How to Motivate Employees with Non-Monetary Compensation
Hiring and retention of employees can be a difficult task for organizations to conduct every now and then. Considering the current state of the economy, a company with a high turnover rate will suffer more of an economic blow due to financial losses resulting from employee hiring and training. Based on this, each organization is advised to spend their money wisely to recruit top talents in their workforce. However, money is not the only thing that employees need for them to be retained in the organization. While financial motivation can be a great way to attract certain top talents in the organization, it cannot always keep it. Non-monetary compensation can be a better replacement in attracting and retaining top talents in an organization, as it helps to keep the employees satisfied. Organizations that use non-monetary strategies are often rewarded with regard to the retention of employees and experience better revenue results.
How to Motivate Employees with Non-Monetary Compensation
There are various non-monetary strategies that can be used in an organization in an attempt to retain top talents. One of them includes the recognition and praise of the employees. Overall, not all employees and to be highly paid in an organization as a way of rewarding them for their valued time. However, most of the employees want just to be valued for their work, effort, and time in the organization. Money cannot buy everything in the world, and this is true when it comes to motivation and retention of employees. According to statistics, 55% of the employees feel that they require praise and attention in their workplace, especially from their supervisors. When this happens, the employees feel that they are cared for and valued by the organization, and this has a positive impact on both the employee and the organization.
According to research that included money and non-monetary benefits as a motivation in the workplace indicated that recognition from the manager was ranked high. Other studies conducted in that line regarding non-monetary benefits have revealed similar results in that employee recognition has been shown to play a crucial role in the well-being of any work environment. Other researches have indicated that 50% of the employees believe that being thanked by the managers and supervisors helped in improving their relationships and also helps in building trust with those in the high ranks. Besides, other studies conducted in the same line indicated that 69% of the employees would work harder if they felt that their efforts were recognized or better appreciated. Based on this, any organization, regardless of the line of specialization, is advised to acknowledge and praise their employees as a way of recruiting and retaining top talents in the organization.
Another non-monetary strategy that can be used by organizations to attract and ensure retention of top talents includes offering physical rewards. In this case, not all the rewards offered to the employees are free, as some of the gifts offered to employees actually cost a lot of money. Based on this, non-monetary refers to the fact that employees do not directly receive rewards in monetary form. In some cases, an organization can use an expensive physical reward in the form of a gift such as a ticket to a show, a gift card to a high-end restaurant, or even a mug with the organization’s label.
By doing this, the organization uses non-monetary rewards, which to the employees are priceless as it is a form of recognition. Something tangible can be preserved by the employees to act as a reminder of how they are appreciated in the place of work, a constant reminder of how well they are doing in their place of work. Based on this, the key to using non-monetary employee compensation by offering physical rewards is that the employees must be able to earn them. No single employee should be given special eligibility for the said rewards, and this is because the positive effect might as well be lost.