Relevance of Non-Monetary Incentives in an Organization

Abstract

Monetary Incentives form an important part of an employee’s life, but there are some things which money can’t buy. The main objective behind providing incentives is to motivate employee to provide best of his abilities. Incentives like flexible work hours, payroll or premium contributions, training, health savings or reimbursement accounts, or even paid sabbaticals are equally important. These are called Non monetary incentives. When organizations pay attention to non-monetary tools such as opportunity of increasing holiday and family benefits, the employee may perceive the organization as a supporting and caring organization. Rewards are important factors that explain certain job aspects that contribute significantly to the organization such as job satisfaction. The major objective of the study is examining the importance of non monetary incentives in an organization.

The study is directed towards examining different dimensions of Non Monetary Incentives. Comparative study of monetary and non monetary incentives has been done which bring us to the conclusion that in order to bring “good work motivation” and not only “money motivation” different types non monetary incentives must be introduces in an organization. Non-monetary recognition can be very motivating, helping to build feelings of confidence and satisfaction.

Keywords: Non Monetary Incentives, employee, motivation, job satisfaction

JEL Classification: J23, E58