What are non-monetary rewards?

Non-monetary rewards are benefits that organizations give employees to acknowledge contributions or achievements without paying cash directly.

They can include extra time off, learning opportunities, experiences, flexibility, company merchandise, charity donations made on an employee's behalf, or special privileges such as choosing the next team activity.

For example, after a demanding product launch, a team might receive an extra day off, while an employee who mentored new hires might be offered a seat at an industry conference.

Non-monetary rewards are sometimes called intangible rewards, although many of them, such as merchandise or experiences, are very tangible.

Non-monetary rewards are valuable because they often feel more personal and memorable than cash, especially when they reflect what employees genuinely care about.

Why are non-monetary rewards important?

Create lasting memories

A team dinner or a concert ticket is often remembered long after a small cash bonus has been spent.

Show personal attention

Choosing a reward that reflects an employee's interests demonstrates that the organization knows and values them as a person.

Support growth and wellbeing

Learning budgets, mentoring opportunities, and extra rest benefit both the employee and the organization.

Work with limited budgets

Many non-monetary rewards, such as flexible hours, a special project, or public recognition, cost little or nothing.

Reinforce culture

Rewards such as branded merchandise, team experiences, or charity donations can express company identity and values.

Types of non-monetary rewards

Category	Description	Examples
Time	Additional rest or personal time	Extra day off, early Friday finish, birthday off
Learning and growth	Opportunities to develop skills	Courses, conferences, books, mentoring sessions
Experiences	Activities employees can enjoy	Event tickets, cooking class, spa day
Flexibility	More control over how and when work happens	Flexible schedule, remote work day
Team celebrations	Shared moments for collective achievements	Team dinner, offsite, game night
Merchandise	Physical items, often branded	Hoodies, mugs, desk accessories
Charity	Donations on the employee's behalf	Donation to a cause the employee chooses
Responsibility and visibility	Opportunities that signal trust	Leading a project, presenting at an all-hands
Privileges	Small perks with symbolic value	Best parking spot, choosing the team playlist

Non-monetary reward ideas by budget

Budget level	Reward ideas
Free	Public shout-out, choosing the next team activity, leading a meeting, flexible start time
Low cost	Coffee with a leader, book of choice, branded merchandise, lunch delivery
Medium cost	Online course, event tickets, team dinner, extra day off
Higher cost	Conference attendance, certification funding, team offsite, wellness retreat

Low-cost rewards can be just as meaningful as expensive ones when they are personal and well-timed.

See non-monetary rewards in action

Explore a rewards catalog

Non-monetary rewards are easier to offer consistently when employees can browse them in one place and redeem them with points.

With Karma, organizations can add custom rewards like "Day off," "Movie time," or "Dinner for two" alongside merchandise and charity donations.

Try "Explore company rewards" to see how non-monetary rewards appear in a catalog.

Non-monetary rewards vs. monetary rewards

Non-monetary rewards	Monetary rewards
Provide experiences, time, growth, or items	Provide cash or cash equivalents
Often more personal and memorable	Flexible and universally understood
Can cost little or nothing	Have a clear financial cost
May require more effort to organize	Easy to distribute
Examples: day off, course, team dinner	Examples: bonus, gift card, profit sharing

Gift cards sit between the two categories. They have a cash value but let employees choose a personal experience or item.

Many organizations offer both types and let employees decide. Learn more about monetary rewards.

How to choose non-monetary rewards

Ask employees

Short surveys or conversations reveal what people value. Some prefer time; others prefer learning or experiences.

Offer variety

A mix of options accommodates different interests, family situations, and locations.

Consider remote employees

Make sure rewards are available to people who do not work in the office, such as digital courses or delivered items.

Keep fairness in mind

Rewards like flexible schedules should not create unfair differences in access to working conditions.

Connect rewards to recognition

When an employee receives a reward, they should know which contribution it acknowledges.

Check tax and legal rules

Some non-cash rewards may still be taxable as benefits in certain countries. Confirm local rules before launching a program.

Common mistakes with non-monetary rewards

Assuming everyone wants the same thing

A team happy hour may not appeal to everyone.

What helps: Let employees choose from several options.

Offering rewards that are hard to use

Event tickets in another city or vouchers with many restrictions can feel like a burden.

What helps: Choose flexible, accessible rewards.

Treating rewards as a substitute for pay

Non-monetary rewards cannot compensate for below-market salaries.

What helps: Use them on top of fair compensation.

Forgetting to follow through

A promised day off that never gets scheduled damages trust.

What helps: Track redemptions and fulfill them promptly.

How Karma supports non-monetary rewards

Karma lets organizations build a rewards catalog that reflects their culture, combining non-monetary rewards with gift cards and charity donations.

Create any custom reward

Admins can add rewards such as an extra day off, a team dinner, a learning budget, or branded merchandise. Each reward has a title, description, emoji or image, category, and price in karma points.

Karma also suggests reward ideas, such as "Day off," "Movie time," "Dinner for two," and "Mystery gift," to help organizations get started.

Organize rewards into categories

Rewards are grouped into categories, including Goods and experiences, Company merchandise, Charity, and Money and gift cards, making the catalog easy to browse.

Collect details at redemption

Admins can require a comment during redemption, for example to collect a T-shirt size or preferred date for a day off.

Fulfill rewards with clear status

Owners and moderators receive a notification when a reward is redeemed, mark it as fulfilled, and the employee is notified automatically.

Celebrate together with group rewards

Team members can pool karma points toward a shared non-monetary reward, such as an offsite or team dinner.

Support charitable giving

Employees can direct their points to a charity donation instead of a personal reward.