Monetary incentives function as the highest motivational level compared to personal acknowledgment, fringe benefits, or other rewards
The key assets of a company or an organization are the resources that exist in them. For many companies, success is defined by how well they can maintain their resources and the successful use of their human resources. These are some of the reasons why companies stress on which will help impact and offer motivation to employees.
Employee performance relates to their ability which is a naturally acquired talent or skill that helps individuals to perform successfully in their job description. motivation is the sole reason why many employees act in a certain way. It is the manager's responsibility in ensuring that organizational goals are met thus the need for motivation which leads to better performance. Motivation is versatile in that it can change and thus public and private companies need employees who are effective and efficient and do not show an unwillingness to work.
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Many motivated employees are always energetic and thus are known to be creative towards achieving the long-term goals that have been set by the organization. One type of motivating employees is by use of incentives which help stimulate employees to continue having the hunger and urge to doing things. Incentives can be in the form of monetary value which serves as a recognition by the organization for a job well done for a particular period.
Many companies consider monetary incentives whenever it comes to motivating their employees. One needs to, however, note that there are other additional factors that give employees encouragement to working or offering their best whenever it comes to learning. Some of the factors include Job security, promotion, pride among others. Non-monetary incentives also play a big role in infusing enthusiasm for an employee to continue performing.
Economic decline and competition among various markets have made companies consider other non-monetary incentives which are increasing in popularity with many business firms. Such examples include increased recognition by the company, flexibility of hours and also opportunities in contributing and sharing your ideas that can help steer the organization to greater heights.
Every human resource manager in each company faces a problem in searching for ways that address the needs and goals for every employee to address the growing need of motivation and understanding how it works ensuring customer loyalty with the right incentives. A properly designed incentive plan is critical for management thus ensuring that there is a total commitment in executing strategies and productivity. Recent studies reveal that many big companies spend lots of money in search of goals and incentives that will help increase an employee’s motivation since there lies a difference to how both the management team and the employees perceive goals.
It is evident that managers search for workers who have a high adaptability to change and are high in productivity whereas employees are known to want opportunities for growth with an organization not forgetting a competitive incentive that will make them motivated. Studies reveal that employees of lower level give much attention to monetary incentives hence the use of only money to motivate these employees often leads to problems since many different people are motivated by various factors. Some may be motivated by financial goals while others by professional or personal goals which is, therefore, why this type of incentive cannot be used by an organization in motivating all staff members of different levels.
The reason for the provision of incentives is to give the needed enthusiasm that will help workers offer greater output. Many organizations find it difficult to continuously give out incentives while at the same time increase their wages and remunerations. Incentives are known to offer a connection that makes the worker understand their sense of recognition. Non-financial incentives, on the other hand, include certificates, discounted rates whether you are working in an insurance company or a hospital at your workplace. It is a common method used by managers to try and devoid workers with monetary rewards. Some of the non-monetary incentives include job promotions, recognition by the management team, career development and fringe benefits, therefore, both incentives i.e. monetary or non-monetary have an impact to every employee but it is dependent to a worker’s perception.
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