Monday, 12 September 2011

Non Financial Benefits

Non financial rewards also known as a non cash reward for the employees are given to the employees in recognition of a high level of accomplishment or performance, which is not dependent on achievement of a pre-determined target . This is generally misconceived as a part of the salary of the employees.

Salary and wages are the financial benefits that the employers provide to their employees in return of the work they do. This acts as a guiding factor for the employees and motivates them to work.

Sometimes, the employers choose to provide incentives to their employees that are not in the form of direct pay. A very big reason behind choosing this mode of recognition is that, though monetary benefits have an impact on the performance of the employees but, this effect is only extrinsic. Non monetary benefits provide intrinsic motivation to the employees and raises their self esteem.




Non financial benefits can be of many types like, recognition, developmental opportunities, monthly rewards etc. Also, it can take the form of give away from the employers – retail or travel vouchers, use of recreational facilities, meals for individual and partner, theatre or cinema tickets etc.

This mode of payment costs very little in terms of money when compared to the long term impacts that it has on the recruitments, retention and the quality of the work by the employees.

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