Did you know that employees who feel valued are up to 50% less likely to look for another job? Recognition is about more than just money. A bonus is great, but only scratches the surface. Real engagement comes when employees feel recognised, valued and connected.
Non-financial rewards play a key role in this. They’re not a nice-to-have, but a must. They are what makes the difference between ‘work’ and ‘this is where I want to stay’. In this blog you’ll discover why and how you as an HR professional can embed recognition in your organisation. No empty words, but practical actions with real impact.
What are non-financial rewards?
Non-financial rewards are ways of showing how much you appreciate your employees without a direct salary increase or bonus. For example:
- Recognition and appreciation: A sincere compliment, personal ‘thank you’ or an award for a great achievement.
- Flexibility: Remote working, flexible hours or an extra day off.
- Gifts: A personalised gift that really speaks to the recipient.
A bonus is about numbers. Appreciation is about people.

Why are non-financial rewards so important?
Research (Levitt & Neckermann, 2014) shows that focusing on bonuses alone doesn’t work – in fact, it can even reduce motivation and engagement. Why? Because money isn’t everything. What really drives people is appreciation.
That deeper appreciation comes from non-financial rewards. They reinforce the feeling of recognition, increase engagement and foster a positive company culture. The result? Better performance, a loyal team and lower employee turnover.

What do they achieve? The benefits for employees and employers
Non-financial rewards are not a nice-to-have. They’re essential.
For employees
- Increased well-being: Appreciation reduces stress and increases job satisfaction. A small gesture can work wonders.
- More motivation: When employees feel appreciated, they automatically give more in return. A simple compliment or a small gift can make a big difference.
- Stronger relationships: A well-chosen gift or a simple ‘thank you’ strengthens the bond with colleagues and managers.
For employees
- Less turnover, more productivity: Happy employees stay longer and work harder, saving you time and money.
- Stronger employer branding: Companies that embed appreciation in their culture attract talent more easily.
- Positive company culture: A strong focus on appreciation leads to more engagement and improved collaboration.

Your practical guide to an impactful gifting policy.
From insights to action: how to put it into practice in your organisation?
Appreciation works best when it’s properly integrated into your organisation. Here’s how to make it a permanent part of your HR policy:
1. Make recognition an integral part of your gifting policy
Plan regular moments of recognition, budget for spontaneous gifts or a ‘thank you’, and set up a clear gifting policy. Because appreciation shouldn’t be an afterthought, but a core part of your organisation.
2. Focus on personalisation
Not everyone will be happy with the same gift. Give employees the option to say what they prefer via a wish list or feedback system. This helps avoid the ‘gift gap’ – the difference between what someone receives and what they actually want. This is an important point when it comes to non-financial rewards. Being smart about this ensures that your gifts really make an impact and contribute to the recipients’ satisfaction and engagement.
3. Use Kadonation Select
With Kadonation Select, you’re not just choosing a gift. You’re giving the gift of well-being, appreciation and connection. Whether it’s a small token of appreciation or more recognition for a bigger achievement, we help you make a lasting impact.
Appreciation doesn’t have to be hard. In fact, Kadonation makes it easy. Coffee and a good chat?

Isabel
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