Table of Contents
- Why is non-financial motivation important?
- What are the types of non-financial motivation?
- What to read next
What’s it: Non-financial motivation is an employee’s encouragement without involving direct monetary compensation such as salary. Rather, it involves factors related to the employee’s job and self. Several methods are available, including job rotation, job enrichment, and autonomy.
These methods are important for satisfying intrinsic needs. And, the effect may last longer than financial motivation because it involves an intrinsic drive to motivate.
Why is non-financial motivation important?
Non-financial motivation often makes employees more committed to their work. They are satisfied with their work and enjoy their working life. So, they can work more effectively and be motivated.
But, indeed, non-financial methods cannot work alone. Companies usually combine this with financial methods to meet basic needs and avoid employee dissatisfaction. When the dissatisfaction is minimal, non-financial motivational methods can motivate positively.
For example, autonomy satisfies the employee’s need for self-actualization. If the company provides the opportunity, employees are motivated. They can have a great opportunity to self-actualize, develop themselves and control their work.
But, before giving autonomy, the company needs to fulfill basic needs, say it is a fair salary and bonus. Inequities in salaries and bonuses can lead to employee dissatisfaction. Thus, autonomy is ineffective in motivating if the problem has not been resolved.
Herzberg’s theory of motivation provides important insights to explain it. This theory distinguishes two factors: hygiene factors and motivators. Hygiene factors represent factors to eliminate employee dissatisfaction. They must be there to keep employees satisfied, even if it doesn’t lead to motivation. On the other hand, if there is none, employees are dissatisfied, and it is difficult to motivate them.
Motivators represent factors to make employees satisfied and motivated. They play an important role in stimulating intrinsic drive, making employees grow psychologically. For example, after employees are satisfied with the salary and bonuses, the company can provide autonomy and work flexibility. So, employees can self-actualize and make boring work more interesting.
What are the types of non-financial motivation?
The methods for non-financial motivation can vary widely between companies. To be sure, it does not directly involve monetary compensation or money-related matters such as salaries and bonuses. Common examples are job rotation, job enrichment, teamwork, autonomy, and empowerment.
Through job enlargement, the company adds to the tasks performed by employees. Thus, an employee will perform more activities in their current role.
Job enlargements aim to increase employee effort and involvement in work. They get more assignments and jobs, allowing them to expand their skills and knowledge. In addition, this method reduces their boredom from doing the same activity over and over again.
Job redesign requires companies to reorganize and restructure employees’ roles, tasks, and responsibilities. It can involve job rotation, job enrichment, and job enlargement.
Job redesign aims to place the right individual in the right job to improve work quality, productivity, and efficiency. On the other hand, it also makes work more interesting and challenging, preventing employees from losing motivation.
In the process, this method requires employee involvement and agreement. Thus, the new job design aligns the company’s needs with the employee’s interest in their work.
Job enrichment involves increasing variety in an employee’s current role. The company gives them more autonomy and responsibility despite getting more tasks. Thus, they have more flexibility and control over their work. They can also be more independent in making decisions about their work.
Job enrichment provides opportunities for employees to self-actualize. So, they can use their full ability in doing the job. Besides being able to lead to higher satisfaction and motivation, their productivity can also increase.
Job rotation involves moving employees to new tasks and jobs that are different from those previously worked. That may involve them moving to another department or division to assume a newly assigned role. Or, they do other tasks and jobs in the same department.
Through job rotation, employees can learn new skills. They get more challenges to develop their competence. It also makes their work-life more varied and interesting, preventing them from losing motivation due to boring routines. Apart from that, they can also understand the overall business operations, which is useful when they occupy a high position and have to make decisions about the business.
Meanwhile, for companies, job rotation allows their employees to be more flexible. Employees can take on different roles when they need them. For example, when your key employee resigns, you have backups to do the work your former employee left before the new employee became effective. So, the business processes in your company are not disturbed. But, of course, it also requires you to provide other appropriate compensation.
Teamworking involves assigning several employees to complete a project or task. They share roles, work together, and take responsibility as a team to achieve the goals or targets set.
Teamworking is important to practice synergy and build good interpersonal relationships between employees. It can also reduce boredom in the current job. In addition, companies can gather different skills and insights to make projects more successful and faster to complete.
Delegation means giving authority to employees to take certain roles or decisions carried out by superiors. The company entrusts some tasks and decisions to employees.
Delegation is common in work environments where the leadership style is democratic. This method motivates employees by increasing their roles and control over their work. As a result, they train and develop themselves to be more responsible and accustomed to making decisions. In addition, the delegation also allows them to self-actualize.
Empowerment requires companies to give employees more autonomy, responsibility, and delegation. In addition, the company also provides adequate resources and equipment to employees; so they can work effectively.
Empowerment is important to get employees more involved in their work. They have more control over their role. The company gave them more responsibility to work on their own behalf. They are also more involved in making decisions about their work and have more flexibility. Finally, empowerment makes them more motivated because it allows them to develop themselves and advance in their careers.
Autonomy gives employees more flexibility and freedom in their current roles. It is usually accompanied by a delegation. Thus, they have more decision-making responsibility for their work. It also requires less or even does not require direct supervision.
Giving autonomy can lead to higher job satisfaction and motivation. Employees feel their boss respects and trust them to take more responsibility for their work.
Flexible working means giving employees more opportunities and freedom to complete their tasks. It can be related to when, where, and how they do the task. For example, companies allow employees to work from home or anywhere as long as their work is done. They don’t have to be in the office.
Employees enjoy such flexibility. They can achieve a better work-life balance. So, they can set a schedule and prioritize when to do tasks and handle family needs according to their needs.
Training is another non-financial method of motivation. It is a way of making employees more productive. Employees will be happy if the company gives them the opportunity to attend training. Through it, they can acquire new skills and knowledge, which are important to support their career advancement. Finally, they feel the company values them, encouraging them to give their best for the company.
Then, problems at work often stress employees. And training can open their horizons, enabling them to develop more creative ways of dealing with problems at work.
What to read next
- Non-Financial Motivation: Why Is It Important? What are the Types?
- Empowerment: Importance, Advantages, Disadvantages
- Autonomy in Management: Its Importance, Advantages, Disadvantages
- Teamworking: Importance, Advantages, Disadvantages
- Delegation in Management: How it Works, Advantages, Disadvantages
- Job enlargement: How It Works, Advantages, Disadvantages
- Job Enrichment: Importance, Advantages, Disadvantages
- Job Redesign: How it Works, Benefits
- Job Rotation: Importance, Advantages, and Disadvantages
- Flexible Working: Types, Advantages, Disadvantages