Non-Financial Motivators are Inevitable for Organizations

In today’s dynamic and volatile work environment, it is challenging to keep your employees motivated and satisfied with their jobs, tasks and the organization. Motivation is directly linked with employee productivity and indirectly linked with employee retention. Motivated employees do their best, create a climate that is conductive to performance and help the organization to achieve its targets. While a stressed out and grumpy person with a frown on his face cannot perform well on work and creates an unhealthy environment; eventually leaves the organization.

“The heart of motivation is to give people what they really want most from work". -- Twyla Dell

Employee motivation has always been the most central part of employers and management strategies. A McKinsey Quarterly study found that seventy percent of organizations say that they use or plan on using a motivation program (Dewhurst, Guthridge, and Mohr). Due to recent economic conditions, organizations and employees are focusing on financial motivators in terms of salary increment, bonus and commission. “More than half the employees surveyed by the Society for Human Resources Management in 2009 said that benefits and compensation are important ("2009 Employee Job Satisfaction")”. However, to me money is not everything. If employers are offering financial rewards only and in return they are expecting high productivity and low turnover rate, their strategies are not long term.

There are many other factors that play an important role with money in keeping an employee motivated. I believe employer and management need to get to “KNOW” their employees, their job performances, their issues, their needs and their expectations and even their hobbies and interests as well. Dr. Gerald Graham, a professor at Wichita State University, found in one of his studies that the “top five incentives that employees mention are free. These are (1) ‘a personal thank-you’ from the boss, (2) a ‘written thank-you’ from the same, and (3) ‘public praise’” (Baldoni).

Here are some non-financial motivators that are inevitable for your employees’ motivation and your organization’s success.

1. Interesting Job Responsibilities - Job responsibilities define what an employee does every day at his/her job. This is one of the major motivational factors. A study, published in 1999 by Kenneth Kovach of George Mason University, compared associates' ranking of what they wanted from their jobs. As per the results of this study interesting work was on the top of the list. I have seen so many people working happily on low salary just because of the inspiring and challenging nature of their job. If employees are working in their favorite technologies and getting tasks as per their talent, skills and abilities they will put their 100% efforts to accomplish it.

2. Unbiased Performance Review - Measure your team members’ performance systematically without favoritism. Individual goals and targets must be realistically defined and discussed with team at the start of the year. Performance factors e.g. Quality of work, target achievement, productivity, dedication, innovation, discipline, dependency of members etc. must be considered. At the end of performance evaluation all successes and failures of team member must be discussed with him/her to make a clear picture of his performance in his/her mind. Also consider previous years’ performances while evaluating current year’s performance.

3. Recognition and Appreciation - Recognize the efforts of your team and use positive adjectives to highlight their good work to keep them motivated and productive. According to Andrew (2004), commitment of all employees is based on rewards and recognition. Deeprose (1994) argued that the motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations.

4. Working Environment - Employees spend 9-10 hours in their offices daily. A healthy, disciplined and harassment free environment keeps them motivated. Spacious cabins, comfortable furniture, open and airy halls with proper lighting do make a difference as well. I can share an example of one of the local companies which is enjoying low turnover rate in IT industry despite of paying low salaries. Certainly the reason is a healthy, productive and harassment free environment with a professional ambiance.

5. Nature of Relationship with your Employees - If you develop a stronger relationship with your employees, they will be more motivated to work for your organization as a result. Try to get to know your team members, their children, wedding anniversaries, hobbies and interests, favorite restaurants and food. Informal gatherings like trips, dinners, sports galas and team building activities must be arranged. Celebrate their birthdays as well. Listen to and act upon employees' ideas and suggestions. In the words of Roy E. Moody, a motivational speaker; “The greatest motivational act one person can do for another is to LISTEN”.

6. Learning Opportunities - Provide employees with ample opportunities to learn new and advanced skills. Take a genuine interest in your employees’ career paths and believe me, it does wonders for an employee’s positive motivation. Mentoring, coaching, suggesting additional training or coursework – all of these can be helpful to employees, and of course highly valued.

Sustainability of the motivation is very important and to sustain its high level organizations are required to establish reliable and comprehensive systems, policies and processes in the workplace. Long-term motivation of your employees will take you to the desired organizational outcomes such as high level of productivity, high sales and low turnover rate.