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Employee motivation 2024 - top 10 non-financial motivation tools

Money is not the only thing that matters - companies are constantly working to improve employee satisfaction and the attraction of prospective employees through a variety of non-wage incentives. RSM Hungary has compiled a list of the 10 non-wage motivational tools that are perceived to be most important for white-collar workers.

Dolgozói motiváció 2024 - top 10 nem pénzbeli motivációs eszköz-

Employee motivation - is money all that matters?

"Monetary rewards, while initially motivating, become less so over time as employees become accustomed to them. Inflation-linked wage increases are a tangible expectation for workers, and ensuring that employers have the budget for wage increases and remain competitive in the market is an ongoing challenge. If employees receive a smaller wage increase than they had imagined - whether it is a legitimate or unrealistic demand - the motivational effect of the increase may be negligible" - summarised Bernadette Bohács, Head of HR Consulting at RSM Hungary.

Non-monetary motivational tools

Non-financial motivational tools include a wide spectrum of elements that reflect employees' inner desires and aspirations.

Let's see which are the TOP 10 non-monetary white-collar motivational tools in 2024 that will contribute most to employee satisfaction!

1. Recognition, appreciation, feedback

Real recognition and appreciation are powerful motivators that validate employee contributions and reinforce a sense of belonging within the organisation. Whether through employee recognition, manager praise, or formal recognition programs, reinforcing the efforts of individuals fosters a culture of recognition.

"Performance appraisal systems also help achieve this very goal by providing an ongoing dialogue between manager and employee."

The manager provides the employee with real-time feedback on performance, development and career building opportunities, thereby increasing engagement and motivation.

2. Professional development and progression, challenging assignments

The opportunity for skills development, career building and personal development are among the most coveted non-financial motivators for employees.

"Training programs, professional and skill development training are essential to the life of a successful company."

Challenging tasks are also a powerful catalyst for employee motivation, engagement and professional development, as they encourage continuous learning and development.

3. Involving and learning organisation - open, two-way communication

Open communication, providing opportunities for feedback and collaboration allows employees to voice their concerns, contribute innovative ideas and actively participate in shaping the organisational environment. Employee satisfaction surveys are widely used and the results can be used by management and the HR team to improve processes, working conditions and motivational tools.

As a result, the HR team can also help to stimulate and encourage the participation of employees and the development of new ideas and tools to improve their performance.

4. Work life balance

In our era of heightened awareness of mental health, workers prefer workplaces where work-life balance is respected.

Flexible work arrangements, welfare, stress relief programmes and work-life balance initiatives are a powerful motivator.

5. Flexible working hours, working from home

Flexible working arrangements, flexible working hours and the possibility to work from home are becoming increasingly important for employees. For some professions, it is an advantage if the company offers the possibility to work from home.

Consideration of individual circumstances is essential when designing flexible working arrangements. While for some people the compulsory home office is an attractive proposition, for others it can be a distinct disadvantage, either because of the layout of their home or because of children's schedules.

Employers cannot ignore the fact that a growing body of research shows that excessive home-office use can cause social anxiety, isolation and inefficiency.

6. Health maintenance programmes

Programmes that promote physical, mental, emotional and financial wellbeing have a significant motivational power. There are many ways in which this can be implemented in companies: company gym, company doctor, psychologist, massage, physiotherapy, yoga, free fruit, screening tests, presentations on healthy living and financial awareness. Health promotion programmes increase employee engagement and applicants are more likely to choose a company with such programmes.

7. Corporate events and community programmes

Providing team-building events, company get-togethers, volunteer opportunities, group sporting events and outings builds relationships, work morale and a sense of belonging among employees.

8. Suitable working environment and equipment

An optimal working environment allows workers to work more efficiently, reduces stress and fatigue, improves mental and physical health and increases work morale. Providing workers with the tools they need to work, such as ergonomic furniture, spine-friendly chairs, lifting desks, safety glasses for working in front of a monitor, noise-cancelling walls in open offices, is also a very important retention factor. The quality of these is also very important, because they are of value to workers and often play an important role in preventing accidents and ill health at work.

9. Cultivating a values-based culture

Organisations that embody their core values and advocate ethical behaviour foster a culture that inspires trust, loyalty and commitment among employees.

10. Diversity and inclusion

Accepting diversity and fostering an inclusive work environment not only enriches organisational culture, but also promotes a sense of belonging and psychological safety among employees.

Bernadette Bohács believes that by taking a holistic approach to motivation - integrating financial incentives with non-monetary incentives - companies can develop motivated, engaged employee teams that make a lasting contribution to the success of the company in an ever-changing environment of highly competitive business.

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