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Financial vs. Non-Financial Rewards

Financial vs. Non-Financial Rewards

  • Submitted By: Schokohase
  • Date Submitted: 01/09/2011 3:16 AM
  • Category: Business
  • Words: 429
  • Page: 2
  • Views: 880

Contrary to the opinion of many leaders financial benefits have a bigger impact on motivation, non-financial rewards are as important as financial rewards. Job enrichment is one of the examples: Giving more interesting, challenging and complex tasks, employees get more responsibility. Therefore they feel the trust and it gives them confidence so they feel more important. Another example is empowerment which is like delegation. A certain power or authority is given to employees so they can make their own decisions regarding their working life. For instance workers have control over their time management and can decide the priority of tasks that need to be done. They are encouraged to consider problems they face and learn to solve them and come up with solutions. But these measures should be deliberate because they assume a trained staff. Otherwise disorder and unsatisfied customers can be the consequence.
However there are several advantages of non-financial rewards like special family benefits and free fitness and health measures, because they boost membership and satisfaction of the employees and everyone feels equal. Building an affective relationship between employer and employee makes it more difficult for competitors to lure away the staff and makes the individual less likely to leave. Another advantage is that non-financial recognition schemes highlight desired behavior. Through recognizing exceptional behaviors and achievements, other employees will aim to achieve the same goals and imitate certain behaviors. Furthermore the non-financial recognition scheme is linked to relatively low costs because the symbolic value is more important than the costs. But non-financial recognition does not mean that the recognition provided should have no financial value. So whatever is given should not just be money. It is the recognition itself and the esteem it gives to employees what really motivates people. This kind of recognition is more likely to be memorable than...

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