Sample HR Management Paper on Non-monetary Rewards as a Major Employee Retention Factor

Non-monetary Rewards as a Major Employee Retention Factor

Employee retention refers to a company’s ability to maintain its personnel by creating a conducive work environment. Organizations use different strategies, including monetary and non-monetary rewards, to keep their workforce and increase morale and productivity. Non-monetary rewards, such as recognition and wellness programs, significantly contribute to employee retention in most organizations in different ways.

Recognition and career development are essential non-monetary rewards that increase employees’ motivation. The incentives enhance employee motivation by increasing their self-esteem and contribute to their personal and professional fulfillment (Ma et al., 2018). Morale also improves commitment and job performance in the workplace, boosting organizations’ employee retention abilities.

Non-monetary rewards facilitate career development, allowing companies to reduce their attrition rates. Training programs are among the most common non-monetary incentives in various companies. Organizations providing such opportunities have a greater chance of retaining employees than those that do not (Ma et al., 2018). Such initiatives allow employees to improve their skills and take on more responsibilities, allowing them to enhance their careers at a specific workplace.

Non-financial rewards, including wellness programs, promote a conducive workplace environment. Initiatives such as stress management, financial advice, and counseling programs promote employees’ wellbeing, enhancing their morale and productivity (Habib et al., 2017). They also signify companies’ goodwill towards their personnel. Thus, organizations applying such strategies improve their workplace environments and reduce their attrition rates.

Companies apply multiple strategies to retain their workforce and minimize attrition rates. Non-monetary rewards are among the primary most effective employee retention strategies. Incentives such as recognition, training initiatives, and wellness programs enhance the workplace environment and improve morale, increasing organizations’ employee retention abilities. Thus, companies using non-monetary rewards tend to have high personnel retention rates.

 

 

 

References

Habib, M. N., Khalil, U., Manzoor, H., & Jamal, W. (2017). Non-Monetary Rewards and Employee Engagement; A Study of Health Sector. Sarhad Journal of Management Sciences, 3(2), 208–222. https://doi.org/10.31529/sjms.2017.3.2.2

Ma, Q. K., Mayfield, M., & Mayfield, J. (2018). Keep them on-board! How organizations can develop employee embeddedness to increase employee retention. Development and Learning in Organizations: An International Journal, 32(4), 5–9. https://doi.org/10.1108/dlo-11-2017-0094