Non Monetary Practices – An Emerging Medium For Employee Retention & Motivation
Looking to the future, younger workers appear to be much more interested in career planning, competency based performance management & multi-rater evaluation. They don’t seem to be motivated by bigger office, superior title or more money but rather by flexible schedules, the potential to learn new skills & development opportunities. Thus, there is a need to provide non-monetary practices to motivate employees & for developing internal talent of the employees.
Non – Monetary practice like recognition programs including top-achiever certificate, a trophy & other non- monetary awards offer mechanisms to effectively motivate & retain valued employees who provide exemplary performance and/or meet specified targets. These practices are intended to reward staff employees whose achievements have resulted in a particular benefit. These practices can make a major difference to a company’s brand image. Its impact in the long run from increasing performance, improving productivity, retention & team-building cannot be underestimated.
Purpose Of Non Monetary Practices:
- Recognize individuals & teams, in a cost effective manner, for their exceptional contributions to their department or to the organization as a whole.
- Help organization to create an environment of shared success & commitment.
- Recognize that each individual can make a difference.
- Highlight behaviors & activities that have resulted in the organizational growth & showcase employees as role models.
Benefits of Non Monetary Practices:
- Motivates employees to perform better
- Costs the organization next to nothing
- Brings about tremendous self- esteem & satisfaction among employees
- Makes employees more loyal to the company
- Creates atmosphere where change is not resisted.
Non-monetary practices can equal 20-60% of the value of the cash compensation that an employee receives. For the current job seeker, starting salaries have barely increased, frozen or actually dropped. So, finding non-monetary benefits in an offer can be motivating when an employee evaluates it. These added perks can make a lot of difference & can help an organization to achieve higher retention rate, high employee motivation level by making the job atmosphere more interesting & appealing.
Contributed by:
Bosky Khullar
PR & HR Executive