What are Intangible Benefits: Definition and Examples

Over the past years, intangible benefits have started to become more and more commonplace in everyone’s work environment. In fact, a study has shown that there has been a 29% growth in intangible investment shares over the past 25 years.

That’s the reason why intangible benefits are starting to become more common in the workplace. Read on as we discuss more about intangible benefits, along with some examples that companies can use to strengthen their pay equity practices.

What are intangible benefits?

Intangible benefits are the non-monetary advantages that a company has that cannot be reported by economic standards but still provide great value to the company. Usually also called soft benefits, intangible benefits are also long-term assets that boost a company’s intellectual property.

Since these benefits are intangible, they can also fluctuate over time along with being virtually impossible to estimate beforehand. This also means that these benefits change from one company to another.

For example, IT companies can define these benefits as lower clerical labor costs and lower data entry costs, whereas marketing agencies would define it as communicating their brand’s overall value and articulating their customer’s overall struggles.

The difference between tangible and intangible benefits

The main difference between the two is that tangible benefits can be measured financially, whereas the latter cannot be quantified economically. Examples of tangible benefits include resources used, cash flow, and revenue.

It is important to note that intangible rewards can be counted as tangible as long as there are metrics to back them up, although it's a complex process. For example, marketing agencies can quantify how much their brand’s reputation has gone up by using metrics like user statistics, satisfaction surveys, and the like to provide a better image of a company’s intangible benefits.

Examples of intangible benefits

Listed below are some examples of intangible rewards that companies can use to determine their advantage over their competitors.

• Enhanced user experience

  Providing customers with a great user experience will provide the company with a positive public image along with providing great return on investment. In fact, studies have shown a 60% higher profit for companies that provide emphasis on customer experience.

  To achieve this intangible reward, focus on three things: simplicity, speed, and accessibility. Remember to keep it simple and stylish as research has shown that 59% of customers are more likely to purchase from stores that are easy to navigate while still providing useful information at the same time.

Be the Brand That Pays Fairly

Prove your commitment to equity. Be a market leader.

Show Me How
• Improved employee engagement

  Employee engagement is also a form of soft benefit for companies. Increased employee engagement not only reduces the turnover rate, but it also helps increase profitability and decrease absenteeism as well.

  Effective communication and continuously encouraging innovation are two ways to enforce positive employee engagement to achieve intangible rewards. Properly communicating pay equity can also motivate employees to work better and improve overall engagement.

  Providing employees with a healthy work-life balance schedule is also equally important to develop better employee engagement as well.

• Strong company culture

  Upper management who understands and knows what the company can provide to both their employees and clientele alike can help the company attain better results along with a more positive working environment.

  To implement this, ensure that the business leaders are sticking by the organization's mission and vision while providing positive reinforcement to ensure employee satisfaction. In fact, a 2022 study has shown that 60% of respondents have accounted inclusivity as the main factor for their team’s success.

• Better company image

  A positive brand reputation and a stellar company image are also a good example of intangible benefits for the company. With a positive company image and reputation being responsible for a 10% - 20% revenue growth and 46% of customers paying more for trusted brands, it’s no surprise that a positive company image can help corporations gain significantly more money.

To create a better company image, be more consistent with branding and have an easily recognizable niche. Apple, for example, has carved out its own niche in the market by providing quality electronics and a more simplistic approach to advertising. Companies can create their own specific niche to stand out and eventually gain intangible benefits from it.

How does intangible benefits help with pay equity?

Simple – companies that have properly assessed their pay equity practices are sure to have happier employees in the long run. Employees who are paid equally are 30% less likely to leave the company, along with having an overall higher employee satisfaction rate.

Better employee morale means better job satisfaction and a more motivated workforce. This ensures increased productivity, and an organization where everyone contributes and helps each other overcome challenges.

FAQs

Here are some commonly asked questions about intangible benefits:

What is an example of intangible benefit?

It can be defined as any non-financial, subjective benefits that cannot be quantified monetarily or otherwise. It can come in plenty of forms like company image, good user experience, company culture, and better employee well-being to name a few.

What are the expected intangible benefits?

The most expected examples most companies should strive for are a good company image, an effective company culture, great employee engagement, and a good baseline user experience.

What is the difference between tangible and intangible benefits?

As mentioned above, tangible benefits tend to be benefits that the company receives that can be quantified and measured. This includes sales figures, social media engagement, health insurance, and fiscal year records.

However, unlike tangible benefits, intangible benefits deal with less quantifiable measures like the benefits that are mentioned above.