Non-Monetary Reward and Recognition and Team-Based Incentives
A performance-based non-monetary reward system requires planning and a well thought out infrastructure in order to succeed. Thus supervisors and HR administrators must work together to develop a set of criteria for implementing a rewards-based system that is based on several factors other than financial incentives. A non-monetary rewards-based system has to take into consideration several factors that a monetary rewards system does not. Of primary importance among these factors is employee motivation. Time and time again studies suggest that employees that are motivated are those that are regularly acknowledged on the job for contributions they make to the organization. Thus this performance-based reward and recognition system will focus on acknowledging employee accomplishments at several different levels.
A performance-based system has the potential to improve overall employee effectiveness and productivity when utilized correctly. Measurement of employee effectiveness must rely on "evaluation criteria that demonstrates attainment of organizational and individual objectives" during the course of the year (Donahue, Ingraham & Selden, 2000). Thus at the start of each year employees should be required to meet with their immediate supervisor and develop several short-term, mid term and long-term goals related to individual and organizational performance objectives. Their performance must subsequently be monitored throughout the year to determine what level of achievement an individual employee has made with regard to their objectives.
Those employees that are making significant gains will be rewarded accordingly. Thus employee goal establishment provides a framework for evaluating and criteria for establishing which employees are performing average and at above average levels.
A well developed system will be equated with exceptional performance. Fundamental to the success of a non-monetary system is effective management to organizational performance, and the ability to retain human skills and talent (Donahue, Ingraham & Selden, 2000). This system will measure specific attainment of goals in order to determine exceptional performance.
Effective employee motivation is the ability to encourage employees to perform effectively while supporting the organization's goals, and rests on the utilization of solid non-monetary rewards and incentives, including an effective performance appraisal system and mechanisms "that facilitate employee feedback" (Donahue, Ingraham & Selden, 2000: 381). The performance appraisal system recommended above will ensure that effective feedback is provided employees during the course of the year. Effective feedback is in and of itself an efficient motivator and form of non-monetary reward.
Studies suggest that employees that receive feedback regularly are more likely to remain on the job and report higher job satisfaction than employees who are not evaluated on a consistent basis (Donahue, Ingraham & Selden, 2000). Thus consistent feedback is an essential element of this non-monetary rewards and recognition system.
Employees will also be encouraged to develop a minimum of two team oriented goals during the course of the year which will be subject to the reward and recognition program. Team goals will be evaluated based on inter-group collaboration and concerted efforts on the part of all team members to facilitate organizational productivity and encourage success of their team members. Each employee will be assigned to at minimum of one collaborative team, and have the opportunity to provide feedback on other team member's performance during the annual performance review process. The team that accomplishes the highest level of achievement during the year may be recognized with a commemorative plaque.
Non-monetary motivators that have proven to have a positive impact on employee performance in the past include: job flexibility, alternative scheduling, performance recognition programs, employee of the month programs, commendation plaques and other rewards, additional vacation days (Donahue, Ingraham & Selden, 2000; Madhok & Tallman, 1998). A firm that does not integrate a variety of rewards systems when integrating non-monetary rewards risks lost of valuable employees that feel underappreciated and unrecognized (Pennings, Lee & Van Witteloostujin, 1998).
Thus this reward and recognition program will integrate a variety of methods for improving performance. Employees will be afforded the opportunity to be nominated by peers and/or a supervisor for employee of the month. Employees selected will receive a commemorative plaque and be afforded additional parking privileges during the year. In addition, flexible scheduling will be available for employees that achieve their individual objectives throughout the course of the year. For employee that provide exceptional contributions to the organization that go above and beyond the typical course of duty, additional vacation days may be allotted as a method of reward and recognition.
Firms need to devote their time to developing relationships among individual employees and learn...
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