SUMMARY
Scant research has focused on how to increase the value of monetary rewards when they are delivered by leaders to employees. Drawing upon the perspectives of sensegiving and sensemaking, this study explores how leaders generate meanings of monetary rewards perceived by employee recipients in organizational settings. Using a qualitative method design and analyzing qualitative data from 291 incidents, we found that in the distribution process of monetary rewards, sensemaking of employees included strong and weak instrumental meanings as well as symbolic meanings. The results show that leaders adopted a set of sensegiving strategies in distributing monetary rewards including emphasizing money gain/loss and utility, providing feedback, valuing employees, orienting toward the future, guiding values, and publicizing. In the presence of leader’s sensegiving, employee recipients endorsed more positive symbolic meanings of monetary rewards (i.e., recognition and respect). Our research offers a richer view of the role of leader’s sensegiving in making monetary rewards gain more value through employees’ sensemaking, and enriches understanding of monetary rewards, leadership, sensegiving and sensemaking.