Ways to Reward Employees without Spending Money

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In a difficult economy, employers do not always have the funds to reward employees with financial rewards. There are a variety of other incentives that can be just as effective in providing encouragement and support for those that go above and beyond.
Praise
Studies have shown that verbal and written praise can have a profound effect on a person. A simple “Good job!” can instill feelings of achievement, accomplishment and self-worth. The employee will feel better about themselves, their work and the company as a whole. It is important for employers to provide positive feedback and praise when an employee does a good job.
This praise can range from the informal to the formal. Simple words of encouragement on a regular basis can be effective. Also, one can formally recognize an outstanding employee at a company meeting, through e-mail or at other events.
Employee of the month
An employee of the month program is excellent at rewarding stellar employees. Even a simple certificate can give an employee pride in their work and showcase their talents to others. It is an easy program to implement and should be done regularly.
Days off
Time off may be what the employees want most of all, and this can make a great reward for an employee if you do not need to spend money to replace them. Even letting them leave work a few hours early can be helpful. In many positions there is down time, and the company may not lose anything at all by letting employees have a little of this time to themselves.
Company event
You can also plan a fun event for the employees during down time as a reward for a job well done. For instance, you can plan a sports game with employees. You can let them have a little party. Make it pot luck if the company cannot afford to purchase the food and party supplies themselves.
Better parking
Parking is a hassle at many places of business, and this can be used as a reward for those who excel at their jobs. You may have a preferred spot that is given to the employee of the month, for instance. Those who perform well may earn themselves better spots.
More power
If an employee proves himself or herself, you may want to provide them with more power. They may be put in a supervisory role or not have to report to you as much. This delegation can free up some of the time of the management as well, producing a dual benefit.
Rewards do not have to be tangible to be effective. The above reward systems do not cost money, but can provide a host of benefits for the employees and company.