Employees are the most important asset for any organization. As the organizations are realizing the importance of the employees as an asset to the company, the importance of employee motivation has become one important subject in the field of management. Since employees can be considered as an asset with infinite value, motivating employees has become an important intention of many organizations.
Employee motivation can be financial or non-financial. Through this article, we will discuss the financial ways of motivating the employee as well as non-financial ways of motivating employees.
Financial Motivation
Financial motivation is motivating employees by providing financial benefits. This can be considered as the most effective way of motivating as financial benefits can encourage employees to reach the set target or achieve better. There are several types of financial benefits that can be seen in an organization.
01. Bonuses
Bonuses can be one of the most important motivation factors for employees to perform better. Some organizations provide guaranteed bonuses while others provide performance bonuses. Guaranteed bonuses usually do not do much in encouraging employees to perform better but it creates a positive attitude on the employees about the organization and indirectly helps to increase workplace productivity.Performance bonuses directly help to increase employee motivation. Employees are aware that if they perform better they can obtain a higher amount of bonus and it motivates them to achieve better. Bonuses are usually provided annually or bi-annually.
02. Incentives
Incentives are given on the achievement of sales targets. Employees are assigned with a specific target for the given period and achievement or over achievement of the target is the eligibility for the incentive. Incentives are decided based on the number of sales they have brought in to the organization.
03. Commission
Commission is a type of financial benefit that can be seen in sales-oriented organizations. The employees get a percentage of the total value of the sales they bring in to the organization. This is an effective employee motivation method as the employees are encouraged to bring higher values to get better financial benefits.
Non-Financial Motivation
Non-Financial motivation is not super effective like financial motivation methods. But it has a positive impact on the employees as they feel like the organization is caring enough to provide them a benefit for their effort in work.
04. Training Programs
Providing special training programs is one way of motivating employees. Most of the organizations send the best performing employees on overseas training programs for them to explore more opportunities and to feel prioritized. This can beneficial for the organization as well as the employee.
05. Vacations
Providing short vacation for the best performing employee is another way of motivating the employees. They are encouraged to work hard towards goal attainment expecting to enjoy the vacation.
06. Gift Vouchers / Gifts
Distributing gift vouchers or gifts is another way of creating employee motivation. This creates a positive attitude for the employee towards the organization and they are encouraged to achieve better. This is the most common non-financial benefit that can be seen in organizations.
Employee motivation methods work as a way of encouraging employees to achieve better. Further to that, it helps the underperforming employees to perform better in the future to get financial or non-financial benefits. It creates a healthy competition between the employees and encourages them to achieve bigger and better every time.
Employee motivation can be considered as one key sector the employers should invest in as the motivated employee can drive the organization towards success no matter how hard the procedure is and how many obstacles are there. By simply selecting the best motivation method out of the given methods, any organization can motivate their employees and achieve success.