Non Monetary Incentives In The Workplace

Employees that feel appreciated at there job seem to have better attitude, work more hours and appear to have better attendance. Small rewards on the job such as encouraging work performance with free company shirts or hats, giving recognition to teams or departments for a job well done make big impressions on employees. Companies have found that money is and important motivator for high levels of employee productivity. However, money incentives by its self may not be as affective and it may not render the loyalty from employees many companies strive to achieve. The combination of monetary and non- monetary rewards have proven to be affective in an completive job market, as it helps to keep employees from straying to companies that offer appetizing bonuses and incentives.

Starting up a business shows good potentials but nevertheless, being self-employed is not just about being in control, following your dreams nor choosing your hours of work but rather it carries greater responsibilities and challenges that you are not likely to face when working for a company, it important for an individual to understand this. Working for a company gives a better comparative advantage for the employees than being self employed. Why be self employed and pay higher taxes with less benefits?, when all these are of less disadvantage as an employee. For these reasons, it is better to work for a company because it serves better benefits in the area of financial compensation, responsibilities and time commitment. First, in terms of financial compensation, people who work for a company enjoy

It is normal for employees to expect favors from their bosses, and more so when they are friends with their bosses. Your judgment might be overshadowed by this unhealthy boss-worker friendship when it comes to rating performance and granting promotions. It can be very difficult not to become close with those who work with you for a long time. But as a boss, you know better than to cross the line if you want your business to succeed. It is never healthy for your business to be friends with

Keeping good employees increases profits. Employee turnover is a direct drain on the bottom line. Another incentive for employee retention is the high cost of recruiting and replacing valued employees. In a low-unemployment market, employees are increasingly difficult to find. Many employers are trying to reduce employee turnover with quick fixes, gimmicks, games, and prizes that just don't work.

While incentives are not the answer to all personnel challenges, they can do much to increase worker performance (Dessler, 2011). Some kind of incentive pay is an important part of any compensation plan. Incentive pay shows appreciation and creates a sense of participation in the company's well-being that straight salary dollars, though sizeable, don't communicate (ABS, 2010). A well-designed incentive-pay plan can also help pull people together, help point them in the direction you want them to go, and give that extra push that every company needs in today's competitive environment (ABS, 2010). Cash incentives should always be issued separately from the regular paycheck so that an employee can monitor their award.

At that time, the managers decided to give employees incentive bonuses, to encourage them to work better, even though, they do not reach their daily goal. Taylor disagrees with this; he believed that the secret of productivity was finding the right challenge for each employee, and then paying him for increased output. He wanted the managers to pay incentive bonuses to those who fulfilled their goal. T... ... middle of paper ... ...or felt that employees needed to be closely supervised and told what to do. This was because; employees tend to do as little as possible and would not work in the most efficient way.

On the other hand, the downsides of not having these policies are workers are not motivated I think the salary of an employee is not the only factor for which workers are motivated to work. Companies should offer fringe benefits which are not- cash forms of reward and are used by business in addition to normal payment systems in order to give status to higher- level employees and to recruit and train the best

Recognition programs do not tend to be monetary in nature even if they cost the company. Recognition according to Sue Glasscock and Kimberly Gram in Productivity Today elicits a psychological benefit whereas reward elicits a financial benefit. The difference is important as many small businesses and companies can use recognition programs to motivate employees while keeping costs low. MERIT VS. PERFORMANCE REWARDS Financial rewards given on regular bases include bonuses, gain-sharing, and so on and are tied to an employee’s accomplishments and are distanced from salary.

The overwhelming feeling is that pay is fine as a short term motivator but when it is used continually workers can become reliant and it can put pressure on employee relations as well as encouraging them to work purely for economic reward. Managers will not always be disappointed with results as explained but there are other ways to motivate which have shown to produce continually good results such as job enrichment and making employees feel as though they genuinely matter. In my opinion, managers who use pay incentives can achieve good results but from reading the articles as evidence my advice would be to use them sparingly. [1] Organisational Behaviour – compiled by A. Beauregard page 201 [2] Organisational Behaviour – compiled by A. Beauregard page 204 [3] This study “examined the changes in needs of a group of people.” OB – A. Beauregard page 205 [4] Organisational Behaviour – compiled by A. Beauregard page 205 [5] Organisational Behaviour – compiled by A. Beauregard page 206 [6] Harvard Business Review

However, whilst this method of motivation maintains both, it is more costly for the business; due to paying extra bonuses, and is not as effective as punishment. This is because not all workers will want to work harder to earn bonuses. Some may be content with their current output and wage, whereas all workers will be forcefully motivated if their employer threatens to fire them for low