Non-Financial Motivation of Employees

  • Devansh 
  • 10 min read
Non-Financial Motivation of Employees

If we turn to Maslow’s theory, it becomes clear that financial incentives do not completely cover a person’s needs. Non-financial motivation of employees allows you to inspire the team to achieve the goals of the organization. It is a powerful tool that leaders must use.

For staff to be motivated to get the job done, incentives need to be supplemented with non-material factors. They are aimed at satisfying the highest needs of a person, for example, the thirst for respect, the realization of the qualities inherent in him. The quality of work of employees depends on how well the motivation system is developed. This affects the performance of the company: it either makes a profit or suffers a loss.

The leader should consider that even workaholics can be more effective if given good incentives.

How to Build a System for Non-Financial Motivation of Employees?

Non-Financial Motivation of Employees
Non-Financial Motivation of Employees

Non-financial motivation of employees is a management style based on the use of non-monetary incentives. We can say that this is a set of measures designed to increase employee loyalty and improve the working conditions of staff.

Non-material motivation is aimed at maintaining a healthy atmosphere in the team. She successfully raises the team spirit, increases labor productivity.

In order to inspire the team, help it achieve its goals, the leader must choose the most effective ways to stimulate work. At the same time, it is necessary to take into account the mentality of the employees and pay attention to the emotional state of the team members. Psychotypes of personality are of great importance.

The system of non-material motivation created at the enterprise must satisfy the following conditions:

  • Be aimed at solving tactical problems.
  • Have universal coverage.
  • Consider at what stage of its development the organization is.
  • The methods must be chosen correctly, the manager must consider the true needs of the team members.
  • Introduce an element of novelty.

It’s not just about encouraging employees to do better. The system should be aimed at solving the tactical tasks of the enterprise. For example, an organization decided to open branches in the regions. The manager must form teams of people in these departments who can work according to the standards adopted in the head office. In this case, the motivation system should be built so that employees can effectively learn new things. These can be team building trainings or workshops that increase the effectiveness of communications.

It is necessary that non-financial motivation covers all categories of employees. Usually, when it comes to motivating staff, the emphasis is on those professionals who bring profit to the organization. Don’t do that. In addition to them, secretaries and workers in the shops work in the organization. They need not only to be included in the motivational program, but also to express appreciation for their work.

Of course, the task becomes more difficult if the enterprise is large. Large companies often employ thousands of employees, and the CEO cannot know everyone by sight. Therefore, he must build a motivation system so that line managers communicate more with people from their team. They have to figure out what exactly can motivate each employee.

It is necessary to consider the stage of development of the company. If the company is just starting its activity on the market, then the main task is to increase the level of enthusiasm. This is especially true for family businesses.

The organization is developing, the number of employees is increasing. In this case, the incentive programs must also change. Recognition of the merits of each employee becomes the main reference point. At the same time, it is important to focus on the possibility of recognizing his contribution to the development of the enterprise at a higher level, for example, a division and in front of the entire team.

What Maslow was Talking About?

Non-Financial Motivation of Employees
Non-Financial Motivation of Employees

The leader must choose the right methods of non-financial motivation and avoid mistakes in their selection. People believe that what motivates them will motivate others. This is a false belief. For a motivation program to truly motivate employees, it is necessary to collect data on true needs.

When making decisions about employee incentives, a leader can rely on Maslow’s pyramid. He is obliged to isolate the needs that are leading for the employee. Based on this information, he needs to move on to developing a motivational program.

Some of the employees strive to meet physiological needs. These people should raise the level of wages – then they will feel comfortable. Another part of the team may feel the need for safety – a friendly atmosphere in the team is important for such people.

Social needs include support from management, networking with colleagues. Employees whose primary need is respect value management’s attention. They want their work to be appreciated. The leader must take this point into account.

The need for self-realization is characteristic of creative workers. They will react well if the management offers them to lead new projects that require creativity.

Having achieved the desired, the employee may want something new. His needs change, move to a higher level. Incentive programs shouldn’t be common. It is necessary to constantly work on new proposals. It is useful to introduce new non-material methods of personnel motivation once every six months .

Most Useful Tools for Non-Financial Motivation of Employees

Non-Financial Motivation of Employees
Non-Financial Motivation of Employees

It is necessary to choose the right types of non-material motivation of personnel. The impact of motivation can be divided into addressless and targeted. The first group includes those measures that are aimed at improving the quality of work of all specialists. This is the holding of corporate events, outdoor events. The staff will be interested in an extended social package, specialists will highly appreciate participation in trainings aimed at improving their qualifications.

You can increase the interest of employees in professional activities by creating better working conditions for especially successful people. It can be more modern technology, flexible working hours, comfortable and beautiful furniture and a coffee maker in the office, or other non-material motivation of staff. The staff for whom the organization creates all the working conditions are unlikely to quit and look for work from competitors.

Targeted motivation includes praise from the management and congratulations to the employee on his birthday. Others will appreciate being promoted to a higher status. This helps to meet the need for recognition.

Methods of non-financial motivation of personnel should be clear to everyone. The same applies to the selection criteria for the winners. In this case, other members of the team will be interested in the work.

To maintain healthy competition within the team, a competition can be held. If the leader assembles the game system, then the teams must clearly know what the competition is for. You should not adopt the Soviet experience, when photographs of the winners were hung on the board of honor. This is not enough.

Participation in an international conference or accompanying the director during his working trip will be a powerful incentive. An employee does not have to be present at the negotiations, but the very fact of being invited and presented by a partner as a valuable employee will increase his status. The specialist is also motivated by other methods aimed at increasing his importance.

The main prize in the competition can be a week-long vacation trip. This is a great intangible motivation for salespeople and other team members. Staff must understand that everyone can win the grand prize if they put in the effort. The judging system must be transparent.

Other methods of non-financial motivation should be applied to ambitious employees. The main thing will be the opportunity for career growth. By itself, it cannot be considered an incentive, it is a common tool for motivation. The incentive can be called the valuable benefits that the employee receives after the promotion. This is a higher level of remuneration, own office, recognition of management and colleagues. This also includes the presence of subordinates, responsibility for large projects, the ability to prove themselves at a higher level.

The staff will appreciate the flexibility to choose from a flexible schedule and additional days off with the same pay.

Among the methods of non-material motivation, it is worth highlighting the participation of team members in training programs. It can be personal when an invited expert conducts classes with an employee. When teaching in groups, the trainer works with specialists who are united by a common specialization. Collective training is aimed at improving the professionalism of all employees.

Public praise is a powerful tool. Unfortunately, it is very often neglected by managers. If the employee has completed the task, coped with it perfectly, then his successes should be noticed. Public praise from the whole team maintains a healthy zeal for work.

Types of Material Motivation

Non-Financial Motivation of Employees
Non-Financial Motivation of Employees

Leaders often use material motivation. It can take the following forms:

  • payment of bonuses;
  • increase in remuneration for the successful completion of the project;
  • extended social package.
  • material methods of motivation are introduced in order to increase the profit of the enterprise due to the well-coordinated work of the team. In an effort to get more money, employees overfulfill their plans.

The system of non-financial motivation of employees should be developed by professionals, because it increases employee loyalty. It is desirable to involve experienced psychologists in its creation. Stimulating measures will retain highly qualified personnel in the field. In addition, different types of financial assistance will increase the level of discipline. The fact is that specialists are afraid of losing material wealth due to offenses.

An enterprise that has introduced a system of material motivation increases the level of social protection of employees. This has a positive effect on the company’s image, because in the eyes of society, it appears as a respectable employer.

Material and non-financial motivation of employees is a set of measures aimed at achieving the company’s goals. The management must use combined methods of stimulating employees – then labor productivity will be increased.

Monetary remuneration and bonuses are the main types of material motivation for personnel. You can evaluate the work of specialists on a quarterly basis or once a year. In the latter case, the premium must be substantial. Other types of incentives are percentage of sales, insurance, and benefits.

An experienced leader uses different types of motivation, skillfully managing a team. The combination of methods allows you to achieve high labor results.

You may also like to read: What are Intrinsic and Extrinsic Motivation?

Conclusion

Non-material incentive measures should be used in enterprises along with material incentives. This approach creates healthy competition in the team, creates comfortable working conditions and increases work productivity.

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