Difference between Monetary and Non-monetary Incentives

Difference between Monetary and Non-monetary Incentives

Monetary Incentives

1. Monetary incentives are in form of money or otherwise measurable in terms of money.

These incentives are tangible.

2. These incentives help people to satisfy their lower-level needs; especially basic needs.

3. These incentives depend on:

Demands of workers

Contracts of service

Payment made by other enterprises, for similar work.

4. These incentives appeal most to the so-called ‘lower-level people’ of society.

5. Persons with a money minded approach, prefer such incentives.

6. These incentives are more attractive and influential.

Nonmonetary Incentives

1. Non-monetary incentives are offered / promised in terms-other than money.

2. These incentives. by and large, are intangible.

3. These incentives help people to satisfy their higher level needs; especially ego and self realist ion needs.

4. These incentives depend on:

Aspirations of employees

Attitude of management towards providing such incentives,

5. These incentives appeal, specially, to Higher-level people’ of society.

6. People who are not much money minded; and aspire more for ego and self realization needs prefer such incentives.