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There are many ways of motivating employees in different organizations that depends on the capability of these organizations. They vary from in office excellence awards, a parking space for having done a good work at the organization, and in some other cases, day or two days off. However, according to various researches, most of employees from different organizations prefer monetary motivation to many other types of motivation.
Motivating employees using monetary value has some advantages, which include effectiveness, broad motivation for employees, far-reaching effects, and tips. According to a research conducted by the American Compensation Association, more than eighty percent of the companies in America, which use financial incentives to compensate their employees, record the highest productivity. These companies are further able to meet their financial obligations within the stipulated time.
The other advantage, which is broad, is option. Research shows that using money in the compensation of employees enables a company to have broad options in terms of the way they use that money. However, this may range from commissions to bonuses, gift certificates, and other cash rewards. This clearly shows that money can be utilized in various ways so as to have employees strive for bigger and better goals.
The far-reaching effect is the other advantage, which shows that money appeals to various demographics and can motivate the lowest level of employee in an organization. The less an employee makes in terms of his or her salary, the more he or she gets motivated by a few extra dollars. The other advantage is that money can be used to motivate such employees as hotel waiters and waitresses or even the bartenders. These are the types of motivation where the employer himself does not motivate the employees, but rather his clients do it in terms of tips (Buckingham, 2007).
However, although using monetary incentives has some strong advantages, it is crucial for employers to note that if this becomes a trend, then the employees will think that the money is valued more than any other thing in the organization. Therefore, the employees should come up with alternative ways of motivating its staff other than having financial incentives all the time.
Some of the disadvantages include laxity among employees, who may think that having financial incentives is an obvious aspect. Therefore, this may make them stop working since they feel that whether they work or not the incentive has to be there. The other crucial disadvantage is that it will be particularly tricky for an organization to use other methods of motivating their employees if they are only used to monetary motivation. Therefore, there is a need for employers to ensure that they use other forms of motivation than money.
Additionally, it is difficult to motivate low-level employees of an organization using money. Therefore, the organization may only motivate the high level employees, a phenomenon which will create a lot of enmity amongst them thus leading to poor levels of production. In addition, it is a great disadvantage to employees who may be expecting to have some financial motivation at a given time but will not get it because of some reasonable circumstances. They end up frustrated. The employees feel that it is their right to have financial motivation whenever they want. Finally, employees may develop a tendency to work only when they know they will be financially motivated. Otherwise, they do not work effectively (Thomas, 2009).
It is extremely essential for companies to ensure that they adapt different methods of motivating their employees other than applying monetary motivation. This will ensure that there is balance among the motivating factors, and employees will always be left surprised considering future company’s plans of personnel’s motivation. This anxiety should motivate employees to work hard so that they can be motivated.
However, there are two companies that have clearly made it through without involving monetary rewards and compensation among their employees. They are Barclays Bank and Apple companies. Based on the various motivational theories, these companies chose such motivations as hosting of employees dinner, where the employees will meet and mingle with their leaders. In this dinner, they are free to mingle like friends and not as workmates, and this gives them the morale to talk and share their life experiences freely. They are able to acquire useful experience and share their ideas with authorities during such dinners.
Other methods, which these companies have adopted, include paying school fees for those employees who are enthusiastic about going back to school and expound on their education. After finishing their sponsored careers successfully, they are redeployed by the same companies at higher ranks and levels. This is far much better than having financial rewards. In some institutions, the school fee is too high and not affordable to individuals. Employees interested in studying should utilize the opportunity because this is not just a onetime chance but a lifetime opportunity that can even change their lives.
Both companies also embrace the use of workshops, retreats, seminars, and even camping opportunities for their workers as a way of encouraging them. Additionally, they do not pay for anything while participating in these workshops or retreats because the companies have paid for them. All employees are required to attend these seminars, workshops retreats, or even camps and interact with one another.
Finally, the companies have embraced the opportunity of letting their staff interacts with employees from other organizations. They can interact and exchange ideas both at the personal and business levels (Buckingham, 2007).