The intangible benefits are critical gains that position an organization to carry out its functions successfully and lead to improved safety, product quality, and enhanced employee loyalty (Oprean-Stan, Stan, & Brătian, 2020). Identifying the potential intangible benefits help an organization determine whether to accept or decline the investment proposal. For instance, brand image plays a significant role in identifying the loyalty of an organization.
A company benefits when its brand image is well spoken by prospective customers who spread the information to others. Therefore, attracting investors and others into the business through which the company increases profits and its growth strategy. Intangible benefits present long-term organization assets that provide continuous improvement and are part of intellectual property. Some projects are implemented to improve brand equity and product usability providing better client satisfaction.
Evaluating potential investments or projects using intangible benefits can be difficult due to their non-monetary nature and are not measurable (Oprean-Stan, Stan, & Brătian, 2020). It is not easy to pull different intangible benefit sources from various organization sections to form a single budget presenting actual performance and output challenges. Intangible benefits can increase or decrease over a particular period depending on organizational behavior and functionality. Therefore, an organization should improve its brand image and product quality to maintain employee and customer loyalty, which fosters the ability to invest in a business.
Intangible benefits foster project investments crucial to an organizational financial benefit (Oprean-Stan, Stan, & Brătian, 2020). Although they are non-monetary and difficult to measure, they attract potential investors or investment projects to an organization. Therefore, ignoring intangible benefits can lead to project rejection impacting organization stakeholders’ value, profits, budget accuracy, and growth strategy.
Reference
Oprean-Stan, C., Stan, S., & Brătian, V. (2020). Corporate sustainability and intangible resources binomial: New proposal on intangible resources recognition and evaluation. Sustainability, 12(10), 4150.