Empowering Employees for Organizational Success
It is the employer's responsibility to inspire his or her workforce to achieve positive outcomes now and in the future. It is a method of ensuring that they set lofty targets and fail to achieve them. Employees must be empowered in order for any company to progress and increase revenues since they are the cornerstone of any operational organization. Employees are interested in all aspects of a company's manufacturing and marketing processes. As a result, empowering them benefits both the company and the workers' competency.
Motivation: Monetary vs. Non-Monetary
There are two forms of motivation: monetary and non-monetary. Kind of motivation selected depends on the nature of the organization and even the functional system of the body. Sometimes it becomes difficult a manager or business owner to motivate employees since they are not aware of the type of reward to select. Each type of reward has got impact on employee performance. Monetary rewards are given in terms of money and it can be in form of contests, bonuses, piece rates, profit sharing and pay raises. Nonmonetary rewards can be given regarding trophies, personalized plaque, gift certificates, additional paid vacation days, parking space, Photograph of the employee taken in a prominent place and also lunch with the boss CEO (Bartol & Kathryn et al 71). It can be difficult to select between monetary and nonmonetary, but the following discussion describes that nonmonetary reward is better, both for the company and employees.
Memory Value of Non-Monetary Rewards
Almost everyone would like to remember something significant they did, and that can never be forgotten. Even after retiring from the job, one can have an identity for being an employee of a particular company, and they managed to attain various goals according to their competency. Therefore nonmonetary rewards provide a memory value but monetary rewards may not. For example, if a reward is in the form of a mug, photograph, t-shirt or plaque, such memory cannot be forgotten as it can be placed at home or maybe working desk (Sonawane & Pragya 259). On the other side, money given cannot be retrieved as it is spent immediately. It acts as a form of recognition, and someone feels motivated whenever they see. There is always an urge of working harder to receive a second award that can lead to more attention. It is also a way of motivating other employees when they see a plaque placed on one of their colleague’s desk. But in the case of money, no one will ever recognize efforts made by their fellow employees. Apart from the memory value, awards encrypted with the company name are also a way of improving the company reputation and congratulating that particular organization for rewarding their employees. It will always motivate other people to seek jobs and have the urge to work with that specific business organization.
Trophy Value and Recognition
The non-monetary reward is also a way of maintaining trophy value. The award remains robust and can be stored in homes or placed on the working desk. It can then be used as a showcase their hard work to co-workers and family members. It is proof that one was rewarded for a good job done (Bartol & Kathryn et al 74). Such a scenario can never happen in the monetary system of reward since when a cheque is received, no one is willing to show to fellow employees. Also, people may not believe, and eventually it is forgotten. The trophy value is of great importance to both the employee and company. It dramatically motivates fellow employees to work towards achieving individual goals to have recognition. Also to the employee, the award can be used when seeking for the same job but in a specific company. It becomes easier to secure the position if one provides proof that they have experience in that particular field, and at the same time, they received an award for the provision of better services. A trophy is also a way of maintaining the organization’s culture. If one sees such an honor, what goes in their mind is the provision of quality services, and therefore a business gains more recognition and can secure more customers and investors.
Flexibility of Non-Monetary Rewards
Also, non-monetary rewards are more flexible than monetary rewards. The type of award given can be customized to show the proof of attainment of a particular goal (Sonawane & Pragya 269). For example, if a company plans to use mugs and T-shirts, it means that every award has to be given to a particular group of employees. Rewarding is made easier and faster than when a company has to identify the specific amount of cash to reward employees. Some of them may feel neglected and have the feeling that they should have gotten more. Additionally, it is essential that every employee knows what their fellow employee receives. For instance, if two people set the same goal and one obtains a reward with a higher rank, then the other one will be motivated to check on what their fellows used to achieve a better award than them. Through such motivation and competition, a business organization receives better yields and returns since everyone struggles to attain the highest ranked rewards. It is different in monetary rewards since some employees may not be willing to share details concerning the amount of financial award received.
Cheaper and Manageable
Lastly, non-monetary rewards are cheaper and manageable than when compared to monetary. If a business organization has to give liquid cash to all their employees, then it may cost a lot of money, and then the body may be tempted to set higher goals that can be difficult to achieve. Therefore, in this case, a business has to select whether to incur the cost of issuing cash to all employees or to raise the goals to receive an award. It may, therefore, take long to achieve a particular rank, and finally, people lose the motivation. A monetary reward is usually something that is unique, and everyone else does not have. No matter how cheap it is, it has more recognition, and more people will appreciate it (Sonawane & Pragya 264). Cash may not be recognized so much since everyone has money and it is not unique at all. Take an example of an organization that intends to motivate 1000 employees for a yearly project well done. If the company selects to use the monetary method of rewarding, they have to give at least $700 to every employee and this sum up to $ 700, 000. If the same company plans to use trophies and each one of them costs $200, the total expenditure adds up to $200, 000. Therefore nonmonetary reward is cheaper and has a lot of impact on employee performance and motivation since it is highly appreciated.
In conclusion, non-monetary rewards are better than monetary rewards. It is tackled in the points discussed above. They have a memory value that one keeps to remember and this acts as a motivation to work harder. It also motivates fellow workers to struggle and achieve a similar award. The trophy value is precious since it is proof of work well done than when compared to money which is forgotten immediately. Also, nonmonetary reward techniques are flexible, and this ensures effectiveness when an organization plans to awards their employees. The different ranks motivate the low employees to struggle and achieve better awards. Finally, nonmonetary is cheaper than monetary. Therefore it is better for a business organization to select nonmonetary rewards and not monetary.
Work Cited
Bartol, Kathryn M., and Abhishek Srivastava. “Encouraging knowledge sharing: The role of organizational reward systems.” Journal of Leadership & Organizational Studies 9.1 (2002): 64-76.
Sonawane, Pragya. “Non-monetary rewards: Employee choices & organizational practices.” Indian Journal of Industrial Relations (2008): 256-271.
