Introduction
Today, more than ever before, managers are increasingly looking for ways to craft a motivational environment which can facilitate employees to perform at their maximum levels in the pursuit of accomplishing the objectives set by the organization (Ballentine et al, 2009). Towards this aim, managers have developed a variety of workplace incentives, mostly in the form of monetary and non-monetary motivators, which focus to reward hard work, professionalism and loyalty.
Employees are the greatest asset of any organization since they almost single handed decide the position of the organization in either maintaining its competitive advantage or receding back to oblivion (Edwards et al, 2008). Their treatment, therefore, is a fundamental management strategy in the 21st century. This paper will seek to demonstrate that non-monetary incentives are more significant to employees than money.
Main text
It is important to recognize that both monetary and non-monetary incentives, otherwise known as total rewards, are offered to employees in diverse ways for purposes of attracting and motivating them to the ideals of the organization (Mathis & Jackson, 2008). The acceptability and value of these incentives in the eyes of employees is dependent on range of factors, which includes age, position of employment, needs, industry classification, and employee commitment (Ballentine et al, 2009; Gratton, 2007).
For example, an employee who is not committed to the long-term objectives of an organization may opt for monetary incentives, which includes mutual funds, bonuses, earnings sharing, fully paid holidays, and stock options (Ballentine et al, 2009). In most cases, the main objective of monetary enticements is to reward employees for excelling in their respective jobs through money.
On the other hand, Non-monetary inducements go further than rewarding employees for their excellence thorough money to ensuring their individual and career development through offering more opportunities for upward growth and mobility (Sparrowhawk, 2008; Ballentine et al, 2009). Such incentives include independence and autonomy, flexible working hours, recognition, training and advancement, satisfying work environment, opportunity to contribute, and vacations.
Analysts are of the opinion that non-monetary incentives not only help to trigger the desired loyalty, commitment, and motivation on the part of employees to assist in the pursuit of organization’s goals and objectives, but they also assist the management to retain top-performing employees in the organization.
A study conducted on 1,000 employees by research firm GfK NOP revealed that “…a higher percentage of staff planning to quit their jobs within the year work for line managers who do not provide non-monetary rewards than those who work for managers who do (Sullivan, 2008 p. 14). Performing employees who receive monetary rewards are more likely to be poached by other companies offering higher monetary offers (DeVries, 200&). In line with retention programs, non-monetary incentives offer employees an opportunity to learn and nurture their skills so as to advance in their careers (Mathis & Jackson, 2008). Researchers working in various sectors need such an incentive if they are to effectively make more discoveries and rise to new challenges
Loyalty in some types of businesses is of utmost importance for the proper functioning of the organization. The banking industry, for example, is mostly driven by the loyalty of the employees towards the ideals of the banking institutions. Consecutive studies have revealed that employee loyalty is rarely bought by monetary incentives since other competitors will be more willing to offer more than an organization is presently offering its employees in the hope of gaining a competitive advantage (Sparrowhawk, 2008). In the light of this, most financial institutions employ non-monetary incentives for long-term growth and career development of their employees to keep them loyal and motivated to the ideals of the banks. It cannot escape mention that banks deal with transactions involving money and thus, loyalty is a prerequisite.
In this day and age, more employees are clamouring for independence at their places of work. According to Tosi & Mero (2007), the working environment and level of independent decision-making offered to employees directly affects their performance. It is true that modern-day employees are uncomfortable when their supervisors keep watching their every move, and studies have indeed revealed that constant and clandestine employee monitoring lowers employee performance (Gratton, 2007).
As such, offering the employees a non-monetary inducement in the form of guaranteeing sufficient levels of independence at the workplace works in favour of the company since employees are motivated to offer their best. This concept has worked well in the media industry, where employees are offered the independence of working on assignments on their own as long as they complete the work before the lapse of the given deadline (Brown, 2008). Monetary incentives cannot guarantee independence since the employee is paid money to do as many assignments as possible.
Many employees of the 21st century value flexible working hours as long as they are able to deliver on their work promises. According to Brown (2008), managers are steadily moving towards a culture where employees, especially in the service industry, are given the discretion to arrange their work as long as it gets done. Powell & Adams (2007) asserts that traditional working hours are slowly moving towards oblivion as managers are becoming more flexible in allowing employees to arrange their own work schedules.
Banks and other financial institutions are operating on Sundays and evenings, necessitating employees who may not be able to work during the day shift to work in the evening shift. It can therefore be argued that managers can successfully use non-monetary inducements in the form of flexible working hours to enhance employees’ desire, commitment, and motivation (Messmer, 2007).
Conclusion
Lastly, non-monetary incentives are more advantageous than money in an organizational setting since they can be used to recognize employees and give them a chance to contribute (Mathis & Jackson, 2008; Devries, 2007). There is no better way to arouse employees’ motivational faculties than to acknowledge their efforts and to encourage them to keep improving. This, according to Gratton (2007), can be done through verbal or written communication channels.
Some companies especially in the insurance industry publicly recognize the best insurance policy sellers in their annual general meetings and through newspaper and TV advertisements. Such employees are often offered the chance to work closely with the management team, and are involved in making key decisions (Woods, 2007). Such a non-monetary reward goes a long way to solidify employee motivation and enhance performance in ways that monetary rewards cannot possibly achieve.
List of References
Ballentine, A., McKenzie, N., Wysocki, A., & Kepner, K (2009). The Role of Monetary and Non-Monetary Incentives in the Workplace as Influenced by Career Stage. EDIS. Web.
Brown, D (2008). Pay and Engagement: A totally Rewarding Relationship. Personnel Today, p. 18.
DeVries, S (2007). Money Important, but Appreciation, Recognition Keep Employees Performing. National Jeweler, Vol. 101, Issue 4, p. 54.
Edwards, B.D., Bell, S.T., Arthur, J.W., & Decuir, A (2008). Relationship between Facets of Job Satisfaction and Task and Contextual Performance. Applied Psychology: An International Review, Vol. 37, Issue 3, p. 441-465.
Gratton, L (2007). Four Ways to encourage more Productive Teamwork. Harvard Management Update, Vol. 12, Issue 11, p. 3-6.
Mathis, R.L., & Jackson, J.H (2008). Human Resource Management, 12th Ed. Nalorp Boulevard Mason: Thomson South-Western.
Messmer, M (2007). What Employees Want: Four Meaningful ways to keep them motivated. National Public Accountant, Vol. 6, Issue 6, p. 24B-24H.
Powel, D.W., & Adams, D.E (2006). Better banking. Consumer Reports, Vol. 71, Issue, 9, p. 12-15.
Sullivan, N (2008). Non-Monetary Rewards make Workers more likely to stay. Employee Benefits, p. 14.
Sparrowhawk, C (2008). Letter: Money not always the Right Reward. Marketing Week, Vol. 12, Issue 36, p. 36.
Tosi, N., & Mero, N.P (2007). The Fundamentals of Organizational Behaviour: What Managers need to Know, 2nd Ed. Oxford: Wiley-Blackwell.
Woods, A.M., (2007). Recognition of Achievement Ranks as Top Employee Motivator, Teller Vision, Issue 1356.