Impact of Non-Monetary Rewards for Employee Satisfaction in Apparel Industry

Impact of Non-Monetary Rewards for Employee Satisfaction in Apparel Industry

Introduction

Reward management can be identified as a key concerning area of Human Resource Management to ensure employee satisfaction with their job and organization. Rewards can be offered through monetary and non-monetary forms. Both monetary and non-monetary rewards play a vital role in employee motivation through satisfying their multiple needs (Riast, et al., 2016). Non-monetary rewards strengthen the values of organizations within employees to enhance their satisfaction with the workplace. Herzberg’s two factor theory and Maslow’s hierarchy of needs are largely emphasizing the need of non-monetary rewards for individuals (Coccia, 2019).

 Non-monetary Rewards and Employee Satisfaction in Apparel Industry

Employee reward is related with both financial (monetary) rewards such as wages, bonus and financial benefits, etc. and non-financial rewards such as recognition, job enlargement, job security, career development opportunities, etc. (Armstrong, 2010).


                 Figure 1 – Types of Rewards

 Non-monetary rewards also called as intrinsic rewards that are link with the job of worker which bounces self-satisfaction such as job self-sufficiency, position, reputation, appreciation, etc.  (Coccia, 2019). Rewards are essential factor for employee satisfaction in apparel industry because without labors, the operations of such labor incentive industries become failure. Non-monetary rewards such as job enlargement, appreciation and recognition are largely influenced in this industry to retain a satisfied workforce.  Non-monetary rewards are largely connected to the emotional aspect of employees in the apparel industry (Safiullah, 2014). Such rewards embrace at the higher-level of needs of hierarchy and those are straightly associated to the self-actualization, gratitude and social needs of individuals (Velnampy , 2009). Most of studies found that there is a positive impact of non-monetary rewards on employee motivation (Pushpasiri & Ratnayaka, 2018). Employees are highly satisfied with appreciation and recognition provided by their employers. Employees tend to retain with a particular organization with the non-monetary rewards and they tend to internalize organizational values. Such rewards intrinsically motivate and satisfy individuals. Non-monetary rewards enhance employee commitment in the workplace, ensure retention, enhance productivity and disciplines with higher job satisfaction (Wickramasinghe & Sajeevani, 2018).

                             (Source: MTI, 2021)

Conclusion

Reward management is a crucial function in HRM and it is essential for providing both monetary and non-monetary rewards for employees to enhance their satisfaction with the job. Apparel industry is largely engaged with several non-monetary rewards practices to maintain a satisfied workforce as employees are key for their manufacturing process (Velnampy , 2009).

References

Safiullah, A. B., 2014. Impact of Rewards on Employee Motivation of the Telecommunication Industry of Bangladesh: An Empirical Study. IOSR Journal of Business and Management (IOSR-JBM), 16(12), pp. 22-30.

Armstrong, M., 2010. Armstrong's Handbook of Reward Management Practice. 3rd ed. London: Kogan Page.

Coccia, . M., 2019. Intrinsic and extrinsic incentives to support motivation and performance of public organizations. Journal of Economics Bibliography, 6(1), pp. 1-11.

MTI, 2021. MTI. [Online]
Available at: https://www.mtievents.com/blog/why-non-monetary-incentives-are-replacing-monetary-incentives/[Accessed 21 November 2021].

Pushpasiri, T. K. & Ratnayaka, R. M., 2018. EFFECT OF NON-MONETARY REWARDS ON EMPLOYEE JOB SATISFACTION: STUDY OF A PRIVATE BANKING INSTITUTION OF SRI PRIVATE BANKING INSTITUTION OF SRI. Vistas Journal, XI(1), pp. 41-56.

Riast, F., Aslam, S. & Nisar, Q. A., 2016. Do intrinsic and extrinsic rewards influence the job satisfaction and job performance? Mediating role of reward system. Journal of Management Info, XI(1), pp. 16-34.

Velnampy , T., 2009. Rewards and Employee Motivation -A study of Private Sector Organisations in Sri Lanka. pp. 1-18.

Wickramasinghe, M. & Sajeevani, T. L., 2018. The impact of rewards on retention of operational level employees in three apparel sector companies in export processing zone in Biyagama, Sri Lanka. Human Resource Management Journal, VI(2), pp. 1-15.

 

 

Comments

  1. Monetary rewards enhance the direct satisfaction of employees and non-monetary rewards are helpful for the recognition of employees and that recognition is a motivational tool for the employees and leads to the work engagement.

    ReplyDelete
  2. Monetary reward is directly motivational process to get worker satisfaction and it built their trust on company .
    Above article is really a true explanation on this regards .

    ReplyDelete
  3. Non-monetary benefits have an effective influence as well. Employees may lose some of their impact when they're not recognized with bonuses or promotions. The best way to reward an employee is to do so quickly Thanks to share

    ReplyDelete
  4. Non monetary benifits are essential to attracting a productive workplace.Benefits can be a key element in addressing the lowest level of of Maslow's need hierarchy.This is true and different blog , everyone can get benefit reading this blog.

    ReplyDelete
  5. Agreed with your words.
    Money does not buy happiness but appreciation, recoginition and motivation have biggest impact on morale.

    ReplyDelete
  6. In fact non monetary rewards is a key factor in employee satisfaction. Unlike monetary rewards it's very difficult for human resources managers handle and assess employees for non monetary rewards like promotions, recognition etc. I believe this process is much more difficult in apparel sector because managers has to work with large number of employees in a same grade.

    ReplyDelete
  7. The main objective was to analyze the effects of non-monetary items such as recognition, training, and rewards and incentives on employee productivity. When employees are motivated,
    they develop a willingness to work hard and thus increase performance.

    ReplyDelete
  8. Monetary rewards enhance the direct satisfaction of employees and non-monetary rewards are helpful for the recognition of employees and that recognition is a motivational tool for the employees and leads to the work engagemen. Everyone can get benefit reading this blog. Thanks to share.

    ReplyDelete
  9. I have read this article carefully. I really like these writing. I have learned a lot of new things
    I would like to get many more articles like this from you.
    Thank You.

    ReplyDelete
  10. Non-monetary motivational are being made which help the
    organization to motivate their workers and thus they can
    perform better in their workplace.

    We have huge learning scope from this blog.

    ReplyDelete
  11. I really like this words and agreed with your words.Non monetary motivational which will help our Organization also.
    Money does not buy happiness but appreciation, recoginition and motivation have biggest impact on morale.

    ReplyDelete
  12. This article described and illustrated the effect of different nonmonetary rewards on employees performance. It seems very effective contents.

    ReplyDelete
  13. Non-financial rewards such as health benefits, care on the family members of employees and giving vacations for employees should also be considered in order to motivate employees.

    ReplyDelete
  14. Definitely it's a use full artical I love to learn and keep learning by this

    ReplyDelete
  15. It will very much helpful for the managements involved with RMG as well other sectors

    ReplyDelete
  16. Monetary and non- monetary both are important to enhance the satisfaction of employees. But non- monetary rewards are more helpful to recognition of employees with motivated thus they work hard and increase better performance.

    Very important topics that I learned here.

    Thank you.

    ReplyDelete
  17. Non-monetary rewards are largely connected to the emotional aspect of employees in the apparel industry. This is very important article. Thanks to share.

    ReplyDelete
  18. Non-monetary rewards enhance employee commitment in the workplace, ensure retention, enhance productivity and disciplines with higher job satisfaction. Important role. Thanks to share

    ReplyDelete

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