Productivity and efficiency for any organizations could make a difference to their success in staying ahead of competition, and for this best guys stay on with the organization. Talented working force is the key factor for them to make growth in the markets while fulfilling customers demand.
In the modern workplace human resources are valued above all others. Skilled work force is essential to the prosperity, productivity and performance of any company. The success of any business depends largely on the motivation of the employees, and it is the key to creating an environment where optimal performance is possible. Motivated employees are productive, happy and committed. Organizations should ensure their employees in their jobs would be happy and make the best talents stay on with the organizations.
Employees need motivation to stay, work and to be efficient. Without an extra scoop, organizations may find difficult to retain their staff. In the sense, cash or non cash incentives are one way of keeping folks happy. Incentives are not only encourage productive performance but also show employees the company cares.
Some are motivated by recognition and some others by cash incentives that should be figure out while spending some time with employees. Cash incentives are monetary compensation or rewards for the exemplary work had done to the company's cause. On the other hand, non-cash incentives are other non-monetary forms of recognition of the employees’ contributions. These could involve awarding of points based on performance, travel allowances, reimbursements, retail vouchers that could be exchanged for merchandise or activities, trips and events.
Employee recognition schemes form a vital part of the non-cash incentive programme.
Non-cash incentives are proactive and forward-looking in which the performance level and standards are spelt out for the employee to aim for and work towards. Employee recognition schemes, on the other hand, go by past performances to decide on eligibility for the incentive. Employee recognition scheme may not specifically mention the target level of performance or the incentive that would be awarded for performance.
Cash which is the most flexible award does have limitations like tax liability, and does not add much social value. On the other hand, non-cash incentives may help employees to get tax redemption. Moreover, non-cash durable awards come with an emotional attachment which makes the recipient and the family member feel special.
