Here are 10 excellent non-monetary incentives you can use to motivate and retain top talent:
Clark 2 Introduction Most managers spend time searching for ways to create a motivational environment where employees associates work at their optimal levels to accomplish company objectives.
Workplace motivators include monetary and non-monetary incentives. Monetary incentives can be diverse while having a similar effect on associates, such as company health insurance programs. Associates, depending on their age, have different needs pertaining to incentives. This article discusses how monetary and non-monetary incentives are influenced by career stages and the problems associated with monetary and non-monetary incentives.
Traditionally, these have helped maintain a positive motivational environment for associates. Non-Monetary Incentives The purpose of non-monetary incentives is to reward associates for excellent job performance through opportunities, including flexible work hours, training and education, pleasant work environment, and sabbaticals.
Incentives across Generations Research suggests that desired monetary incentives differ for associates based on their career stage and generation. Surveys by the American Association of Retired Persons AARP have shown that most workers will work past retirement age if offered flexible schedules, part-time hours, and temporary employment Nelson Non monetary incentives information presented in Table 1 lists non-monetary incentives that are important to each generation covered in the surveys Nelson Problems with Monetary Incentives Kohn argues that monetary incentives encourage compliance rather than risk-taking because most rewards are based only on performance.
As a result, associates are discouraged from being creative in the workplace. Another argument Kohn presents is that monetary incentives may be used to circumvent problems in the workplace.
For example, incentives to boost sales can be used to compensate for poor management. Employers also may use monetary incentives as an extrinsic rather than an intrinsic motivator. In other words, associates are driven to do things just for the monetary reward versus doing something because it is the right thing to do.
This can disrupt or terminate good relationships between associates because they are transformed from co-workers to competitors, which can quickly disrupt the workplace environment Kohn Tailoring Non-monetary Incentives Generational non-monetary incentive differences in Table 1 are affected by career stage and proximity to retirement.
The older the associate, the more the focus is placed on retirement or supplementing retirement income with part-time or temporary jobs. The younger the associate, the more the focus is placed on job satisfaction and the work environment.
The bottom line is that incentives must be tailored to the needs of the workers rather than using the one-size-fits-all approach, which is impersonal and sometimes ineffective. Conclusions Monetary and non-monetary incentives vary in their roles, effectiveness, and appropriateness, depending on the type of incentive.
This is just the opposite of what incentives were created to do. Incentives must take into account the workers for whom they were created. A balance between monetary and non-monetary incentives should be used to satisfy the diverse needs and interests of associates. Creating a balance sheet is a simple exercise that can be used for evaluating incentive programs.
On one side of the balance sheet list all the incentive programs both monetary and non-monetary of your organization. On the other side list all the outcomes whether desired or not that can be attributed to these incentives.
Areas of improvement would be those outcomes identified as undesirable. Harvard Business School Press.5 Ways to Reward Great Employees Besides Money Great employees need motivation but money isn't always the answer. Here are five non-monetary ways to get your team moving. Remember, rewards are designed as a way to show your staff appreciation for their hard work, and whilst extra money is often cited as motivators for employees, it’s often the intangible, non-monetary rewards which have the most impact on staff morale.
Monetary and non-monetary incentives vary in their roles, effectiveness, and appropriateness, depending on the type of incentive.
Alfie Kohn () argues that some incentives can actually hamper associates and companies by decreasing associates’ motivation, interest, and job satisfaction.
Incentives and rewards are paramount to the success of an open innovation or crowdsourcing campaign. The crowd, judges, evaluators, managers need a reason to invest their time, energy, and creativity into submitting and evaluating ideas, and voting and commenting on ideas.
Non Monetary Rewards Although businesses experience some of the same hardships with non monetary incentives, the extremes are far less. Therefore, the advantages are far greater in using non monetary gifts in the workplace.
Non monetary gifts tend to promote creativity among associates in the workplace. Remember, rewards are designed as a way to show your staff appreciation for their hard work, and whilst extra money is often cited as motivators for employees, it’s often the intangible, non-monetary rewards which have the most impact on staff morale.