Cash and non-cash incentives

Employee Motivation - Cash or Non-Cash Incentives
The employee is the back-bone of any organization, whether he or she is working at an associate level or at management level. An employee shall be treated well always to retain and motivate him so that he can set an example of an ideal employee for the other employees in the organization. There may be several motivational factors to retain and get the best performance results out of an employee, out of which the cash and non-cash incentives will provide recognition and are considered the most common motivating efforts by any good organization.
Advantages of cash Incentives
The cash awards to any employee who has performed well will always motivate him and make him perform much better the next time, as monetary value or numbers are always a factor that will encourage the employee to work more efficiently in any kind of environment either in a normal or pressurised situations, and he will never feel neglected or ignored by the organization he is working for. The companies usually award the good performers with the fixed cash award that is a one-time payment during any award and recognition ceremony organized by the organization. On the other hand the deserving employee can also be given a handsome amount in the form of a variable pay or bonus either at the completion of financial half-year or a year-end.
Advantages of Non Cash Incentives
Employees who are good performers or star employees working for an organization may also be awarded several non-cash incentives, which will also definitely motivate them to perform well. These non-cash incentives can be considered such as; awarding promotions, trophies, mementoes, certificates, memberships to some privilege clubs or gifts etc. And there are few other motivating factors that will also help the employees to be faithful and loyal to their organization, and these are considered as promotions or some leadership roles in the organization.
Conclusion:
However, any cash or non-cash incentives initiated and awarded by any organization will always be considered as a good motivating factor for any of their employee. It will definitely boost their morale and help them to be faithful to the organization and work well and perform in a much better way.

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