Some of the non financial incentives to motivate people for improving their performance are: 1. Status 2. Organisational Climate 3. Career Advancement Opportunity 4. Job Enrichment 5. Employee Recognition Programme 6. Job Security 7. Employees’ Participation 8. Employees’ Empowerment.

Non financial incentives refer to those incentives which help in satisfying psychological, social and emotional needs of an individual. However, monetary aspect may also be there in non financial incentives. For example, promotion of an individual in an organisation satisfies him psychologically as he gets a feeling of increase in status and authority etc.

Along with this there is some increase in salary too. In this case, monetary aspect is over and above non monetary aspect.


Following are some of the important non financial incentives:

1. Status:

Status means one’s position in an organisation. The status given to the job of an individual in the form of authority, responsibility, rewards, prestige, recognition etc., help in satisfying the psychological, social and esteem needs of an individual.

2. Organisational Climate:

The various characteristics of organisational climate like individual freedom, consideration towards employees, reward orientations etc. have a great impact on the behaviour of the workers.

3. Career Advancement Opportunity:

Promotion plays a very important role in encouraging employees to improve their performance. Managers should provide appropriate opportunities to the workers to improve their performance so that they can be promoted to higher level jobs.

4. Job Enrichment:


Job enrichment refers to the process of designing jobs with more variety of work content, requiring higher level of knowledge and skills. It provides more freedom, responsibility and opportunity for personal growth to the employees. An enriched and interested job is in itself a source of motivation to an individual.

5. Employee Recognition Programme:

Recognition means “appreciatory acknowledgement”. Usually the employees want that their work should be given due recognition. Recognition means acknowledgement with a show of appreciation.

When the required appreciation is given to the workers they feel motivated to perform better. For example, displaying the achievement of an employee on the notice board, providing certificate for good performance, giving momentos, congratulating the employee for best performance etc.

6. Job Security:

Security regarding job and future income inspire the employees to work with full zeal and enthusiasm. This concept is more important in India since the number of jobs are very less and the number of job seekers is more. However, the negative aspect of this incentive is that when the people are assured that their job is secured they may become lazy.

7. Employees’ Participation:


It means involvement of employees in the decision making process on issues concerned with them. Various committees, like Joint Management committee, Canteen committee, Purchase committee etc. can be formed to motivate employees.

8. Employees’ Empowerment:

Empowerment refers to providing more freedom and powers to subordinates. This creates positive feeling in them and inspires them to use their skills and talents in performing the job.