Non-financial incentives are payments which are non-monetary and aaccorded to employees, yet they do not form part of the employee's pay schedule. Non-Financial incentives have become one of the most common tools for employee motivation. A good number of human resource managers across the globe have adopted the use of non-financial incentives as an appropriate tool to motivate employees to become more productive and also to retain employees by enticing them to stay in the company rather than leave for perceived greener pasture. Non-financial incentives may come in the form of recognition, leadership opportunities or rewards. They range from shopping vouchers to, opportunities to lead certain projects, organized dinner with high profiled leaders among other incentives.
Non-financial incentives have become more popular in the recent past and are employed by many business organizations in motivating their employees and getting them to stay and become more productive in their work. A survey by McKinsey and Company (2009) revealed that non-financial incentives motivated employees better than money and salaries. The very survey further revealed that such non-financial incentives that were hailed by employees included attention from leaders, praises, and applause from leaders, commendation, chances to lead particular projects among others. Employees prefer non-financial institutions because they bring about long tie rewards and such rewards which do not fade off like money.
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As a Human Resource manager, I would select a reward policy that is unique and gets to relieve my employees of their home chores or responsibilities. Ritchel (2012) reports innovation in non-financial incentives which involves moving away from the office and moving to the employee's house. Deloitte and Evernote have issued this kind of perk to their employees. I would motivate my employees by offering them housecleaning services as had been done by Evernote. Giving incentives in the employee’s house seems more motivating because of its new status.
References
McKinsey and Company. (2009, November 1). Motivating people: Getting beyond money . Retrieved from McKinsey and Company: https://www.mckinsey.com/business-functions/organization/our-insights/motivating-people-getting-beyond-money
Ritchel, M. (2012, October 19). Housecleaning, Then Dinner? Silicon Valley Perks Come Home . Retrieved from The New York Times: https://www.nytimes.com/2012/10/20/us/in-silicon-valley-perks-now-begin-at-home.html
