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The most Effective Non-monetary Motivation Strategies for Employee Retention.
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The motivation level of the employees determines the overall capability of an organization in attaining its strategic goals and objectives. All companies, irrespective of industry and size need a self-driven team of workers that guarantees a high company’s output, productivity, and the overall success of the organization (Dr. Farooq-E-Azam Cheema, 2013). Non-monetary also known as non-financial incentives creates a team of dedicated, contented, and motivated employees who work devotedly, thus generating an optimum level of harmony, loyalty, and employee retention.

This research paper accentuates on the most effective non-financial incentives (tangible and intangible) for employee retention. One of the most effective non-financial incentives involves encouraging the workforce to participate in decision-making and giving them autonomy in their job (Dr. Farooq-E-Azam Cheema, 2013). Additionally, other valuable non-cash motivations for employees’ retention include; providing a conducive working environment, assigning to employees challenging responsibilities, rewarding excellent performance through small gifts and letters of appreciation.

Non-financial motivation is a useful incentive tool that addresses not only extrinsic but also intrinsic motivation concepts (Dr. Farooq-E-Azam Cheema, 2013). Tangible non-financial motivations such as giving free food and drinks, tickets to movie theatres have extrinsic incentive powers. Similarly, intangible incentives such as friendly greetings by the managerial team, and company picnics may also have extrinsic motivational forces (Goffin, 2001). Conversely, incentives related to employees’ duties such as training programs, flexible working hours, and opportunities to take part in the decision-making lead to the workforce intrinsic motivational powers.

In conclusion, non-financial motivations offer multi-dimensional employee motivation in the workplace whereas monetary incentives offer one-dimensional motivation. The non-monetary incentives address multiple requirements of the employees. Such needs revolve around autonomy, a sense of belongingness, social interaction, recognition, attention, a feeling of achievement, respect, and a feeling of self-worth. Reasonably non-financial motivation is a better tool for employee retention as compared to monetary financial incentives.

Bibliography

Dr. Farooq-E-Azam Cheema, S. S. a. R. A., 2013. Impact of Non-monetary Rewards on Employees’ Motivation: a Study of Commercial Banks in Karachi. Journal of Management and Social Sciences, 9(2), pp. 23-30.

Goffin, M., 2001. A three component conceptualization of organizational commitment. Human Resource Management Review, 11(1), pp. 61-89.