When rewarding team members for exceptional performance, there isn’t a one-size-fits-all approach.
Good leaders consider the sharp differences between team members and weigh carefully what will motivate them going forward. Because thoughtful rewards tap into what truly motivates individuals, leaders tailor their rewards accordingly.
Leaders naturally want the rewards they give to team members to carry impact and to align with that person’s goals and values.
While one team member is elated by a charitable donation on their behalf, another team member would prefer greater responsibility within the team.
Differences really matter. They shape whether team members feel genuinely valued for their work.
But when it comes to rewards, cash is king. Or so leaders have been led to believe.
There’s a silly proverb worth remembering for leaders: How do you take a lollipop away from a child? Give them a larger lollipop.
Good leaders do their best to give team members more of a good thing. But when rewarding with cash or compensation, it isn’t always about giving people more money.
Sometimes it is how leaders use that money that can make the greatest impact.
The easiest thing for leaders to do is to reward team members with year-end bonuses or salary increases to acknowledge exceptional performance. That is a great call.
But less obvious financial rewards sometimes carry even more weight.
Consider this list of less common rewards that can replace direct cash compensation: fully paid trips or experiences, profit-sharing, commuter stipends, paid childcare assistance, learning allowance, travel vouchers, paid mental health days, student loan repayment, meal allowances, enhanced retirement matching, gas cards, storage unit reimbursements, travel upgrades, expanded health coverage upgrades, unused vacation day buy-backs, and donations to charity.
Smaller targeted purchases can feel more thoughtful, memorable, and sometimes more valuable than cash.
Instead of smaller cash payments, consider what the same money could buy: gift cards, dual monitors, ergonomic chairs, standing desks, home office equipment, meal-kit subscriptions, recovery treatments, technology upgrades, professional memberships, house cleaning services, grocery delivery credits, car detailing, wardrobe consultations, lawn care services, event tickets, tutoring sessions for children, family photography sessions, and app subscriptions.
Cash is generic. And more cash is appreciated by almost everyone. But cash alternatives and small purchases can sometimes carry more symbolic value.
When leaders buy something that solves a friction point, accelerates growth, or affirms identity, it communicates attention and intentionality, two things money alone rarely delivers.
A Daily Dispatch from the Front Lines of Leadership.
