Question

State and explain any four non-monetary incentives that can be used to motivate employees.

Explain any four non-financial incentives which motivate employees for better performance. 

Answer 1

Besides the monetary incentives, there are certain non-financial incentives which can satisfy the ego and self- actualization needs of employees. The incentives which cannot be measured in terms of money are under the category of “Non- monetary incentives”.

Whenever a manager has to satisfy the psychological needs of the subordinates, he makes use of non- financial incentives.

Non-financial incentives can be of the following types:-

1. Security of service: Job security is an incentive that provides great motivation to employees. If his job is secured, he will put maximum efforts to achieve the objectives of the enterprise. This also helps since he is very far off from mental tension and he can give his best to the enterprise.
2. Praise or recognition: The praise or recognition is another non- financial incentive that satisfies the ego needs of the employees. Sometimes praise becomes more effective than any other incentive. The employees will respond more to praise and try to give the best of their abilities to a concern.
3. Suggestion scheme: The organization should look forward to taking suggestions and inviting suggestion schemes from the subordinates. This inculcates a spirit of participation in the employees. This can be done by publishing various articles written by employees to improve the work environment which can be published in various magazines of the company. This also is helpful to motivate the employees to feel important and they can also be in search of innovative methods that can be applied for better work methods. This ultimately helps in growing concern and adopting new methods of operations.
4. Job enrichment: Job enrichment is another non – monetary incentive in which the job of a worker can be enriched. This can be done by increasing his responsibilities, giving him an important designation, increasing the content and nature of the work. This way efficient workers can get challenging jobs in which they can prove their worth. This also helps in the greatest motivation for efficient employees.
5. Promotion opportunities: Promotion is an effective tool to increase the spirit to work in concern. If the employees are provided opportunities for advancement and growth, they feel satisfied and contented and they become more committed to the organization.