4c. Non-financial Incentives to Improve Performance

What are non-financial incentives?

Rewards or motivators not directly related to money

• They’re usually intangible and include methods that lead to recognition, praise, job satisfaction, and work-life balance

What are the types of non-financial incentives?

• Autonomy

• Job enrichment

• Job rotation

What is autonomy?

• Involves giving staff the authority and resources to make decisions and take action without first receiving management approval

• Increases staff sense of ownership and responsibility, leading to improved productivity

• Gives employees a sense of ownership and control over their work, which can lead to improved productivity, especially for skilled workers

What is job enrichment?

• Involves adding more challenging or meaningful tasks to a job

• Staff feel more motivated and engaged, leading to improved productivity

What is job rotation?

• Involves moving staff between different roles in the business

• Exposes staff to new challenges and experiences which can increase motivation, understanding and skill

What factors should be considered when determining an appropriate compensation package?

• The context of the business: Different roles require different pay structures (e.g., factory workers may receive wages, while creative teams may get salaries and bonuses)

• Balance of the compensation package: A mix of financial (e.g., salary, bonuses) and non-financial incentives (e.g., benefits, recognition) helps maximise employee productivity and retention.