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. 

Explain four non-financial incentives that can help in motivating the staff.

Mention four non-monetary incentives that can be given to motivate an employee.

Answer 1

Besides the monetary incentives, there are certain non-financial incentives that can satisfy the ego and self-actualisation needs of employees. The incentives that 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 in maximum effort to achieve the objectives of the enterprise. This also helps since he is very far from mental tension, and he can give his best to the enterprise.
2. Praise or recognition: 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 organisation should look forward to taking suggestions and inviting suggestion schemes from the subordinates. This fosters a spirit of participation among employees. This can be achieved by publishing various articles written by employees to enhance the work environment, which can be featured in the company's magazines. This is also 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 operation.
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, and 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 organisation.