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The Effect of Non-financial Factors on Employee Motivation and Performance

Introduction

Employee motivation is a hotly debated and researched topic in the domains of organizational behavior and human resource management. However, mounting evidence shows that factors other than monetary compensation significantly impact employee engagement and output. This goes against the grain of what is often believed, that financial incentives like high wages are effective motivators. This research aims to examine the many non-monetary aspects that motivate workers and the impact these aspects have on job productivity.

The Working Conditions

An important non-financial factor that influences workers’ motivation is the working conditions within an organization. According to studies done by Dinh Van Thang and Nguyen Quoc Nghi (2022), the working conditions at the Otuksa Japan firm positively impact employee motivation. This encompasses several features, such as a welcoming and safe workplace, sufficient resources and equipment, and a positive company culture. Workers’ perceptions of having their psychological and physiological needs met by their employers are associated with higher levels of motivation and engagement in the workplace (Tumi et al., 2021).

Possibilities for Professional Advancement

Providing workers with opportunities for professional advancement and advancement of their careers is another important non-financial aspect that drives employees. Dinh Van Thang and Nguyen Quoc Nghi (2022) discovered that their professional advancement opportunities were the most important influence on employee motivation at the Otuksa Japan corporation. According to Muhammad Hasmi Abu Hassan Asaari et al.’s 2019 research, employees who perceive that their organization places a high priority on their professional growth and offers prospects for progress are more likely to be motivated and devoted to their jobs.

Affirmation of Admiration and Gratitude

Besides, showing staff that they are recognized and acknowledged for their consistent efforts and contributions is one of the most powerful ways to move on. The authors from a research team (2019) stress the importance of recognition just within the frame of the study on a government trade institution(Abu Hassan Asaari, Muhammad Hasmi). Workers tend to stay put as they feel they have continuous learning-led tasks or work harder, and they improve performance when they realize that management respects and values their efforts. Demoralization of employees may be eliminated through expressions of appreciation, for instance, words of praise, honorable prizes, or public appreciation. Such type of recognition is known as low-cost recognition, in which the theory of recognition method is practical.

Relationships in the Workplace

Employees’ motivations largely depend on the kind of personal ties that exist among the company’s members. The Otuksa Japan company’s analysis by Dinh Van Thang and Nguyen Quoc Nghi (2022) revealed that the work’s employee relationships contribute positively to the work’s employee engagement. Employees with excellent rapport with other employees, their managers, and supervisors tend to exhibit better performance as they feel respected, understood, and fulfilled. This is evident because the offices are intentionally created to attract these sentiments. The power of networking mentioned here can foster interpersonal ties, resulting in positive outcomes in cohesion, collaboration, and trust, leading to higher commitment and job satisfaction.

Non-outsourceable and Expandable Jobs Prospects

The level of employee motivation wage earners exhibit is likely to be maintained or even boosted with job enrichment and enlargement, provided by challenging, relevant, and diversified aspects of their work. According to “Libyan Business: employment and Diversification” by Tumi (2021), improving employment conditions and enhancing labor market efficiency is imperative. To ensure that workers will get involved in and like their jobs, the work task limitation may need to be expanded, the amount of an individual’s control increased, and development opportunities be provided otherwise. Adding a winning attitude to performance and job fulfillment will come about as an effect.

Opportunities for Professional Development and Training

Besides professional development, training and making every worker capable of performing added responsibilities are other factors contributing to increased motivation. The study by Tumi et al. (2021) focuses on the fact that the training largely contributes to employee mobilization. Employees will perceive that the organization is an important value addition to them, which will help develop passion among employees to utilize their newly acquired skills at work. This is the reality since these children are legally permitted to own them. It will assist employers in training their staff and developing their skill sets, which will help employees realize their responsibilities and become more confident in their work, which is a fundamental factor of productivity.

In sum, although a high wage is a frequently used factor to motivate workers, other things unrelated to money also influence the level of motivation and productivity of employees. A few essential non-financial factors have a great response regarding employee motivation. These represent work conditions, advancing career, recognition and feeling appreciated, working relationships with colleagues, job enrichment and expansion, and learning and professional development. Implementing these variables takes well-motivated and engaged employees and increases job performance results and even better success for the organization.

References

Dinh Van Thang, & Nguyen Quoc Nghi. (2022). The effect of work motivation on employee performance: the case at OTUKSA Japan company. World Journal of Advanced Research and Reviews, 13(1), 404–412. https://doi.org/10.30574/wjarr.2022.13.1.0047

Muhammad Hasmi Abu Hassan Asaari, Nasina Mat Desa, & Loganathan Subramaniam. (2019). Influence of Salary, Promotion, and Recognition toward Work Motivation among Government Trade Agency Employees. International Journal of Business and Management, 14(4), 48. https://doi.org/10.5539/ijbm.v14n4p48

Tumi, N. S., Hasan, A. N., & Khalid, J. (2021). Impact of Compensation, Job Enrichment and Enlargement, and Training on Employee Motivation. Business Perspectives and Research, 10(1), 97–114. https://doi.org/10.1177/2278533721995353

 

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