Employee Motivation: Financial vs Non-Financial Strategies Report

This report examines various methods of employee motivation, focusing on financial incentives, job rotation, and job enrichment. It begins by defining motivation and its importance in achieving goals, then explores the advantages and disadvantages of financial motivation, such as its impact on business revenue and employee needs, along with its inconsistencies and potential for customer interaction issues. The report then delves into job rotation and job enrichment as alternative motivational strategies, highlighting their benefits in terms of reducing boredom and providing new challenges. The conclusion emphasizes that there is no single best motivational model, and that the most effective approach depends on individual needs, referencing Maslow's hierarchy. The report concludes with references to relevant academic sources.

ACADEMIC AND
PROFESSIONAL SKILLS

Table of Contents
 Introduction
 Advantages of financial motivation
 Disadvantages of financial motivation
 Second method of motivation
 Third method of motivation
 Conclusion
 References

Introduction
Motivation is important in the life of humans as it
helps in attaining the success in life and also helps
in achieving desire goals and objectives.
Motivation is define as the combination of
thoughts, beliefs, values and desires of individual.
The motivated person would always take correct
decision in life is will put all its affords to fulfill
their dreams. It is important as it helps in bring
something unique and support in improving the
living standards and enhance the personal growth.
Moreover it provides direction and changes the
way of thinking, emotions and behavior.

Continue
 The reason behind why employees become demotivated
and are not able to perform better is due to lack of
appreciation they get for the efforts which they are putting.
The too much work pressure make them demotivated and
disappointed as they would able to get time for themselves.
Sometime the lack of clarity about the task or work make
them disappointed and demotivated as they are not able to
perform the task according to the expectation of the top
management. Furthermore the miscommunication also lead
to demotivation as they have performed the work in wrong
manner due to which they have to face problem and
difficulties. The benefits of improve in motivation level are it
helps in making the employees more efficient and efficient
which helps in providing high productivity level to the
company.

Why do employees get
demotivated
 Less salary
 Disrespect by senior executives
 Partial behavior within workplace
 Gossips and unnecessary comments
Benefits of increased motivation
 Increased performance of employees as
well as organisation
 Enhanced employee retention
 Increase in success of company

Financial motivation
 The financial motivation helps the companies by
increase its business revenue as employees would be
able to perform more effectively and efficiently in order
to accomplish the business goals and objectives.
 It helps in surging positive culture within the business
environment as employees will be able to work more
efficiently in order to receive the achievements and also
help them by providing better recruiting opportunities
 It helps employees in fulfilling their all personal need as
with the help of financial motivation they would be able
to satisfy their needs and wants. In this current scenario
where the expenses are increasing so people want more
in order to fulfill their needs and desires.

Disadvantages of financial
motivation
 The disadvantage of financial motivation is
inconsistency that is such type of rewards take
place in few situations that is they are not
permanent in nature.
 Employees didn’t receive extra monetary
benefits they feel demotivated and would be
able to perform to their full potential.
 Exhaust can prompt issues like low confidence
and lower efficiency every hour spent at work.
The customer interaction is effective that is
execution based motivating forces can affect
clients.

Second method of motivation:
Job Rotation
Definition: Job rotation involves an employee who has a lot of variety
in their daily work. It can persuade employees by taking them out of
work. There are two types of employment conversion. In the primary
pivotal role, the manufacturer has a number of industry-specific
occupational responsibilities.
Examples:
1. The Slumber Yard
2. Heineken Technology Program
3. Job rotation in factories
4. Edelman
Job rotation is better than financial motivation because Job rotation
ensures a change of scenery with new responsibilities that challenge
the employee to learn and adapt. This is a great way to reduce
boredom, motivate employees, and increase their personal agility.

Third method of motivation: Job
Enrichment
Definition: Job enrichment like job rotation, job enrichment
involves involves updating manufacturers' activities by providing
them with a wider range of mistakes to complete during the
workday.
Examples:
1. Customer Service
2. Experienced employees
The best way to improve one's performance is to reward one
who has a unique product. The assignment they receive should
be complete, with a unique beginning and end. As a result, it will
be ready. This meets the feeling of being networked, whether it
be, or in particular the opportunity, that it is the workplace. This
is the reason, it is better than financial motivation.

Conclusion
Based on above analyses, it can be concluded that;
there’s no fit model of motivation available or there’s
no universal way to motivate employees. Motivating
an employee depends on hierarchal theory of needs
given by Maslow. As, employees get motivated when
they get satisfaction from fulfillment of their needs.
Hence, no theory is better from each other but
outcomes from each theory can be better or worst. In
future, it is estimated that all people will become
economically strong and financial motivation will be
indirect goal. Employees will be more focused on
promotion and challenging job; as this will finally give
them return in the form of power and money.

REFERENCES
 Peters, R.S., 2015. The concept of motivation.
Routledge.
 Touré-Tillery, M. and Fishbach, A., 2011. The
course of motivation. Journal of Consumer
Psychology. 21(4). pp.414-423.
 Nolen, S.B., Horn, I.S. and Ward, C.J., 2015.
Situating motivation. Educational
Psychologist. 50(3). pp.234-247.
 Heckhausen, J. and Heckhausen, H., 2018.
Motivation and action: Introduction and overview.
In Motivation and action (pp. 1-14). Springer,
Cham.