Every manager hopes to lead a team of motivated employees who add value to the company. But often workers need to be pepped up; and motivating team members is not always a cakewalk. This is when some managers choose to opt for salary raises, bonuses and other monetary incentives to help get things going. But if every manager starts doing that, it won’t necessarily bode too well for the company’s finances. Thankfully, a more economical way of motivating employees is taking the route of non-monetary incentives in the form of offering rewards and recognition.
Past research on non monetary rewards has suggested that even though they are nothing like salary raises, bonuses and other incentives, if used in the right manner non monetary employee reward programs can be extremely valuable. So what is the primary difference between incentives and non monetary reward and compensation? Incentives are things that are offered to employees before they carry out the desired tasks, they are mostly money related. It works on the principle of “if you do this, you get that”. That makes them a great way to motivate employees as it gives them a reason to do a certain task.
On the other hand, rewards are something that are given to the workers as an appreciation for a job well done. They are not discussed in advance. Which means a reward is given afterwards and not before the task. Thus the effects of rewards and recognition strategy on the psychology of employees was always positive.
There are many different ways in which managers can reward their employees and motivate them to work harder. Some of the most common and effective types of compensation you can offer to your employees food, flexible work hours, shopping vouchers, recognition in the team and office etc.
You might also be interested to read: Reinventing Key Performance Indicators For Employees
Food: Considering that an employee worked hard on a project, not because they are expecting something from your end, but as a portrayal of their dedication and work ethics. Should you and the company wish to appreciate their efforts, you could hand them a voucher of a few hundred rupees to their favorite restaurant, or some free beverage and food coupons that they can use at a cafe. These types of compensation will have a much bigger impact on the employee than a predetermined cash incentive.
Flexibility: Especially for the newer generations – millennials & gen Z, flexible working hours are extremely valuable. Having an option to clock in their working hours as per their convenience can really motivate them to give their best in terms of productivity and performance.
Recognition: This may seem pretty obvious but it is the most important part of the employee rewards and recognition strategy. A simple acknowledgement and thanks offered in front of the entire team or perhaps a higher authority, can have an immensely powerful effect on the motivation levels of your workers. Letting your employees know that you observe them, see them work and appreciate their work, is a simple way to boost your employee satisfaction and motivate them to work harder.
In conclusion, when employees are made to feel valued and appreciated, when you recognize the effort and hard work that they put in, and offer them a token of acknowledgement, it is much more valuable than any monetary incentive.
Reference:
“Non-monetary rewards: Are they more valuable than cold, hard cash?”, Michael Boyette, June 28, 2019
