Financial and Non-Financial Incentives
Benefits and rewards are one of the biggest factors of employee engagement and wellbeing within the UK’s employment. As this is so important, many, if not all businesses offer their employees rewards or incentives depending on the work they do or the goals and targets they achieve.
Although it is thought that all incentives and rewards are provided at a cost to the company or contain a substantial amount of money, this is not the case. It is highlighted that; non-financial incentives and rewards inspire and engage employees in ways that money is incapable of doing. Underlining that, not all rewards have to come at a cost. Non-financial incentives are as much, if not more of a powerful motivator that financial incentives.
It may be hard to think, what is a non-financial incentive? Many day-to-day activities or duties can be offered as a non-financial incentive. Something as simple as taking an employee out for lunch as gratitude for all their hard work, or even just giving that employee the attention they deserve for achieving or completing a task before its deadline. Non-financial incentive can go a long within a busy working environment.
Taking non-financial incentives further
Understanding employees needs and wants within a business determines whether an employee is happy and motivated with the incentives and rewards already provided. By taking a closer look on how employees feel about their achievement and their appreciations underlines how much further a business can take their incentives to encourage and motivate their staff even more. It is thought that, by following the 4 non-financial incentive categories below, tis will motivate and engage more employees.
Types of non-financial incentives
Typically, non-financial incentives follow 4 different categories. These are:
By incorporating these four different ways of non-financial incentives, this will enable incentives to be suited to everyone’s needs and wants within a business. By understanding the needs and goals of an individual, empowers their engagement and willingness to work harder for these incentives. Creating a well-balanced working environment relationship with their managers and colleagues.
Positives to non-financial incentives:
- Little to no cost involved
- Can be instant
- Powerful motivator
Negatives to non-financial incentives:
- Never lasting
- High expectations
- Always left wanting more
- Short term fix
- Not structured
- No wellbeing
Although non-financial incentives prove to be a beneficial factor of engagement and motivation within a business. Not all employees would prefer non-financial incentives against financial incentives. By determining this, it allows employers to understand the true meaning of reward and recognition and the effect incentives truly have on employees and their work ethic.