Financial methods of motivation are the best way to motivate all workers It has several methods to motivate people to work hard in companies. These methods can be divided into two groups: financial methods and non-financial methods. Financial methods include commission, bonus, profit sharing and the like. Non-financial methods mean other ways to encourage employees without money, such as a better working environment, friendly colleagues and respect from the boss. Nowadays, an increasingly number of companies pays attention to the ways which can stimulate people.
Some people think that financial methods are the best way to motivate all workers. However, financial methods of motivation are not always the most suitable way to motivate workers, and moreover not all workers. It depends on the working environment which each worker finds. This essay will first explain that money is useful to some people, and then extent to that other ways to encourage people will be examined by looking at some examples. Admittedly, financial methods are the best way to motivate some workers.
Firstly, workers whose basic needs for food and shelter are not met. As Maslow’s theory, their “physiological needs” cannot be met. So they just need money. For example, people working for developing countries who get low pay in factories or agriculture. They do the same work for a long time but only make little money. Money becomes the most essential thing for them. Secondly, workers whose prime interest is getting high salaries and bonuses also can be motivated by financial methods. Worker in corporate business such as a banker is the best example.
While they do more researches on economics or statistics, they may get a rich bonus. No bankers will refuse to work hard with abundant money. Because no work, no bonus. Another group people who focus on money are workers whose payment is related to commission, like salesmen. ”A salesperson, for example, may be paid entirely on the basis of their sales record. Alternatively, a worker may be paid a basic salary and then receive commission on top. Commission based pay systems are intended to ‘incentivize’ workers by tying in pay with output. (Chambers and Gray, 2008). For these people, the most effective way to stimulate is financial methods. On the other hand, if basic needs are met, amount of people are more motivated by other factors, in other words, non-financial aspects. It includes significant numbers of motivated ways. First of all, environment of workplace is quiet crucial for some people, for instance, computers designers in Google. It is known that people who work as designers need have an unlimited environment workplace because they have to thinking new ideas all the time. Google engineers are encouraged to take 20% of their time to work on something company-related that interests them personally. ” It is said that if engineers are given the chance to apply their passion to their company, they can do amazing things. (Medirata, 2007). Also, non-financial welfare is a factor can motivate employees to work harder. It is quite famous that John Lewis is the best company in Britain to work for. “Besides the bonuses, John Lewis partners also have a rare and near-priceless non-contributory final salary pension scheme. This scheme means that the employees and one of their family members get 25% off most John Lewis products and 15% in Waitrose. In addition, half-price theatre and concert tickets; subsidies for whatever educational or leisure course they want to follow and so on (Henley, 2010). These methods make all of workers love their company so that they will try their best to work for the company. Furthermore, colleagues that people work with or inability to develop also can motivate people.
For example, Volvo’s team working encourages workers work for different new products together. The friendly atmosphere can make workers pay more attention to their work. In conclusion, no matter financial methods or non-financial methods play an important role to motivate people to work hard. As mentioned in section 2, it is more effective to encourage people by non-financial methods. While financial methods are not the best way to motivate all workers. It is obviously that different people are stimulated by different methods in diverse situations.
Therefore, the best way to motivate employees is combine financial ways and non-financial methods if the company has the ability. Bibliography Chambers, I. and Gray, D, eds. (2008). Business Studies. 4th Edition. Harlow: Pearson Education- Units 66-68. Henley, J. (16/03/2010). Is John Lewis the best company in Britain to work for? www. guardian. co. uk/business/2010/mar/16/john-lewis. Viewed 14/08/2011 Medirata,B. (21/10/2007). The Google way: give engineers room. www. nytimes. com/2007/10/21/jobs/21pre. html. Viewed 14/08/2011