Non-Monetary Awards

It is not always possible to give continual monetary benefits to employees and constantly increasing their salaries disproportionately.  Non-monetary benefits or rewards to employees for their performance and contribution is one of the best methods of motivating them.  Non-monetary incentives are as important as monetary incentives.  Organizations and their HR managers constantly strive to find innovative ways of rewarding performers. 

 

Non-financial or non-monetary rewards include all other influences, planned or unplanned, which stimulate exertion.  Merely cash incentives cannot help in solving the problems of industrial productivity.  In order to infuse enthusiasm in a worker for greater and better work, non-monetary incentives have a distinct and significant role.  If industry provides more cash to the workers to create more interest in the work, it may be possible that instead of increasing or adding to his efficiency, it may be misused for vices like gambling or drinking.  Non-financial rewards may be positive or negative.  A person may be demoted or penalized in another way for being absent from his work on and off.  It is a negative incentive but it works as well.  Non-monetary rewards may also be individual or group rewards.

 

Almost like everything else, non-monetary rewards do have their advantages and disadvantages.  Apart from recognition, it motivates employees to perform better; however if the processes are not transparent, it may be de-motivating.  The cost to the company is limited; however, an organization may even go overboard with a barrage of non-monetary incentives leading to unrealistic expectations and costs.  It builds a sense of commitment to the organization and fosters a culture of togetherness; it could also result in unhealthy competition amongst the employees.  It helps to attract and retain talent, yet it can never be a substitute for monetary rewards.

 

Some of them are listed below:

 

*         Official recognition of an employee's contribution.  It could be a social recognition or informal recognition.  But it would add to the self-esteem of the employee and improve his job satisfaction.

 

*         A challenging assignment would assure an employee of the management's confidence in his abilities.  This would improve his self-confidence and boost his morale, motivating him to greater heights of performance.

 

*         A special treat can be organization for the employee and / or his family members in the form of a lunch or dinner, weekend resorts, etc.

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*         Paying special attention to the heath & safety needs of the employee and his family would also serve as an excellent non-monetary reward.  This could be in the form of medical and hospitalization benefits or insurance for all his family members.

 

*         Giving additional responsibility to an employee acts in much the same way as a challenging assignment and motivates the employee.

 

*         Rewarding an employee for his performance through free gifts or free vacations can boost employee morale.  The vacation can also provide him with a much needed break after a challenging assignment. 

 

*         An employee could also be given special memberships to certain exclusive clubs, gymkhanas, recreation centres, etc.

 

*         Awards, as a form of incentive, for exceptional performance and valuable contribution will further add to the social esteem of an employee.  This could be in the form of certificates, letters of appreciation, quality award, best performer or best employee award, etc.

 

 

 

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