The best ways to incentivise staff
I recently found an interesting research paper which discusses this exact topic. Let’s explore “The Role of Incentives as a Motivation Factor on Job Satisfaction: A Case Study of the Banking Sector” published in the International Journal of Teaching, Learning, and Education in 2022.
The article emphasises the profound impact of recognition and appreciation on employee motivation and job satisfaction. According to the researchers, it is crucial for companies to recognise the contributions of their employees, valuing and respecting them beyond merely providing benefits. This recognition can take various forms, such as having their names printed in the corporate newsletter, receiving letters of recognition, extra vacation time, or simply expressing gratitude verbally. These acts demonstrate care and appreciation for the employees, fostering a positive work environment.
The study reveals that non-monetary awards have a greater effect on motivation compared to monetary rewards. When employees receive non-monetary recognition, they feel respected and valued by their organisation. This recognition contributes to maintaining their self-esteem and motivation levels. Highly motivated workers, in turn, tend to perform exceptionally well and become recognised in their field. This positive cycle reinforces their inclination to actively participate in activities that drive organisational goals. By operating in this manner, organisations can effectively achieve their objectives.
Furthermore, the research highlights that recognising employees not only enhances motivation but also boosts staff morale, resulting in overall increased productivity within the organisation. Expressing gratitude to employees is identified as a crucial component of motivation. The study suggests that successful organisations should strive to obtain both intrinsic and extrinsic incentives to promote employee engagement and satisfaction.
Interestingly, the research identifies a lack of appreciation as the second-leading cause of occupational psychological anguish. The absence of recognition negatively impacts stress tolerance and hampers managers’ ability to navigate demanding professional settings. Recognition emerges as a significant driver of organisational mobilisation and engagement. In conclusion, the increased job satisfaction resulting from recognition and appreciation positively contributes to the effectiveness and prosperity of businesses.
The study also identifies a gap between the need for acknowledgment and existing HR management methods in the workplace. The prevalent power and dominance paradigm in organisational and personal conduct exerts significant pressure on recognising employees. Societal and organisational factors further contribute to the growing need for employees to be acknowledged for their contributions.
In terms of statistical significance, the study finds that monetary rewards as incentives have a substantial beneficial impact on work satisfaction at or above the 5% threshold, which shows that the increased satisfaction was not simply by chance. The use of incentives, including recognition, significantly influences job satisfaction at or above this threshold. Recognitions that motivate at the 5% level have a considerable positive impact on job satisfaction.
So there it is; the research suggests that the best way to incentivise staff is through recognition and appreciation. Both monetary and non-monetary rewards can be effective, with an emphasis on non-monetary forms of recognition. Creating a work environment that respects and values employees is crucial for enhancing job satisfaction and overall productivity. By incorporating these practices, organisations can foster a motivated and engaged workforce.