10 3 NON FINANCIAL REWARDS Nonfinancial motivation Fringe

10. 3 NON FINANCIAL REWARDS Non-financial motivation (Fringe benefits) 1

Think • If a job did not pay you money and you did not need money, how would you like them to reward you for your hard work? • Talk with your group and listen to everyone’s opinion then write down your answers. • Discuss which level of Maslow’s hierarchy of needs your answers would satisfy and why? 2

Non-financial rewards • Also known as fringe benefits • It is the extra reward on top of salary/wage and act as a non-financial motivation • Why? To attract and retain employees • Act as incentives for an employee to join a company, stay with the company and work hard for the company. • Should be designed to meet the needs of the employees! • How? 3

Benefits and costs Pros: • Increases motivation as employees feel appreciated and work harder/more productive • Increases employee loyalty retaining staff for longer • Retain their ‘experience and knowledge’ • Avoid recruitment costs Cons: • Cost of providing fringe benefit • May not provide motivation if fringe benefit is seen to be useless 4

Importance • The more competitive the industry, the better the fringe benefits should be. This is to attract talent and most of all keep talent. 5

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• Summary question 1 -3 • Short answer questions 9 -10 on page 158 sent to my email • Research Hertzberg’s two factor theory to gain an understanding for what he believes is true motivation Homework 7