Non-Monetary Rewards in the Workplace

Non-Monetary Rewards in the Workplace

People leave companies every day because, one does not think he or she is a valuable asset to the company. One would need to consider the real reason employees have left companies in the United States. For the employee to believe that he or she is part of the company, companies need to constantly give non-monetary rewards to their employees. This paper will discuss non-monetary rewards by persuading the idea of non-monetary rewards need to be given to employees. Non-monetary rewards should be given to employees to meet the needs of a company financially and to increase productivity objectives that the company may have.

The objective of every company is to become successful and profitable. For a company to become a Fortune 500 company, it needs to have dedicated and hard-working employees to build the company to this level. According to Nelson (2004), 78% of employees indicated that it is very or extremely important to be recognized by their managers when they do good work. Companies will lose valuable employees if the proper motivation and recognition is not given to the employee. If an individual does not consider himself or herself to be an important part of the company, this individual will choose to leave the company.

According to Allen and Helms (2002), research confirmed the importance of regular expressions of appreciation by managers and leaders to encourage behavior of an employee to reach a strategic goal. A manager’s responsibility is to praise the employees; how a manager rewards is ones sole responsibility. Managers need to give the proper respect to the individual who has accomplished the work. According to Giles (2004), effectively recognizing your employees and their contribution needs to be a priority in your business. This author believes that an employee needs to produce the quality of work that a manager is expecting of him or her in order to receive this type of non-monetary reward. According to Giles (2004), research shows that this type of reinforcement not only results in happier employees but also in a more productive workforce.

Therefore, what types of non-monetary rewards are effective? Non-monetary rewards could be given in the following ways: recognition of a employee, an increased role in decision-making, a enjoyable job duty, a new training opportunities, and a flexible work schedule to provide a balance between a personal life and a work schedule. The effects of a reward program will increase productivity and decrease turnover. High turnover of employees is a serious issue for companies. If qualified employees receive non-monetary rewards, this will decrease employee turnover. If an employee thinks he or she is contributing to the company’s mission, this will maintain an employee. Creating a positive, motivating work environment will also maintain an employee. Newcomb (1999) stated, “Losing a valuable employee is often the result of lack of a reward, recognition for good performance, and the lack of opportunities for career advancement.” Giles (2004) stated, “In the current tight labor market, employee loyalty, now, more than ever, is becoming an outmoded concept.” According to Spitzer (1998), it is a well-accepted law of behavioral psychology that if you want someone to repeat a behavior you should recognize the positive behavior immediately.

Monetary rewards that would be a direct cost for the company would be in the following ways: a cash bonus, prepaid parking, stock options based on performance, a gift certificate, and an education reimbursement. According to Spitzer