Non-financial Rewards to Improve Performance
- Non-financial rewards are motivators not directly related to money
Examples of non-financial rewards
- These incentives are usually intangible and include methods that lead to recognition, praise, job satisfaction, and better work-life balance
Types of Non-financial Incentives & Their Links to Motivational Theory
Incentive Type |
Explanation |
Link to Motivational Theories |
Empowerment |
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Team working |
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Job enrichment |
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Job rotation |
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Job enlargement |
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Exam Tip
When asked to asses a compensation package on offer, consider the following before answering:
- The context of the business: Is it a manufacturing facility or a team of creative designers?
- The Industry norms: Does the data provide any insight into what competitors are doing?
- The balance of the compensation package: ideally it should include appropriate financial and non-financial incentives to maximise employee productivity and retention.
The case study usually provides good data which helps you to answer the above questions so refer to it as supporting evidence.