What are non-monetrary benefits and why do they matter?
You’ve spent months searching for the perfect candidate.
They have the skills, the experience, and they seem like a great fit for your company culture.
You offer them a competitive salary only to have them decline the job in favour of another company offering more flexibility, career development, and a stronger focus on well-being.
Or maybe you’ve noticed a trend of employees leaving, even though your pay rates are above industry standards.
When conducting exit interviews, you hear a common theme: they don’t feel valued beyond their salary.
This is the reality for many New Zealand businesses today. While salary remains important, it’s no longer the only factor driving job satisfaction. Employees expect workplaces that support their career growth, mental well-being, and work-life balance.
Megan Alexander, managing director at Robert Half New Zealand hears firsthand from candidates how important benefits are to their job decision making everyday.
“There is no denying that salary is one of, if not the most, important consideration for candidates when considering a job offer, or whether to stay at their current organisation. But benefits are a close second.
“In today’s business landscape, most companies offer the similar salary ranges, so non-monetary benefits can be a key pull factor for keeping talent within an organisation.”
So, how can employers create an environment where top talent stays? The answer lies in non-monetary benefits, which are the perks and workplace practices that enhance employee experience without directly increasing salaries.
With her two decades of recruitment experience in New Zealand, Megan will guide you through the power of non-monetary benefits in the retention battle in Kiwi companies.
Why a competitive salary alone isn’t enough
A good salary can attract employees, but it doesn’t guarantee they’ll stay.
Workers are increasingly prioritising flexibility, personal development, and recognition over financial incentives alone.
This shift is particularly evident in industries facing talent shortages. When multiple employers offer similar salaries, jobseekers look at what else a company can provide. A workplace that values well-being, professional growth, and appreciation stands out far more than one that only offers a bigger salary.
For employers, this means rethinking compensation strategies. Companies that fail to invest in holistic employee experiences risk losing valuable talent to competitors who do.
“New Zealand consistently ranks as one of the top countries globally for work-life balance, stemming from a deeply ingrained cultural emphasis on quality of life alongside productive work. Kiwis prioritise their extensive outdoor lifestyle, strong community connections, and family time, viewing work as a means to facilitate these pursuits rather than being the sole focus of existence,” says Megan.
“This is all to say that a company that can support and sustain a healthy work life balance in New Zealand in the form of non-monetary benefits will be highly desired by Kiwi workers, even if salary is in line with comparable businesses.”
What are non-monetary benefits?
Non-monetary benefits are workplace perks, policies, and cultural practices that enhance job satisfaction without direct financial compensation.
These benefits focus on improving work-life balance, career development, well-being, and company culture.
One of the most sought-after benefits in New Zealand is flexible work arrangements. Many employees now expect options like flexible hours. Companies that embrace these models not only improve retention but also attract a broader talent pool, including parents, caregivers, and remote professionals.
Megan: “While the New Zealand workforce has largely returned to the office full-time, the enduring need for flexibility had remained. The widespread adoption of flexible working hours demonstrates that employers are acknowledging the employee demand for more work-life balance and aiming to develop a more attractive and competitive work environment to secure and retain top talent.”
Another key factor is career growth opportunities. Employees who feel stagnant in their roles are more likely to leave. Organisations that offer upskilling programs, leadership training, and mentorship initiatives create an environment where employees see a future for themselves. In New Zealand, businesses investing in internal promotions and structured career paths report higher retention rates and stronger engagement.
Workplace culture also plays a critical role. Employees want to feel appreciated and recognised for their contributions. Simple initiatives like employee recognition programs, peer-to-peer appreciation, or regular shout-outs from leadership can significantly impact morale. When people feel valued, they’re more likely to stay committed to their employer.
Employee well-being is another priority. Access to mental health support, wellness programs, and additional leave days for rest and recovery can greatly improve job satisfaction. New Zealand companies leading in this space have seen reduced burnout and increased productivity, proving that taking care of employees isn’t just the right thing to do - it’s a smart business strategy.
“When evaluating job opportunities, candidates are increasingly considering the expected working hours in relation to the offered salary. While a significant salary might seem appealing, if it necessitates a 50-hour workweek, the effective hourly rate diminishes considerably compared to a role offering the same compensation for a standard 40-hour week. This critical calculation directly impacts an individual's work-life balance and overall well-being, making it a vital component of a company's employee value proposition and its broader culture. It highlights how total compensation is now being assessed beyond just the headline figure, extending to the quality of life it affords.”
Finally, many workers today seek meaning and purpose in their jobs. Businesses that incorporate corporate social responsibility (CSR) initiatives through sustainability efforts, charitable partnerships, or volunteer opportunities help employees feel connected to something bigger than just their daily tasks. This sense of purpose can be a major motivator in retention.
Why employers should invest into non-monetary benefits
For employers questioning whether these benefits truly make a difference, the evidence is clear: companies that invest in employee experience see higher retention, improved engagement, and better overall performance.
When employees feel supported, they are more productive, innovative, and committed to their work.
Megan reminds us that retention is one of the biggest cost-saving factors.
“Replacing an employee can cost up to twice their annual salary when factoring in recruitment, training, and lost productivity. Offering benefits that keep employees engaged for the long term reduces this turnover cost significantly.”
Beyond retention, organisations that prioritise well-being, flexibility, and development build stronger employer brands. In a competitive job market, a company known for its people-first approach attracts better talent and stands out as an employer of choice.
How to implement non-monetary benefits
Introducing non-monetary benefits doesn’t have to be expensive or complicated. The first step is understanding what your employees actually value.
“Conducting internal surveys or hosting discussions can provide valuable insights into what perks would make the biggest impact. This gives leaders the opportunity to hear directly from staff to ensure what is being offered aligns with their expectations,” says Megan.
Once you have that information, focus on high-impact, low-cost benefits first. Many Kiwi companies see immediate improvements simply by offering flexible work arrangements or recognition programs. These initiatives require minimal investment but yield significant results in engagement and morale.
It’s also important to communicate these benefits effectively. Employees need to be aware of what’s available to them. Regularly sharing information through company meetings, internal newsletters, or an HR portal ensures that workers take full advantage of the perks provided.
Lastly, measuring success is key. Tracking employee satisfaction, retention rates, and engagement levels over time can help refine and improve the benefits offered. Businesses that continuously adapt to employee needs create a culture where people want to stay and grow.
The future of employee benefits and retention
Find your next hire
New Zealand’s workforce is evolving, and non-monetary benefits are no longer optional.
While a competitive salary remains a fundamental part of compensation, it must be paired with meaningful perks that enhance employees’ overall experience.
Organisations that invest in flexibility, career growth, well-being, and recognition will not only attract top talent but also build a workplace culture that retains high performers for years to come.
Related: Employee retention strategies
Frequently Asked Questions (FAQs)
What are common examples of non-monetary benefits in NZ?
Flexible work arrangements
Professional development
Career growth opportunities
Enhanced leave options (like birthday leave, paid volunteer leave, extended parental leave)
Wellbeing programs (gym memberships, flu shots, health checks, mental health, EAP, financial wellbeing)
Work culture and social activities
Why are non-monetary benefits important for employee motivation and retention in NZ?
Companies that invest in employee experience see higher retention, improved engagement, and better overall performance.
How can employers offer non-monetary rewards when a pay rise isn't possible?
When direct pay rises aren't possible, employers can still significantly boost employee morale and retention through various non-monetary rewards like offering flexible work arrangements, investing in professional development opportunities such as training, courses, or mentorship and fostering a positive and supportive work culture through genuine recognition, team-building activities, and open communication.
What non-financial benefits are most valued by New Zealand employees?
Flexible work arrangements for work life balance
Professional development
Career growth opportunities
Enhanced leave options
Wellbeing programs
Work culture and social activities
What is an example of a non-monetary benefit?
A non-monetary benefit is any form of compensation or perk that an employee receives from their employer that is not directly a cash payment or salary. These benefits aim to improve an employee's overall job satisfaction, well-being, and work-life balance, contributing to their total compensation package in ways beyond just money.
An example is flexible working arrangements, such as the option to work from home (hybrid or remote), or having flexible start and end times to the workday. This allows employees greater autonomy and helps them balance professional responsibilities with personal commitments
What is the difference between monetary and non-monetary benefits?
Monetary benefits are direct financial rewards or compensation that an employee receives. These are tangible, quantifiable in currency, and directly impact an employee's financial well-being. Examples include salary, wages, bonuses, commissions, profit-sharing, stock options, and paid time off (as it's a paid absence).
Non-monetary benefits (also known as non-financial benefits or perks) are rewards or advantages that do not involve a direct cash payment but still add value to an employee's overall compensation package and enhance their job satisfaction and work-life balance. These are often intangible but contribute significantly to an employee's quality of life and sense of value. Examples include flexible work arrangements (like remote work or flexible hours), professional development opportunities, a positive work culture, recognition programs, wellness initiatives, and extra unpaid leave.
