Non Financial motivators

Financial incentives motivate employees for superior job. On the other hand, persons have multiplicity of needs that they want to convince while working in the organizations.

There are some people who try to put a strong emphasis on the socio-psychological needs that cannot be satisfied by money alone at higher level of managerial hierarchy. So, management provides non-financial incentives to motivate people in the organization in addition to financial incentives.

It can be concluded that the importance of non-financial incentive is to provide psychological and emotional satisfaction rather than financial satisfaction. For instance, receiving promotion in the organization delivers psychological satisfaction. The promotion forms a good source of psychological satisfaction as it offers better status, authority, more challenging job etc. The major non-financial incentives include status, promotion, responsibility, recognition, job security, etc.

There are certain limitations of financial motivators they are:

(i) Physiological needs are to be satisfied repeatedly till human being survives. These types of needs are not associated with money alone and comprises of hunger, thirst, sleep, shelter, sex, and other bodily needs. Thus, financial motivation cannot satisfy physiological needs of a person.

(ii) Self-actualization needs cannot be reached easily through financial motivators.

(iii) The social needs are satisfied by symbolic behaviour and through physic and psychic contact with others in the society and not by money. 

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