Nonmonetary Rewards

Words: 506
Pages: 2
Subject: Essays

Nonmonetary Rewards
It’s no secret that compensation and benefits have a significant impact on employee motivation. When employees are well compensated and view their organization’s pay structure as equitable, they feel more motivated to fulfill their job duties and contribute to organizational success. Many motivational theories can help to explain the various facets that impact employee motivation. Maslow’s hierarchy of needs, for example, implies that organizations should first meet an employee’s basic needs of job security and recognition for a job well done before implementing elaborate rewards packages. When employees feel as if their basic needs are not being met, they may be unable or unwilling to meet employer expectations.

By taking into account motivational models such as Maslow’s, Adam’s Equity Theory, Expectancy Theory, and others described in this week’s Learning Resources, HR professionals can better choose the monetary and nonmonetary incentives that will best motivate their employees. If HR professionals can align these rewards with specific work-related tasks and goals, they may encourage employees to increase productivity and engage in goal-driven tasks.

In this Discussion, you consider how monetary and nonmonetary rewards can be used to motivate employees towards achieving organizational goals. To begin this Discussion, review the following:

Chapter 8, “Pay-for-Performance: The Evidence,” in your course text (focus on the section entitled, “Does Compensation Motivate Behavior?”)
Exhibit 9.4 on motivation theories in your text
Learning Resources
“Building a Better Long-Term Incentive Mix”
“Employee Perceptions and the Motivation of Nonmonetary Incentives”
Explore how specific types of monetary and nonmonetary rewards can help to motivate employee behaviors. Then, consider the following scenario:


Sparkle, Inc. is a company that manufactures and distributes organic soaps and cleaning products. In the past few months, the company has enjoyed moderate success in the market, but executives and stakeholders believe that there is room to grow. The senior management team has identified key areas for improvement, including productivity, cost, efficiency, and customer satisfaction.

The senior management team wishes to encourage employee behaviors that will increase output, lower costs per hour of work, minimize chemical waste, and decrease the number of monthly customer complaints. They have asked Sparkle, Inc.’s HR department to identify and explain several types of monetary and nonmonetary rewards that the company could use to incentivize positive employee behaviors.

Assess how specific types of rewards can motivate certain employee behaviors.
Select and explain two specific types of monetary and nonmonetary rewards that Sparkle, Inc. might incorporate into its total rewards system in an effort to motivate desirable employee behaviors. Provide a rationale for your selections of rewards.
Use at least one motivation theory described in Exhibit 9.4 in the course text that explains how the rewards you selected would satisfy employee needs and encourage desired behaviors.
Analyze factors that influence the implementation of motivational rewards
What positive and negative factors should Sparkle, Inc. consider when implementing an incentive plan with the motivational rewards you suggested?
What strategies should HR initiate to mitigate the negatives and enhance the positives of a reward-based incentive policy?