Non-Financial Motivation Methods
Motivating staff without extra pay: the management style a business uses, the way training and greater responsibility make work satisfying, and the fringe benefits that reward staff, and how to match each to the workforce.
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Motivating without more pay
Money is not the only way to motivate staff, and this module covers the non-financial methods. The management style a business uses matters: an autocratic manager decides everything alone, while a democratic manager involves staff in decisions, which many workers find motivating. Training and greater responsibility make a job more satisfying and show that staff are trusted. Fringe benefits are non-cash rewards such as a company car, staff discounts or free meals. This module looks at these methods and how to match them to a workforce.
Motivation words
Learn these before you match any method, and remember none of them is a direct payment.
Autocratic against democratic
The management style a business chooses can motivate or discourage staff. The two extremes differ in how much staff are involved.
How to match method to workforce
Money is not the only lever. For each non-financial method, ask what it does for the worker. Involving staff in decisions makes them feel valued. Training and more responsibility make a job more interesting and show trust. Non-cash rewards recognise good work without a pay rise. Match the method to what the workforce actually wants, and weigh it against simply paying more. A strong answer explains why a chosen method would motivate that particular team, not just names it.
Match the method to what it is
- a democratic management style
- training and development
- greater responsibility
- fringe benefits
- involving staff in decisions so they feel valued
- giving staff new skills and confidence
- trusting a worker with more control of their job
- non-cash rewards such as a car or discounts
Which method is this?
A firm gives its staff free gym membership and a company car. Which non-financial method is this?
- Fringe benefits, non-cash rewards.
- Commission on sales.
- A democratic management style.
- A higher salary.
Non-financial methods
Select the TWO non-financial ways to motivate staff.
- Giving a worker greater responsibility
- Offering training and development
- Paying commission on each sale
- Giving a cash bonus
Count the fringe benefits
A company already offers 2 fringe benefits, a staff discount and free meals. It then adds 2 more, a company car and health cover. Add these to find how many fringe benefits it offers in total. What is the answer?
Order how responsibility motivates
Put the steps by which greater responsibility motivates a worker in order, earliest first.
- A worker is given more responsibility
- They feel trusted and valued
- They work harder and take pride in the job
- They are more satisfied and likely to stay
Complete the facts
Ways to motivate staff that do not involve extra pay are _____ methods. The way a manager leads, such as involving staff or deciding alone, is the management _____. Non-cash rewards such as a company car are called _____ benefits. Trusting a worker with more control of their job is giving greater _____.
Match the worker need to the method
- a worker who wants their ideas heard
- a worker who wants to build new skills
- a worker bored by a simple, repetitive job
- a worker you want to reward without a pay rise
- a democratic style that involves them
- training and development
- greater responsibility to enrich the job
- a fringe benefit such as a discount
Spot the true motivation facts
Tap the TWO statements that are true about non-financial motivation.
- Fringe benefits are non-cash rewards for staff
- A democratic style involves staff in decisions
- Commission is a non-financial method
- Only money can ever motivate anyone
Choose the method
Read each case and choose the best non-financial method, with a reason.
- Staff feel their views are ignored and morale is low. Which change would motivate them without more pay?
- A capable worker is bored doing the same simple task all day. Which non-financial method would help?
- A firm wants to reward loyal staff but cannot afford pay rises this year. Which method fits best?
Explain non-financial motivation
Explain the non-financial ways a business can motivate staff and how to match them to a workforce.
- Explain how management style can motivate or discourage staff
- Explain how training and greater responsibility motivate a worker
- Explain what fringe benefits are and give an example
- Explain why non-financial methods can work when a pay rise is not possible
- Finish with a judgement on which method suits a bored, capable worker and why