A STUDY ON FINANCIAL AND NON FINANCIAL INCENTIVE EFFECT ON EMPLOYEES PERFORMANCE

Abstract

An incentive is a commodity that helps or derives a person to do something or it helps in motivating people for doing their jobs. there are two types of incentives that help people motivate themselves: Financial and non-financial. A financial incentive is a type of monetary benefit given to employees to do better work in a particular area at a particular time. for example stock options, profit sharing, bonuses, etc. however non-financial incentives are the types of prizes that are not a part of an employment contract Typically, they cost the company little or no money, yet carry significant weight. ... As companies continue to make cuts to employee compensation, non-financial incentives for employees are more crucial than ever. It is a form of appreciation for the exceptional performance of their employees. the inactive can usually pass the salary and the employment contract as giving something extra above the salary means the incentive to employees. Today, many employees are paid based on individual performance or have a feature that includes financial incentives based on individual performance. As one success is difficult to measure, financial incentives are focused on measurable accomplishments. This means that many employees Sare being rewarded upon their efforts originating from observed performance metrics, particularly at a specific stage Administrators or with a large portion of recognizable success (sales, consulting) When the pay is sufficient and capable of fulfilling the individual's needs, financial rewards in the workplace become the most significant and powerful influence on the individual's willingness to perform the work. However, it is observed that pay has never been and will perhaps never be sufficient for employees. It is very important to give employees both financial and non-financial incentives from time to time as it helps the productivity of the employees and increases their efficiency. it helps a creating a work culture for employees. with the help of incentives, the company can get their top performers . these incentives help the company and help the employees in making them help in their growth in the company. It helps them in motivating their staff to their goals.in factories giving incentives helps them in taking the best out of the labor it helps them in less staff turnover or strikes. it also brings more loyalty to the firm and helps them in their daily work routines. incentives help the organization in many ways so they are important to a firm, company, or factory.