Human Resource: Monetary and Non-Monetary Motivation

Motivating People in the Workplace

Introduction

Employees are one of the supreme considerations regarding the progress of any firm. The Human Resource sector needs, therefore, to design all measures and effectively stage them to ensure the employees are well motivated for the different activities they are carrying out through the firm (Christie, et al., 2012, p. 72). However, in the face of motivating the employees, there are challenges posted with either monetary or non-monetary motivations. Both motivation ways are equally important, but in the real world establishment, one of the ways needs to outdo the other. The case thus brings on board the debate on which of the motivational tactics is the best. Between monetary and non-monetary motivations, a great deal of sources suggests that monetary motivation does a significant amount of job in motivating people (Aktar, Sachu & Ali, 2012, p. 12). It turns out; therefore, that money is the most important factor for motivating people in the workplace. However, a closer look into the two suggests otherwise.

Monetary Motivation

Monetary motivation or incentives is one of the most popular or common ways used in appreciating and/or motivating employees. The nature of the reward is money-based after an employee meets or exceeds the expectations for a given role in the firm. In this respect, there are various forms of monetary rewards an employee receives in this case, which include salary or wage increments, bonuses, profit sharing as well as having a stock option (Choi, Cheong & Feinberg, 2012, p.495). In most cases, these monetary rewards are tied along with promotional expectations for the employees. Through statistical approaches, it stands out that this one of the best considerations regarding the motivation of employees. The tangibility of the reward and the satisfaction coming along with the reward is distinct, implying a wide number of benefits with this case. Monetary rewards are extrinsic to work. 

Non-Monetary Motivation

Non-monetary motivation imply rewards associated with the use of other means other than money or cash to recognize, appreciate and motivate an employee for a certain task well done. There are a number of activities that are associated with this course of activities, most of which relate to promises for an opportunity. Examples of these rewards include status, appreciation and recognition, work-life balance, delegation, working condition, job enrichment as well as job security (Christie, et al., 2012, p. 74). For status, the employee is motivated with better designations and status, which include good titles that convey the importance of that specific position. Other than this, improvements in the working conditions of the employees as well as the enrichment of the job for the employees to incorporate tasks that are more challenging for better performance is vital. The case thus means the job security for employee and termination of temporary employment. Non-monetary motivation is intrinsic to work. 

Literature Review

Advantages of Non-Monetary Motivation

Besides the popular and traditional monetary reward system, study and researches show that non-monetary motivation and reward systems play a significant role in employees’ motivation. As earlier stated, non-monetary reward system involves all measures and systems that do not use money as the main reward system for the employees (Kvaløy, Nieken, & Schöttner, 2015, p.189). The case implies that the firm uses other means that have proved to improve the output and hence motivation of the employees. Such rewards include improvements in the working environment of the people, development of their careers as well as recognition and status development. The main aim of the reward system is to improve on the comfort ability of the employees in a given firm, a case that facilitates their motivation and consequently improved work output from them (Kvaløy, Nieken, & Schöttner, 2015, p.194). In this sense of reward system, there are multiple benefits and advantages, which make the system appropriate. 

To begin with, the system encourages improvement in the working conditions at a specified workstation. Beyond the monetary rewards and benefits, every employee anticipates for a clean working environment, an environment that will stimulate more productivity from them (Read, 2005, p. 271). Non-monetary reward system hence places a significant emphasis on the creation of clean working environments, which facilitates effective and productive working from the employees. A proper environment that has been created by the non-monetary reward system is thus greatly satisfying and thus enables the employee to be built up. Further, with good working environment, there is flexibility attained in the course of time, hence the individual is able to be greatly productive in the course of time. 

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Immediacy in appreciation counts a great deal with regards to building up the motivation for any employee (Kvaløy, Nieken, & Schöttner, 2015, p.196). Non-monetary appreciation is one of the schemes that are widely used in this case. For instance, in the event that an employee has managed to reach a given expectation with regards to the standards set by the firm, instant appreciation greatly counts. A public “thank you” serves a great deal of purpose and will always linger in the mind of the individual. Additionally, the case prompts instant motivation, which serves to ensure the individual reaches maximum productivity (Reid, et al., 2015, p.254). Rather than having to wait to for the processing of cash and cheques, instant appreciation therefore works significantly well to always motivate the employees and remind them that their efforts are recognized and equally appreciated. Such a system motivates the employees hence the best of the systems to embrace. 

Non-monetary motivation and reward system also involves the case of offering trophies to the employees. The value and imprint of the trophies in the life of an employee is vital (Jeffrey, 2004, p.209). Primarily, the trophy remains there to be seen and act as a reminder for the success that was achieved by the employee at hand. Be it an honorary recognition or an informal trophy in form of a plaque or even a mug, the memory of it is not easily forgotten. Unlike the cash that will be easily spent and gone, the trophy has a long-lasting effect (Jeffrey, 2004, p.209). In the event of time, the trophy can be shown to co-workers and friends and thus be a point of joy. Besides motivation of the employee, the trophy can also be used to motivate other people around the employee or the recipient of the trophy. Such may include his family, friends and relatives; a case that motivates the entire community towards diligence and faithful service. 

Discussion

Disadvantages of Monetary Motivation

As evident through the introduction, monetary motivation stands out as the supreme way that is used by a number of people to ensure motivation of employees. However, the validity of this scheme in the current generation is at stake considering a number of demerits that come along with it (Odunlade, 2012). For instance, it is important to note that money is not the primary motivation for all groups of people in any given firm. Using money as a form of appreciation may be viewed in a way like the employer was trying to measure the value of the efforts by the employee and thus settled for a specific amount. The amount may be lower that the input that the employee had placed into the whole deal hence instead of motivating them, the monetary reward may be discouraging (Odunlade, 2012). The case thus posits that monetary motivation is a great challenge and thus needs to be acted upon with utmost care to ensure it serves the purpose for which it was set for. 

Additionally, different employees have different interests when it comes to their motivation with regards to appreciation (Hammermann & Mohnen, 2014, p.3). For instance, the younger generation of employee may need more time travelling and touring places as an appreciation from the firm they are working for. On the other hand, the older generation, which constitutes of married people, may require more time of being with their families; spouse and children; or in other cases having them receive leisure vouchers, gift cards or even earning a family holiday. With the diverging needs from different people, it follows then that the monetary motivation for different employees is a great challenge (Hammermann & Mohnen, 2014, p.7). The needs of the people vary and hence generalizing to use money as a main motivation factor is inappropriate. The case means, therefore, that non-monetary motivation may be the best of the platforms to ensure the employees are appreciated well enough. 

Moreover, monetary reward systems come along with the challenge of inconsistency. In this case, the bonuses and commission earned by the employees are always subject to profitability attained by the company (Hurunavamwe & Kanengoni, 2013, p.3929). The scenario means that in the event the organization at hand does not make profit, then it follows that the appreciations will not be gained. Further, the changes in the values of money due to economic instability may result into inconsistencies and hence improper motivation of the people. For instance, there are times when ten dollars made a significant difference in the lives of the people, hence being appreciated with such meant a lot (Hurunavamwe & Kanengoni, 2013, p.3929). However, in the current establishment, ten dollars may just be a drop in the ocean hence means nothing. Similarly, financial motivations readily disappear into the salary or wages hence their recognition is not easily recognized. It follows then from the discussion that a better form of appreciation and motivation for the people needs to be developed. 

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Conclusion

The primary trigger to effective production from a wide sect of individuals pertains to motivation through appreciation. The case attracts two main sets of activities that relate to motivation; monetary and non-monetary motivation (Aguinis, Joo, & Gottfredson, 2013, p.245). With these, money has been said to be the key motivator for people in the world, but through the discussions in the paper, it may not be. There are pros and cons that relate to either of the sets, but the cons of monetary motivation may appear more realistic and applicably impeding to the progress of the people. Some of the main considerations that relate to the cases above majorly revolve around consistency. The nature of monetary motivation is inconsistent, considering the changes in the value of currency as well as the divergent needs of different people (Weber, 2008, p.257). As per the case above, it thus remains that non-monetary motivation is the appropriate system that needs to be triggered and appreciated with regards to the motivation of employees in a given workplace.