to put in extra efforts, and they do not cost much. Intangible rewards also boost employee retention.

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