Non-financial incentives inspire and engage employees in ways that money is incapable of doing. Non-financial incentives are the types of rewards that are not a part of an employee’s pay. Typically, they cost the company little or no money, yet carry significant weight.
Some of the common non-financial incentives are:
1. Status: Status refers to reducing the position and prestige associated with a job in the organization. Higher status helps to satisfy safety and social need, esteem needs, and self-actualization needs. Management provides status symbol facilities to its employees to motivate them. For example, costly furniture, well-furnished AC cabins, a car, etc.
2. Organizational climate: It refers to the characteristics which describe an organization and distinguish one organization from the other. Characteristics include individual autonomy, reward orientation, open communication, etc., which directly influence individual behaviour in a positive direction. Management helps to create an organizational climate and tries to motivate employees in this healthy working organizational climate.
3. Career advancement opportunity: Every individual wants growth and development in his life. When employees are provided opportunities to grow, then they feel more satisfied and become more committed to organizational goals. For example, the opportunity for promotion works as a tonic in encouraging employees to improve their performance.
4. Job Enrichment: It is concerned with designing jobs that include a great variety of work. Varieties of work make the work more challenging and interesting. Instead of doing routine jobs, enriched jobs offer opportunities for recognition and growth. It also improves job satisfaction and motivates employees.
