These include salary, bonus, fringe benefits, pay raise, gym or club memberships etc.
Intangible rewards are non-monetary incentives given to individuals, such as awards, recognition etc.
An efficient incentive system combines tangible and intangible benefits for employees.
However, the problem with tangible rewards is that the more they are offered the more is the expectation of employees of getting them. And if companies keep on increasing tangible rewards, the company might not be able to get the desired Return on Investment (ROI).