Non monetary benefits at workplace

Non-monetary rewards should form one important part of a complete employee recognition
program along with monetary rewards. Each motivates employees differently. Non-monetary
rewards can be used for either individual or team rewards.

Research shows that employees some employees are primarily motivated by financial rewards,
and will dramatically improve their performance to achieve such rewards. On the other hand,
some other employees may see motivating others with money as vulgar, and are disincented by
such offers. This second group of employees is more likely to be motivated to improve their
performance through the use of nonmonetary rewards such as being thanked publicly at a
departmental function, having lunch with the head of the organization, or receiving an extra
day off. The desired outcome of rewards and recognition programs is to improve performance.
Non-monetary recognition can be very motivating, helping to build feelings of confidence and
satisfaction

With the growing decline of economy, more employers are using non-monetary incentives to
motivate employees, yielding positive results. While everyone needs money for the expenses
of everyday life, most current and long-standing employees rarely view cash as good
motivation. If an employer pays fairly, employees desire appreciation and other non monetary
rewards in exchange for a job well done. This trend is becoming more popular as businesses
explore ways to motivate employees without breaking the budget. The benefits are far greater
for business to offer what employees desire: opportunity to grow, flexible hours, recognition,
opportunity to contribute, and autonomy, than to compensate employees with cash

Ways to Reward Employees (Without Spending a Dime)

1: Education

Very few companies invest in their employees. Part of the problem is that employee benefits
tend to be available to all employees, regardless of the department. So it is considered better
not to offer education benefits to developers than to have to offer them to all workers across
the board. Unfortunately, developers don’t quite see it that way. It is a poorly hidden fact in the
industry that developers are expected to learn new skills at their own expense and on their own
time, not while on the clock. No one would run a factory and expect the plant workers to learn
the safety rules at home

2. Flex those hours. If there's one free reward that rises above the rest, it's flexible work
schedules. Nearly every expert we contacted suggested flex time as a perk that offers the most
gain with the least pain.
3. Make work fun. “During a business coaching engagement, I found employee morale to
be way down,” said Terri Levine, president of The Coaching Institute. “We created a weekly
event to boost morale. One week we asked everyone to bring in a baby picture, post it on a
wall, then pick which person matched each picture. Everyone was having fun and socializing
while productivity went from 58 percent to 72 percent — all in the same week.”

4. Publicize their successes. “We like to publicly recognize employees so the whole
company can share in their accomplishments,” noted Scott Ragusa, president of contract
businesses for staffing firm The Winter, Wyman Companies. “Each week, nominations for our
quarterly 'Clutch' award are shared with the whole company

5. Offer a swap. Giving your best employees a chance to pick their own projects or trade
tasks with a colleague empowers and rewards them at the same time
Articles

6 degrees of motivation

Abstract

Today's workers do have certain shared experiences, attitudes and beliefs. But they also bring
to the table a complex constellation of psychological motivators. For managers and
organizations, understanding the profile of staff members can help in designing effective
rewards and systems to attract and retain the best talent. Six idealized profiles are discussed: 1.
independent thinkers or entrepreneurs, 2. lifestylers, 3. personal developers, 4. careerists, 5.
authenticity seekers, and 6. collegiality seekers.

Currents in compensation and benefits

Abstract

Some quality experts believe that money does not motivate and that people do not really work
for money. Instead, they argue that intrinsic motivation is superordinate to money. Sibson &
Co., however, asserts that although in some cases the quality experts may be right, their overall
premise is naive and potentially dangerous for businesses to accept. Pay is one of many viable
tools for shaping business performance. Individual and broad-based incentive pay and the
attendant performance systems are proven and significant change agents for US businesses.
However, a study of 100 major US manufacturers and service firms involved in total quality
management (TQM) programs found that recognizing employees' contributions with noncash
awards is an important factor in making such programs successful. Companies concerned about
losing technical talent report that "dual-career ladders" are helping retain such employees. Of
107 large companies surveyed by Hewitt Associates, 61% have used dual-career ladders for
more than 5 years. However, dual-career ladders have created only moderate changes to
companies' existing compensation systems

Rewards of work

While competitive, performance-linked compensation is necessary to keep employees focused

and interested, the fact is that for most employees, the value proposition includes a great deal
more than just money. Employees today value rewards that are tangible and intangible. They
derive value from their affiliation with or simply belong to their organization; their opportunity
to pursue a career; the satisfaction of making an impact through meaningful work that is also
recognized and benefit programs that help make them feel financially secure. Understanding
what employees want from employment is key to developing and sustaining a competitive
advantage. Results of a survey of the Canadian workforce are presented. The findings are
grouped under 5 types of rewards: 1. direct financial, 2. affiliation, 3. career opportunity, 4.
indirect financial, and 5. work content. Research indicates that the employee value proposition
is optimized when these elements are balanced.

Our object was to collect first-hand information on employees' preferences for rewards; their
understanding and acceptance of pay practices and the importance of both financial and non-
financial rewards. Their opinions would determine the drivers of both high performance and
retention.

Working class

All work and no play doesn't work all the time. Employees at Sonic Drive-In, the '50s-fashioned
fast food chain headquartered in Oklahoma City, are rewarded for serving up burgers and onion
rings and, more importantly, for their loyalty to the company. Good customer service,
cleanliness and knowledge of corporate guidelines are judged throughout the year at each of
Sonic's 2,300 restaurants. Its official employee retention program, called "Showdown for Sonic
Gold," features "The Dr Pepper Games," an Olympic-style competition with categories such as
Carhop for the best food delivery, Fountain for the tastiest drink preparation, Switchboard for
the snazziest service delivery and Dresser, Grill and Swamp for the best food preparation

A fun work environment, opportunities to learn new skills and a motivated manager will keep
employees on a company's payroll longer. Employees at Sonic Drive-In, the 1950s-fashioned
fast food chain headquartered in Oklahoma City, are rewarded for serving up burgers and onion
rings and, more importantly, for their loyalty to the company. Good customer service,
cleanliness and knowledge of corporate guidelines are judged throughout the year at each of
Sonic's 2,300 restaurants. Fred Martels, president of People Solutions Strategies, a performance
improvement company located in Chesterfield, MO, said that what drives people out of the
work force faster than anything is lack of respect. Second is unfair treatment, he said

MOTIVATION: Plastic fantastic?

Abstract
According to Datamonitor's Prepaid 08 report, the fastest-growing area in payment products is
pre-paid cards, which are expected to expand at a rate of 22.6% a year between 2007 and 2012.
This trend is evident in the workplace, too, with an increasing number of pre-paid cards made
available to employees, either to replace paper vouchers in reward and recognition schemes, to
manage expenses, or to pay staff who do not have a bank account. There are several types of
pre-paid card. Whether closed or open loop, the cards are all pre-paid debit cards, so
employees cannot exceed the amount loaded onto them.

It is the convenience aspect that many in the industry believe will make pre-paid cards a big
growth area, particularly in the current economic climate.

A growing body of research indicates pre-paid cards can have a tangible impact on employee
motivation. But not everyone is convinced of the business case for pre-paid cards.

MOTIVATION: Cache of incentive ideas?

Mike Davies, director of performance improvement at communication and motivation firm BI,
explains: "If you were to ask employees what they want, their stated preference would always
be cash." However, just because employees say they want extra money, this does not mean it
will always be the most motivational option. "Cash is a hygiene factor, not a motivator. It is
something that you need, but it is the kind of thing that stops you leaving your job, rather than
making you more motivated," adds Davies
MOTIVATION: Building unity

Effective reward and recognition strategies can help to ensure a short-term employee is happy
to return to work for a particular company for future projects.

A significant challenge for some employers can be how to give those employees on short-term
contracts the impetus to work effectively and to schedule. Temporary and contract workers are
a key part of the labour market. As the economy emerges from recession, more projects
require input from skilled short-term workers. Effective reward and recognition strategies can
help to ensure a short-term employee is happy to return to work for a particular company for
future projects. Offering good employee incentives to this section of a workforce can also help
to maintaining an organisation's reputation. One option for employers is to provide discounted
retail vouchers. When implementing a reward strategy for contracted workers, employers must
tread carefully, because failing to align it with the needs and desires of both temporary and
permanent staff can cause problems.

Loyalty marketing: Creating incentives needed to motivate agents

To develop the program, start by identifying the key objectives. Refer to the quantifiable goals
stated in the overall marketing plan, such as reaching a certain dollar amount in premiums from
one or several products over a specified period of time.
Don't limit your incentive program to new products and neglect popular existing products that
would give agents more opportunities to earn rewards. Also, reach out to both existing and
prospective agents when launching an incentive program.

For an agent to strive toward a certain production goal, he or she needs to become emotionally
vested in the reward. But one reward won't satisfy all types of agents.

For example, a four-day golf trip to a resort 1,000 miles away will not motivate an agent who
doesn't golf or who doesn't want to be away from a spouse and young children. You'll get far
better results by offering several destinations, including at least one that's reachable by car. In
addition, some agents may not be turned on by any trip and would prefer a tangible gift

An employee loyalty marketing program should be part of an insurer's overall marketing

strategy and embraced by the top executives. The insurer should reach out to both existing and
prospective agents when launching an incentive program. For an agent to strive toward a
certain production goal, he or she needs to become emotionally vested in the reward. But one
reward will not satisfy all types of agents. Instead of offering super rewards for top producers,
the insurer should offer additional rewards - such as a weekend getaway or tickets to a sporting
event - for agents who achieve more moderate production levels, so they can set their own
realistic goals. Another suggestion is to provide a reward to agents who write business for the
first time with your company. Each reward should create a connection with your company in
the eyes of the agent
When trying to motivate staff to achieve particular goals employers can use a number of
incentives, ranging from bottles of wine and weekends away to cold hard cash. But it's tricky to
decide whether a cash incentive scheme or non-cash benefits are most appropriate, especially
when there are compelling arguments for both. One problem with cash is that it often goes into
employees' pay packets at the end of the month and therefore may not be associated with
what they have achieved. One advantage of awarding money, however, is that it is possible for
employees to spend the money on whatever they want, rather than being given something
they don't value. If a company does opt for cash, it should be warned that the value is likely to
be perceived as less than a non-cash reward worth the same amount. Whether employers
choose cash or non-cash incentives, it is often not the value of the reward, but the recognition
that matters most.

MOTIVATION: Building unity

Effective reward and recognition strategies can help to ensure a short-term employee is happy
to return to work for a particular company for future projects.

A significant challenge for some employers can be how to give those employees on short-term
contracts the impetus to work effectively and to schedule. Temporary and contract workers are
a key part of the labour market. As the economy emerges from recession, more projects
require input from skilled short-term workers. Effective reward and recognition strategies can
help to ensure a short-term employee is happy to return to work for a particular company for
future projects. Offering good employee incentives to this section of a workforce can also help
to maintaining an organisation's reputation. One option for employers is to provide discounted
retail vouchers. When implementing a reward strategy for contracted workers, employers must
tread carefully, because failing to align it with the needs and desires of both temporary and
permanent staff can cause problems.

Tricking a balance

Susan Radojevic, president of Peregrine Incentives Inc. in Toronto, says cash is an effective
reward from a human nature perspective. But she doesn't believe it's the most effective tool to
motivate. "The average person is motivated by money," she says, "but I don't agree cash as an
incentive will motivate quality performance, quality of delivery of service or anything else
pertaining to the bottom-line functioning of a company. It also doesn't offer the proper
recognition for an individual who has gone beyond the call of duty."

Keeping a reward structure for sales teams in a tight economy makes sense, says Radojevic, but
she stresses not to neglect support staff. "You need to identify the people giving support and
reward them too," she says. "And it needs to come from the top. Companies don't do this
because they are vicious. It's just something that's not in the forefront of their minds."

When companies pinch pennies, it's a normal reaction to have programs for fewer employees,
says Radojevic, but this, too, can hurt productivity in the long run. "When times are tough,
when a company's doing poorly, they always cut the marketing budget," she says. "But how are
you going to get the word out, bring business in and increase your revenue by cutting rewards
to your employees?

Determining Compensation for Telephone Personnel

The one-time contest is not a strong method of telemarketing employee compensation because
it only boosts productivity temporarily. Salary plus commission works better than straight
commission for phone personnel, but the 2 must be kept in balance; no more than 10% of
annual income should be in commission. Giving theater tickets or dinners for performance also
falls short as a continuing motivational tool. Some successful compensation programs being
initiated are: 1. salary plus bonus, 2. salary plus extended benefits, 3. salary plus time off, 4.
salary plus group bonus, 5. salary plus special incentives, 6. flex time, and 7. other
compensations, including trips and investment opportunities. Managers must also be
motivated. Any compensation package should be flexible and provide for the specialness of
telephone sales professionals

Restoring Balance to Sales Compensation

If a company wants its salespeople to focus their efforts on products or services with longer
sales cycles or higher margins, it will have to reward those salespeople accordingly. By tying
sales compensation systems to a quarterly, yearly, or long-range sales and marketing plan, a
company can easily get its salespeople to carry out the firm's overall objectives because it has
created a program that balances the interests of the company and the sales force. As long as
they are well-planned and well-structured, such programs are not any more difficult to
administer than volume-based plans. A compensation plan that rewards for total dollars
produced, new account dollars delivered, and new product dollars sold should match up well
with the company's sales plan. Programs that pay commissions calculated against a base salary
are often the best choice. Such plans allow the company to leverage sales growth against sales
expenses while they minimize the wide swings in salespeoples' earnings when the economy
surges or sags too much.
Corporate Strategy and Total Reward -- Where's the Relationship?

The human resource content, particularly reward, and the implementation consequences of
business decisions are insufficiently taken into account at corporate planning stages.
Remuneration is still, too often, more a tactical response to pressures than a matter of
forethought and a flexible but consistent practice. Business trends have become increasingly
international in context and demand similar attitudes toward remuneration. The most
significant change to remuneration has been the move toward management incentives and the
effort to link pay and performance. At the same time, the government has enabled share option
schemes to become tax-effective as a long-term method of reward. The primary tools available
to the remuneration analyst are the classic elements of the remuneration process and of the
total reward package. The way they are used and the levels and mix of remuneration elements
determine how the organization can match its reward approach to its business objectives.