What is monetary reward?

Money

Monetary reward is any compensation given to an employee which has monetary value, they are also known as financial rewards. Monetary rewards are always tangible, this means that they are touchable, seen and countable. These rewards are given to the employees when they accomplish a task or perform well in a job, they also help to motivate workers and increase overall output in the organizations.

Examples of monetary rewards are; 

• Increased salary
• Commission
• Profit sharing
• Retirement benefits
• Gift cards and
• Bonuses.

In the concept of motivation, monetary rewards are considered as external forces which influence employees to work. These external forces helps to influence or to convince the employees to perform better, knowing that they will be rewarded for their performance.

There are two main types of rewards, which are intrinsic rewards and extrinsic rewards. Intrinsic rewards are from within an employee and they bring a feeling of satisfaction to an employee when he or she accomplish a task, they are usually non-monetary rewards. Extrinsic rewards are from outside an employee including all monetary rewards and some of non-monetary rewards.

You can also read;

• Job Description: Meaning, Components, Objectives, Uses, Characteristics and Importance
• What is job summary?
  
• Job analysis: Meaning, purpose, methods, steps and Benefits
  
• What is Job evaluation?
• What is Job Classification?
• Employee promotion: meaning & types
  
• Employee transfer: meaning and types
• What is Intangible reward?

• Employee demotion: meaning and types