15 Non-Financial Rewards to Motivate Employees Throughout the Cost of Living Crisis

With the cost of living rising faster than wages, many organisations are looking for non-financial rewards to motivate employees and help them accommodate rising costs

The cost of living crisis is something that is affecting all of us to one degree or another. It’s certainly taking a very real toll in terms of stress, making an impact on our employee’s mental health and financial wellbeing. Whether or not your employees are talking about it, they are more than likely feeling the pinch – and it may be affecting their morale and sense of security at work.

The latest studies show more people than ever are experiencing financial distress:

• Half of employees worry about money at least once a week
• Shoppers face £380 hike in average grocery bills
• One in seven Brits say they struggle to make ends meet

While employees are feeling increased financial pressure on an individual level, companies across the uK are experiencing their own struggles. Beyond appropriate remuneration, most organisations can’t offer pay increases to match inflation (at the time of writing, UK inflation had hit 9%). So instead, many are turning to non-financial rewards to support their employees.

Non-monetary employee rewards are the non-cash benefits that organisations provide to their employees. Examples include summer working hours, subsidised gym memberships, free meals or employee discounts.

Employee reward and recognition has always been an important part of an organisation’s employee experience strategy. In fact, Reward is one of 5 universal drivers in People Insight’s model of employee engagement. Now, the focus is on non-financial employee rewards that can support people during the cost-of-living crisis.

 Let’s explore 15 such awards that have been shown to make a real impact on employee engagement, performance and morale.

15 Non-Financial Rewards to Motivate Employees

1. Flexible working
2. Summer hours
3. Birthdays off
4. Free meals and snacks
5. Financial wellbeing support
6. Employee discount scheme
7. Subsidised gym membership
8. Recognition and appreciation
9. Career development opportunities
10. Meaningful work and purpose
11. Collaborative and inclusive culture
12. Employee empowerment and autonomy
13. Communication and feedback
14. Time to work on their own projects
15. Time for volunteer work

Below, we share how these non-financial rewards could work for you and your team.

1.Flexible working

This is a great example of a non-financial incentive to motivate employees. Flexible working means that employees can choose when and where to work in order to flex their working pattern around other commitments. Hybrid or flexible working is proven to support productivity, retention and employee engagement. In addition, working from home for part or all of the week can help employees save money on travel.

2. Summer hours

Summer hours are a popular non-financial employee reward that allows employees to reduce their working hours during the summer. This usually means that from June to August employees can finish up a few hours early on a Friday. Some organisations invite colleagues to work an extra hour one day a week in order to finish earlier on a day of their choice.

Consultancy firm PwC recently announced that employees can finish work at lunchtime on Friday, after piloting the initiative last year. PwC surveyed staff before introducing shorter hours, with three-quarters of staff reporting that it “impacted their general wellbeing to a great extent”. Alongside wellbeing benefits, this employee reward idea is a significant recruitment and retention tool too.

3. Get your birthday off

Giving people a day off for their birthday is a simple non-financial reward to motivate employees. Organisations like GoCompare, KPMG, Dunelm and Virgin Media all offer this perk. Dunelm have extended this to include other milestones such as a child’s first day at school.

4. Meals, snacks and treats

30% of UK companies offered free refreshments and meals at work prior to 2020. Snacks and meals are still a desirable perk for employees, however our office set-up isn’t what it was. Many companies have moved away from traditional offices into co-working spaces like Work.Life, where People Insight’s office is based. Alongside other perks, Work.Life provide members with breakfast, snacks, fruit and Thursday beer & pizza.

Additionally, with hybrid working on the rise, organisations must consider how to include those working from home. Companies like Huggg, Healthy Nibbles or Just Eat for Business all provide snacks and treats for remote teams.

5. Support for financial wellbeing

Financial wellbeing support is critical right now. Financial wellbeing means feeling in control of your finances, comfortable meeting current and future obligations, and secure about your financial future. Organisations can support this by providing help with:

• Financial literacy (help budgeting, improving credit rating etc)
• Managing debt
• Longer-term planning for savings, investments and retirement

Employee needs will differ depending on personal circumstances, life stage and goals so your financial wellbeing support must be equally flexible. Employee Assistance Programmes (EAPs) are a useful option for businesses as they offer employees support with mortgage advice, debt management, financial planning and more.

On top of that, give employees access to a platform like Bippit for accessible, human financial advice. Tools like these also offer targeted financial support at key moments in working lives such as ahead of maternity leave, retirement or when moving house.

6. Discounts on everyday essentials

Employee discount schemes are a popular non-financial reward to motivate employees. These discounts are not just about encouraging employees to treat themselves. A wide-ranging employee discount programme can help employees save on essentials like groceries or school uniforms, as well as making holidays, home improvements or cinema trips more affordable.

If you already have a scheme like this, ensure you are communicating about it often and promoting its value to employees. Look at usage rates over the last 6 months. If these are low, it may be that employees aren’t aware of the scheme, are having trouble accessing it, or need something else. Consult your employees to understand how you can make this scheme more valuable.

Similarly, if you are planning to offer employee discounts first run a quick pulse survey and invite feedback and suggestions to shape your scheme.

7. Subsidised gym membership

Consider how your organisation could subsidise or support gym memberships for colleagues as a non-financial reward to motivate employees. Gym and sport club memberships are likely to be amongst the expenses people cut back on as the cost-of-living continues to rise. Yet alongside its benefits for physical health, regular exercise has been proven to improve mental wellbeing and reduce stress so is well worth investing in as a business.

8. Recognition and appreciation

One of the most effective non-financial rewards is simply recognising and appreciating the efforts of your employees. Acknowledging their hard work and accomplishments, whether privately or publicly, fosters a sense of value and boosts morale. By implementing a robust recognition program, employees feel motivated to perform at their best, knowing that their contributions are recognised and appreciated.

9. Career development opportunities

Investing in the professional growth and development of employees is a valuable non-financial reward that can significantly impact their job satisfaction and company loyalty. Providing access to training programs, mentorship, workshops and conferences empowers employees to enhance their skills and knowledge, leading to personal growth and advancement within the organisation. By offering these opportunities, your company can demonstrate your commitment to nurturing talent and fostering long-term career success. What’s more, as a company, you also benefit from more developed, skilled employees.

10. Meaningful work and purpose

Engaged employees find meaning in their work and believe that their contributions align with a greater purpose. Assigning employees tasks that align with their skills and interests, and clearly communicating the company’s mission and values, fosters a sense of purpose and fulfilment. When employees understand how their work positively impacts the organisation, their motivation and commitment soar. This is particularly true of generation Z – give them a sense of purpose and they will come to work happy and bring their A game. 

11. Collaborative and inclusive culture

Creating a collaborative and inclusive work culture is essential for employee engagement. Encouraging teamwork, fostering open communication and valuing diverse perspectives not only improves employee morale but also enhances innovation and problem-solving. Employees feel a sense of belonging and psychological safety, resulting in increased engagement and overall job satisfaction.

12. Employee empowerment and autonomy

Employee empowerment and autonomy can be powerful non-financial rewards for employees because they tap into the intrinsic motivators and psychological needs of individuals, ultimately leading to higher job satisfaction, engagement, and motivation. Employees like to feel that they are trusted – they want to be given the freedom to do their job in the way they see fit. Empowering employees and giving them increased autonomy can result in increased ownership and responsibility, enhanced job satisfaction, improved trust and collaboration and increased loyalty and staff retention.

13. Communication and feedback

In recent years, there has been a movement towards continuous performance management. This involves regular 1:1s between manager and employee. The younger generation are keen for more communication, regular conversations and interactions with management and increased feedback (whether this is positive feedback, or something the employee should work on). The good news is, this costs nothing but time and could result in increased motivation and productivity.

14. Time to work on their own projects

Many companies these days are giving employees the time and spacce to work on their own projects. These companies are finding that it is increasing engagement and motivation, while fostering creativity and innovation. Projects give employees the freedom to explore new ideas, experiment an think creatively while allowing them to step away from tehir day-to-day tasks. They are also able to develop skills that will benefit not only them, but the company at large.

15. Time for volunteer work

Similarly, companies are increasingly granting employees time to volunteer for a purpose near and dear to them. This means a lot to employees while demonstrating that your company cares, too – not everything begins and ends with the bottom line. It’s a great way to demonstrate the company’s commitment to social impact and corporate social responsibility.

How do your people feel about financial wellbeing at work?

Before introducing financial wellbeing support, it’s a good idea to consult employees about the challenges they are facing and the help they need. People Insight’s expert team can help you run a wellbeing survey to inform the initiatives you put in place.

Learn how People Insight’s THRIVE model of wellbeing can help you measure and improve financial wellbeing.