Non Financial Rewards Essay

Introduction

The concept of employee satisfaction has great impact on human resource management and compensation. Companies use different techniques to make happy and inspire their employees. Success of an organization in achieving its strategic objectives heavily relies on the motivation level of employees. All organizations, regardless of sector, size or industry require motivated workforce that ensures the competence, high organizational output and success of the organization. De-motivated employees are likely to put in little or no attempt in their jobs, make low quality work, mostly stay away from their workplace and even exit the organization if provided opportunity. Employees who are motivated to do their work are likely to be determinant,

If employees are highly satisfied with their work then they become more productive and faithful to their work. Rewards in the form of money considered as the best tool to motivate employees. However, organizations also use different types of non financial rewards to enhance the satisfaction of their employees and increase the motivational level of the employees.(2) According to Locke 's explanation job satisfaction is a positive emotional feeling, which comes as a result of the comparison of employees expectation and what he actually gets from it. Non financial rewards play important role to satisfies and motivate the employees. Non financial rewards involve promotion, job enrichment and job autonomy. Monetary rewards give considerable levels of employee satisfaction at some or no cost. Employees are more likely to be motivated and satisfied through the use of non monetary rewards. Non financial Rewards have been a key element in improving employees satisfaction, in order to increase productivity as well as sustain competitive

In some cases it is not pre-defined, such as a spot award, and in general it doesn 't have a short-term variable element.(5) The concept of recognition concerns particular notice or acknowledgement of something done. A general example of recognition is an individual receiving a reward for bravery. Thus recognition may encourage and support certain behaviors, it does not have the same ‘in order to’ relationship as reward.(4)The central tenet of the difference is that rewards are promised from the beginning, whereas recognition is afforded in a post hoc manner. There is a big difference because reward and recognition can impact employee motivation in different ways. Many organizations fail to make an adequate distinction between recognition and reward. The consequence is that organizations often make the false assumption that all that is needed to enhance employee engagement and motivation is to find the right incentive. However, the problem with this line of thinking is that recognition and reward represent two distinct mechanisms of human