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Gifting policy

The power of non-financial rewards: why a bonus doesn’t offer real recognition

By Isabel
10 Mar 2025

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: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.
White paper

Your practical guide to an impactful gifting policy.

Feel you could get more out of your gifting policy by maximising the power of appre­ci­a­tion in your organ­i­sa­tion? Then download our practical whitepaper below. It’s full of surprising insights, inspiring examples and concrete sug­ges­tions for your strategy around appre­ci­a­tion.
Download our gifting policy whitepaper

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? 

Yes, I would like to schedule a meeting.