Question

Discuss why merely using monetary rewards to motivate your workforce may not always be a good idea.

Answer 1

Monetary incentives are not always a good idea. It has an importance but not always. Money is not only a concern for which employees work. There are many other things which is desired by the employees. For an example, praise, complement, rewards, awards, social recognition etc.

Money is not always a good idea because monetary benefits gives job satisfaction for few days only and later it is forgotten and if next time monetary benefits are not given then the employees gets de-motivated. For an example an employee’s salary is $10,000 and after monetary incentive he has fot $11000. Not this employee will always expect to get $11000. And in next month when the same employee will get only $10,000 then he will be de-motivated.

Many employees want to be praised. This makes them feel that they have contributed to the growth of the company and their work has been counted.

As per a research done by the HR professionals flexible working hour shift is biggest non-financial motivation for the employees. And these non financial rewards will work for years. For an example after a year the employee will think that in the last year same month I was employee of the month rather than those cash which has been spent by those employees.