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Types of non-financial rewards

Job enrichment (AO2)

"Working hard for something we don't care about is called stress. Working hard for something we love is called passion."
- Simon Sinek, US author and inspirational speaker

Job enrichment is about enhancing the experiences of workers, giving workers a wide range of challenging tasks and more responsibility at work. This entails more training, upskilling and encouraging workers to take part in decision-making. Workers are involved in a wider variety of tasks, which require new skills.

Job enrichment helps to build employee confidence, competence and a sense of achievement in the workplace. Hence, employers gain from a more motivated and skilled workforce. However, job enrichment has cost implications for businesses - namely the costs of training, developing and upskilling workers.

Advantages of job enrichment

Disadvantages of job enrichment

Gives employees additional challenges to enhance their self-worth and esteem

Employees may feel pressured by taking on additional roles and responsibilities

Encourages employees to be more proactive and productive

There may be disputes about appropriate remuneration (financial and non-financial) for the extra responsibilities

Extra tasks could lead to future promotion

It is not appropriate for many job roles or unskilled workers

Employees feel recognised, especially if appropriately rewarded

In can be costly to create incentives for employees to embrace job enrichment, e.g., training costs

Job enrichment usually requires training

Job rotation (AO2)

Job rotation is an operational management technique and form of non-financial motivation that involves workers switching between jobs (tasks) for a period of time. For example, a supermarket employee might operate the tills at the checkouts for a couple of hours, before switching to stacking shelves and then working in the bakery or delicatessen departments.

Job rotation is a common work practice in supermarkets

Job rotation is considered to be a type of non-financial motivation system as it broadens the range of job roles, activities or tasks that a worker gets involved with. It helps to spread the range of skills and expertise within the business. Job rotation creates greater variety of work for staff, so their job is less monotonous and repetitive. On the contrary, workers are more flexible and adaptable.

However, a potential drawback of job rotation is that labour productivity might fall, especially if workers have to perform too many jobs. In addition, there is the greater demand for staff training, which can be both time consuming and expensive.

Advantages of job rotation

Disadvantages of job rotation

Can help to reduce boredom and monotony from overspecialization

Increased burden as workers need to learn and take on additional roles

Upskilling of staff helps to make it easier to cover for absent colleagues

Higher training costs to ensure employees are upskilled

It enables the employer to benefit from a more widely trained workforce

Some employees see this as merely adding to their workload, especially without remuneration

Job enlargement (AO2)

Job enlargement

Job enlargement is a type of non-financial motivation that takes place when more tasks or activities are added to a worker’s job description. These tasks are usually of a similar level of skill, which is why job enlargement is sometimes referred to as horizontal loading. Job enlargement gives workers greater variety in their jobs, thereby reducing the boredom associated with the nature of repetitive tasks.

Job enlargement involves giving additional tasks to workers

Note: although job rotation and job enlargement are used to prevent boredom, they are not necessarily enriching experiences for workers.

Advantages of job enlargement

Disadvantages of job enlargement

Can help to prevent boredom with repetitive tasks

Can reduce productivity as workers may be less efficient at completing a whole task
Upskilled workers gain a variety of skills which helps to increase productivityIncreased workloads may become unmanageable or unsustainable for some workers
Workers gain additional skills and experiences, which can improve their career prospectsSome workers may see this as a way to get them to perform more tasks but for the same pay

Empowerment (AO2)

Empowerment is the delegation of decision-making power to workers, thereby helping to boost their morale. It involves granting workers the autonomy and authority to be in charge of their own jobs and to execute their own ideas. It is a type of non-financial reward system because it involves giving workers more responsibility and independence to do their jobs. By contrast, employees are not empowered if they have to follow strict and countless instructions and procedures set by the company.

Empowerment can have positive impacts on motivation as it encourages independent decision making (autonomy under Deci & Ryan's motivation theory), and being able to take ownership and responsibility for the outcome of their work. It shows that line managers have trust in their subordinates, which can help to boost employee morale and job satisfaction. Empowerment also enables senior managers to focus their energies on strategic planning.

Successful empowerment in the workplace requires effective:

  • Delegation - The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project or job role.

  • Autonomy - The ability to make informed decisions in an independent or self-governing way.

  • Employee participation - This means that workers are given responsibilities and autonomy to do their jobs.

  • Continuous professional development (CPD) - Training and learning activities to enhance the professional practice and capabilities of employees.

Purpose (the opportunity to make a difference) (AO2)

Purpose is an intrinsic, non-financial type of motivation because people believe they do genuinely meaningful work. Non-financial motivation often involves to having opportunities to make a difference, be it on a personal, professional or social level. Having the personal drive to make a positive difference is not due to financial incentives, but driven by intrinsic motivation and working for a good cause. Examples include:

  • Doctors, nurses, and other healthcare professionals

  • Firefighters

  • Police officers

  • Teachers and teaching assistants

  • Psychiatrists and counsellors

  • Charity workers and volunteers.

People in these professions do not necessarily work because of the pay itself, but the purpose associated with the profession. For example, doctors, nurses and healthcare professionals want to look after other people in society; fighter fighters and police officers want to protect the safety of others; teachers want to make a difference to the lives of young people. People in these professions are inherently motivated by having the opportunity to make a difference to others and society as a whole.

Firefighters work to make a difference in society

Watch this short video from Kellogg School of Management about how to keep your team motivated and answer the three questions that follow:

  1. What are the four strategies suggested by the Kellogg School of Management to keep employees motivated?

  2. Which step can be considered as an example of empowerment?

  3. Which step can be considered as an example of purpose?

 Teacher only box

Suggested answers

1.  What are the four strategies suggested by the Kellogg School of Management to keep employees motivated?

  • Step 1 - Develop a team contract

  • Step 2 - Conduct short frequent meetings

  • Step 3 - Stand up and deliver weekly accomplishments

  • Step 4 - Create a line of sight for employees to see their impact on the team’s end goal.

2.  Which step can be considered as an example of empowerment?

  • Step 1 - Developing a team contract is an example of empowerment as this involves employee participation, used to create a working agreement for the team.

3.  Which step can be considered as an example of purpose?

  • Step 4 - Creating a line of sight for employees to see their impact on the team’s end goal is an example of purpose (the opportunity to make a difference) because this allows team members to build ongoing and positive relationships with longer term benefits for the business.

Teamwork (AO2)

"A boat doesn’t go forward if each one is rowing their own way."
- Swahili Proverb

"You can do anything, but not everything."
- David Allen, American productivity and management consultant

"Don't underestimate the value of having a good team. You don't become successful on your own. Really good people."
-
Alicia Quarles (b.1981), American celebrity journalist

Teamwork refers to the combined efforts of a group of workers to achieve of an organizational goal. As a form of non-financial motivation, teamwork can be a rewarding experience as employees can support each other to achieve a common objective. Being able to work with others can help to meet social needs (Maslow) and help to build trust, cohesion and cooperation. Hence, effective teamwork helps to improve job satisfaction, morale and productivity in the workplace.

There are mutual benefits to teamworking in the workplace

For the organization, teamwork helps to maximise group dynamics, as different workers have different skills, talents, experiences and expertise. Hence, the business benefits from greater flexibility and improved outcomes. In essence, teamwork divides the input but multiplies the outcomes.

However, teamworking can also create problems:

  • Rivalry between team members can be counter-productive

  • Conflict can arise when there are disagreements

  • Teamworking does not necessarily suit or motivate everyone.

 Watch this animated video about the power of teamwork. Consider the contents of this video prior to having a go at the ATL activity that follows.

 ATL Activity (Social and Self-management skills) - The Spaghetti & Marshmallow Challenge

"Coming together is a beginning. Keeping together is progress. Working together is success."
- Henry Ford (1863 - 1947), founder of the Ford Motor Company

"Great leaders are not the best at everything. They find people who are best at different things and get them all on the same team."
- Eileen Bistrisky, Canadian entrepreneur and business consultant

"Most success stories are less about competition and more about collaboration."
- Michelle Yeoh, Academy-award winning actress and UNDP Goodwill ambassador

Officially known as The Marshmallow Challenge, this activity is a popular team building game used in schools and the corporate world to demonstrate the importance of collaboration, cooperation, and teamwork skills.

Time: Approx. 40 mins

Items: For each group, you will need: (i) around 20 pieces of individual dry spaghetti, (ii) one roll of adhesive tape, (iii) some string, and a (iv) marshmallow.

Challenge: In groups of 3 or 4, build the tallest and most stunning free-standing structure with the marshmallow on top. The structure must not hang or lean on any other objects. The whole marshmallow must be on the top of the tower. You will be judged by the height and beauty of your structure.

Teacher notes

The Marshmallow Challenge is a popular team building game.

Allow teams to break their spaghetti and cut their string or tape into bits if they so wish. Ensure that the rules are clearly understood by everybody

Additional materials that may be needed:

  • Paper bag (to put the items required for each team). However, the paper bags can’t be used for the construction.

  • Measuring tape - to measure the height of the tallest towers/structures

  • Stopwatch or digital timer shown on classroom whiteboard.

As the student build their structure, walk the classroom and observe how each team is getting along and notice how they build and innovate their tower (so that you can provide the class with some feedback at the end).You are the judge of what is deemed to be the most stunning/beautiful structure.

According to the creators of The Marshmallow Challenge, the task highlights the need to be aware of the costs (more spaghetti pieces, string, adhesive tape, and marshmallows will make structures even taller and larger), customer preferences, time/duration to complete the project, and time to test the product as soon and as frequently as possible. The task also highlights the importance of innovation to thrive in the business world.

Source: Adapted from The Marshmallow Challenge

Key terms

  • Empowerment is type of non-financial reward whereby employees are entrusted by their managers with greater responsibility and decision-making power over their own work.

  • Job enlargement is a type of non-financial motivation that takes place when more tasks or activities are added to a worker’s job description.

  • Job enrichment is about enhancing the experiences of workers, giving workers a wide range of challenging tasks and more responsibility at work.

  • Job rotation is an operational management technique and form of non-financial motivation that involves workers switching between jobs (tasks) for a period of time.

  • Purpose is an intrinsic, non-financial type of motivation because people believe they do genuinely meaningful work.

  • Teamwork refers to the combined efforts of a group of workers to achieve of an organizational goal.

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