The ability to motivate people in the work place is a very important aspect of any organization. Motivating employees increases overall productivity which is very beneficial for the company. The article under review discusses how employees should be motivated through non-monetary means. This paper provides a summary of the article and discusses its relevance and impact on human resource. .
Summary.
The article written by Martin Dewhurst and his colleagues addresses the fact that most companies are cutting back on financial incentives. The reason for the cut backs is that the current economic conditions don't permit too much spending. The article points out that the financial incentives actually provide short-term motivation to employees. As a result, organizations continually spend a lot of money to ensure that their employees feel appreciated. However, studies on employee motivation indicate that non-financial motivators are more effective because they are the long-term solutions that produce the desired results. According to the article, many employees feel appreciated by their employers when they are praised when they perform well, when they get attention from employers even through a one on one conversation, or when they are given leadership opportunities. In fact, respondents to a survey conducted by the authors indicate that the three strategies mentioned above are more effective compared to giving bonuses, pay, increases, or providing stock options. .
However, more companies still rely on giving financial incentives because it is much easier to implement compared to non-financial incentives. Implementing non-financial incentives is quite difficult to implement because it requires a complete overhaul of an organization's work environment. On the other hand, there are pressures emanating from the unstable nature of the economy which are forcing organizations to withdraw from providing financial incentives to their employees.
