Organization is productive
Equity in dealing with employees is another important aspect of non financial incentive to the workers. Treating employees with fairness and respect is vital in ensuring that employees build trust in the management of an organization. Use of favoritism in an organization while dealing with workers has negative effects on other employees’ morale. Practicing equity in the reward system ensures that all workers work hard to gain recognition from the management. Unfair rewarding an employee on the other hand leads to reduced productivity in other employees as hard work is perceived not to pay (ChernettBlackStar, 2008).
Non financial rewards just like the financial incentives are used by an organization mostly as motivating factors to ensure high productivity. Motivation is a major ingredient to ensuring that an organization is productive. Motivating the workers is vital and use of non financial rewards has been found to be effective in this area. Apart from motivating effects of non financial rewards, they are also used to help an organization retain workers thus reducing high turnover rates. Ensuring that the working environment of your workers is conducive ensures that the workers do not leave an organization.
Good and healthy working conditions are important in soliciting an employee’s
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Non financial reward system is advantageous on several grounds. To begin with, mostly use of non financial incentives is less costly or may involve no cost at all. This ensures that the company attains higher productivity without involvement of any additional costs. This form of motivating the employees also helps to reduce labor related unrest. Strikes and labor unrests mostly occurs where employees feel that their welfare is not incorporated in the running the affairs of an organization. Non financial rewards thus helps reduce or mitigate losses which may arise due to such occurrences.
Another advantage of the use of non financial rewards is that it helps solicit a workers commitment to the long term goals of an organization. This is important in the future growth of the whole organization. Financial rewards fails in that they are ineffective in creating loyalty and trust in employees. Non financial incentive rewards helps in this thus making it more desirable than the financial reward system. Non financial rewards also encourages innovation and creativity in part of employees thus the overall productivity of an organization (Price, 2007).
Use of non financial rewards also has advantages to the employee. One of the most notable advantages is in its memory value. Recognition for a task performed whether formal or informal remains for a long time than cash rewards. Items such as awards like trophies may last for as long as the entire life of a worker. This creates a sense of pride and achievement in the worker especially when appreciated by friends even in the long run. Another advantage of non financial reward system is that it is flexible and appreciation may be designed in a way to emphasize a particular achievement.
Use of non monetary rewards is also credited for the fact that it focuses on securing the future of an organization and thus its continuity. By ensuring employee commitment, the management is assured of future productivity and profitability. Use of team work is essential in encouraging workers to be cooperative especially the less effective and can also be used to clarify organizational goals. It also encourages multi skilling and flexibility in task performance (Williamson, n. d)