The formation of motivation among employees is one of the essential parts of management. The lack of a sufficient number of incentives can lead to a decrease in the efficiency of the team’s work and impressive costs. Research shows that lack of employee motivation can cost a company hundreds of millions of dollars annually in lost productivity (Smith, 2018). Thus, the employer needs to use various kinds of incentives to increase the interest of employees. The purpose of this essay is to analyze non-monetary motivations and compare them both with each other and with the monetary equivalent.
Recently, the use of non-monetary ways to motivate employees has become increasingly popular among employers. There are several reasons for this: first, non-material incentives are often much cheaper for the company. Second, such a method often generates an increased income for the employer than the alternatives (Smith, 2018). As practice shows, one of the most popular and effective ways of non-monetary motivation of employees is the establishment of positive relations between the employee and employers through recognition and praise. People are much more willing to make contact and work more successfully in a more positive environment. Therefore, demonstration of the value of the employee can significantly increase their motivation.
Compared to other non-monetary motivators, recognition and praise have several advantages. First, they help build more trusting relationships with superiors, which ultimately translates into closer further cooperation. In addition, when compared to other non-monetary motivators, such as physical gifts, praise is the stimulus most unrelated to the material side. Third, recognizing an employee’s success allows them to focus more actively on the current job instead of being distracted, as in the provision of days off or additional outside work opportunities. Thus, this incentive is the most effective for increasing employee motivation and, as a result, production efficiency.
The current prospects for the development of companies and the trends shown by the modern generation show that it is in-kind payments becoming an increasingly effective way of interaction between the employer and employees. Most modern workers are primarily interested not in paycheck numbers but in intangible benefits, such as relationships with colleagues and superiors, health, the ability to combine work and education. Therefore, at the moment, non-monetary rewards are at least approaching the efficiency of monetary ones, and if the current trends continue, they will soon be able to surpass them.
Reference
Smith, B. (2018). 5 ridiculously useful non-monetary reward examples that improve employee engagement. Business 2 Community. Web.