Meaning & Definition
Tangible rewards are physical, concrete items or incentives provided to individuals in recognition of their achievements, performance, or contributions. These rewards are typically given as part of a compensation package or in recognition of specific accomplishments within an organization. Tangible rewards can take various forms, and they are used to motivate, incentivize, and acknowledge the efforts and achievements of employees, customers, or other stakeholders.
Examples of tangible rewards in different contexts include:
- Employee Compensation
Tangible rewards for employees often include salary, bonuses, and stock options, which are concrete forms of compensation for their work.
- Recognition Awards
Organizations may present tangible awards such as plaques, certificates, trophies, or gifts to employees who have achieved exceptional performance or milestones.
- Sales Incentives
Sales professionals are frequently offered tangible rewards such as cash bonuses, trips, merchandise, or gift cards for achieving or surpassing sales targets.
- Employee Benefits
Benefits such as healthcare coverage, retirement plans, and stock options can be considered tangible rewards as they have a concrete financial value for employees.
- Customer Loyalty Programs
Customers who accumulate points or make repeat purchases in loyalty programs may receive tangible rewards such as discounts, free products, or exclusive merchandise.
- Safety Incentives
Some organizations offer tangible rewards to employees for maintaining a safe workplace. These can include cash bonuses, gifts, or other incentives.
- Service Awards
Long-serving employees are often recognized with tangible rewards like watches, plaques, or commemorative gifts to celebrate their dedication and tenure.
- Performance Bonuses
Organizations offer tangible cash bonuses to employees based on their individual or team performance, often tied to achieving specific goals or targets.
- Gifts and Prizes
Businesses may provide tangible rewards in the form of gifts, merchandise, or prize items to employees, customers, or contest winners.
Tangible rewards serve as motivators and incentives, and they can have a significant impact on individuals’ morale, motivation, and job satisfaction. They are seen as immediate and concrete forms of recognition for achievements, and they provide individuals with a sense of accomplishment and appreciation.
However, organizations should also consider non-tangible rewards, such as recognition, praise, and opportunities for personal growth and development, as they play a vital role in employee motivation and engagement. The most effective rewards programs often include a mix of both tangible and intangible rewards to cater to various preferences and motivations.