Non-Financial Rewards - Dissertation Example

Moreover, free pension entitlement or private medical care can also be considered as the non financial rewards. Research Question What is the impact of non-financial reward on employee satisfaction? Literature Review The non financial rewards are cost effective for the organizations. According to Armstrong (2010), non financial rewards focus on the reorganization, achievement, autonomy, influence, personal growth and responsibility needs of the employees (Armstrong, 2010, p. 47). There are two types of non financial rewards namely tangible non financial rewards and intangible non financial rewards.

Intangible non financial rewards are referred as the relational rewards. Work life balance, quality of work life fall in the intangible non financial rewards category. On the other hand the tangible non financial rewards are referred as the non cash rewards. These non cash rewards support several recognition programmes. Low valued matters or objects like flowers and chocolates are considered as the tangible non financial rewards. Several vouchers and substantial value offers like holiday package are also considered as the tangible non financial rewards. . This scheme helps an organization to increase performance outcomes.

It can be seen that several global organizations implemented this specific recognition schemes in order to increase their business efficiency. Generally larger organizations use this recognition schemes as it is both time and cost effective. These recognitions can come in both non tangible and tangible forms. According to Perkins and White (2010), an effective employee recognition programme should be prevalent, visible, spontaneous, personal and memorable (Perkins and White, 2011, p.72). The organizations implement these recognition schemes in order to achieve several organizational objectives.

It motivates the employees to provide effective work performance. It creates a positive organizational work environment. The organization can maintain their ethics and morale through these recognition schemes. Moreover, these recognition schemes encourage the employee loyalty and support several cultural changes. According to Lewis (2006), involvement policies, thank you prizes, communication strategies, imaginative job designs and effective performance appraisal are majorly considered as the non financial reward (Lewis, 2006, p.107). According to Armstrong (2007), achievement, influence, personal growth, recognition and responsibility are the key objectives of non financial rewards (Armstrong, 2007, p.69). Employee recognition programme is a key aspect in employee motivation process.

It is important for the management of the organization to link it properly and strategically to the organizational objectives and goals. It will help to increase the motivation of employees and business output of the organization.