Non-Monetary Incentives

Non-Monetary Incentives

Non-monetary incentives are those, which are offered/promised in terms other than money.

These are also, called, non-financial or non-pecuniary incentives.

Following are some examples of non-monetary incentives

(i) Promotions

Promotions, in a way, are both monetary and non-monetary incentives. Since, on promotion, a persons

get higher pay, it amounts to a monetary incentive; and since, the person enjoys a higher status in’ the organization, as a result of promotion, it is also a non-monetary incentive.

(ii) Delegation of authority

To a subordinates; enhances his status in the organization, helps satisfy his ego or esteem need.

(iii) Assignment of challenging work

To subordinates provides them’ opportunities for maximum development: and helps them reach up to the point of self-realization.

(iv) Participation in decision-making.

Helps in motivating subordinates and in the attainment of their social and ego needs — at least to some extent.

(v) Industrial safety.

Makes workers feel safe and comfortable at work; and satisfies their need for physical safety. In addition to industrial safety, safety of employees against terrorism also satisfies their need for physical, safety and makes them dedicated to the organization.