A Study of Relationship between Financial Rewards and Employees Motivation | Original Article
Employees lacking motivation can present a problem for all types of organizations, and there can be far-reaching impacts when employee performance is down. The ability to foster a motivating work environment is essential, and strategies must focus on how employee satisfaction and performance levels are tied to motivation. There are several ways that organizations can engage their workforce, and this study allows for an examination of the impacts of financial and non-financial rewards with respect to overall levels of employee motivation. Reward management process covers both financial and non-financial rewards. The concept of the psychological contract is at least as important in understanding and managing motivation as the technical elements of the economics and transactions aspects of reward. Hence, in this paper, we find out the role of incentives in motivating employees and suggest the organizations to make suitable alterations in their rewards system. The researchers have found from the survey that there are different factors that affect the motivation of employees which can be classified into two categories financial and non-financial rewards. Although financial rewards are important for employee motivation in third world countries like India, where the inflation rate is so high that people are struggling hard to retain their social status but the importance of non-financial rewards cannot even be discriminated. The paper provides a basis to understand the issues of employee motivation in organizations.