More than just money: A literature review of non-financial rewards

Pages: 171-176
Sumangali Radhakrishnan (Department of Psychology, Jesus and Mary College, University of Delhi, Delhi)

Motivating employees is one of the greatest issues concerning employers today. To succeed in today’s globalised world, organisations require a competitive edge that can be provided only by a highly motivated workforce. Traditionally, managers have relied on the use of financial rewards to attract, motivate, and retain employees. However, in the past few years, attention has shifted to the use of non-financial rewards to engage employees and maximise organisational outcomes. This paper reviews writings that address non-financial rewards, its theoretical underpinnings and its relevance to the organisational outcomes. The review also summarises the different types of non-financial rewards under four categories, namely, learning and professional development opportunities, employee involvement programmes, rewards and recognition, and work-life balance aids. Implications for practitioners have been discussed.