HR Strategies in Motivating Employees with Non-Financial Benefits

 

In today’s challenging business environment, organizations are continually trying to find ways to motivate their workforce. While monetary rewards are often considered effective, non-financial benefits can also play an equally important role in increasing the employee satisfaction and motivation. In Sri Lanka, HR professionals are increasingly turning to non-financial strategies to motivate employees, ensuring that they are not just content but also highly motivated.

What is a Non Financial Benefit?

A non-financial reward is any incentive or benefit provided to employees that enhances their job satisfaction and motivation without directly involving cash payments. These rewards focus on aspects like recognition, career development, work-life balance, and a positive work environment.

1. Recognition and Acknowledgment: The Power of Appreciation

Giving recognition to an employee can be one of the most powerful non-financial motivators in a the workplace. Acknowledging employees for their hard work and accomplishments can lead to higher morale. In Sri Lanka, where employees highly value respect and recognition, HR departments can use strategies like employee of the month programs, public appreciation, and peer-to-peer recognition to further enhance employee motivation levels in an organization.

According to Herzberg’s Two-Factor Theory, recognition falls under the “motivators” category, which directly impacts job satisfaction and motivation. Herzberg emphasized that employees are motivated when they are recognized for their achievements, which contributes to a positive workplace environment.

MAS Holdings, which is one of the leading apparel manufacturer in Sri Lanka, has incorporated a strong recognition system within their HR practices. The company’s “Employee of the Month” initiative not only celebrates top performers but also encourages healthy competition and fellowship among employees. This approach significantly contributes to employee satisfaction and retention.

2. Work-Life Balance: Flexibility as a Motivator

Work-life balance has become an essential factor in motivating employees, particularly in Sri Lanka where family ties and personal well-being are highly valued. HR departments that offer flexible working hours, work-from-home options, or compressed workweeks can greatly improve employee satisfaction and help to reduce stress.

Maslow’s Hierarchy of Needs suggests that employees must satisfy their basic needs before they can focus on higher-level needs such as self-actualization. Providing employees with work-life balance helps fulfill their need for safety and social belonging, which will help in boosting their motivation.

Dialog Axiata, a leading telecom company in Sri Lanka, introduced flexible working hours and remote working options for employees, especially in response to the COVID-19 pandemic. This flexibility has not only enhanced productivity but has also contributed to a positive work culture and increased employee loyalty.

 

3. Career Development and Growth Opportunities: Promoting Continuous Learning

Employees are motivated when they feel they can grow within the organization. Enabling opportunities for skill development, training, and career advancement plays a significant role in keeping employees engaged. In Sri Lanka, where employees highly value professional development, HR departments can implement mentorship programs and access to training platforms to provide employees with continuous learning opportunities to keep the workforce motivated

According to McClelland's Theory of Needs, employees are driven by a need for achievement. Providing them with growth opportunities satisfies this need and builds a culture of high performance.

John Keells Holdings, one of Sri Lanka’s largest conglomerates, provides various career development programs such as The John Keells Leadership Academy. Through this initiative, employees have access to training and leadership development programs, preparing them for higher roles within the organization. This commitment to career growth significantly enhances employee engagement.

4. Building an Inclusive Work Culture: Fostering Belonging

An inclusive work culture where employees feel valued, respected, and supported contributes to motivation and loyalty. HR departments can implement diversity and inclusion initiatives, employee well-being programs, and team-building activities to create a sense of community.

Hemas Holdings, a diversified Sri Lankan company, places a strong emphasis on inclusivity and employee well-being. They offer wellness programs, childcare support, and employee resource groups focused on diversity, ensuring that all employees feel included and valued. This commitment to inclusivity has resulted in high employee retention rates..

Conclusion

Non-financial benefits play an important role in motivating employees in an Oranization. HR strategies focusing on recognition, work-life balance, career development, and inclusivity create an environment where employees feel valued and engaged. By implementing these strategies organizations can enhance job satisfaction, reduce turnover, and foster a motivated, high-performing workforce.

 

Links

• https://hbr.org/2021/01/work-life-balance-is-a-cycle-not-an-achievement
• https://dlg.dialog.lk/careers
• https://books.google.ca/books/about/The_Motivation_to_Work.html?id=KYhB-B6kfSMC&redir_esc=y
• https://www.simplypsychology.org/maslow.html
• https://www.scirp.org/reference/referencespapers?referenceid=1860341
• Hemas | Home
• Hemas Holdings - Employee Well-being

References

Harvard Business Review. (2021). Work-life balance is a cycle, not an achievement.

Dialog Axiata PLC. (n.d.). Careers at Dialog.

Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work. Wiley.

McLeod, S. (2020). Maslow’s hierarchy of needs. Simply Psychology.

Scientific Research Publishing. (n.d.). Reference: Employee motivation theories and practices.

Hemas Holdings PLC. (n.d.). Hemas: Employee well-being and corporate initiatives.