Non-monetary Compensation or Cash Rewards Essay
An employee working in a company is definitely working for money and other compensation only follow it. It is certain that people do not work for free and they usually prioritize jobs that offer big salary and cash rewards. Compensation, either monetary or non-monetary, matters a lot to both the employer and employees. It is the considered as a fundamental part that both of them ascribed in the employment relationship (Boom, 2008).Good companies usually offer their employees rewards and compensation in a monetary and non-monetary form. Companies offer good compensation to attract and keep good talents of their employees. However, most people usually associate compensation to money (Smith, 2005).
And most of the time, an employee would rather prefer receiving money as a form of compensation for a job well done instead of receiving either monetary or non-monetary reward. Employees become more motivated when they receive a bonus in the form of money. However, companies find it objectionable to give an additional salary, especially when the company is facing an economic dilemma. Moreover, good companies do not think that compensation is not all about money; compensation involves meeting the needs of their employees. Non-monetary benefits may include any benefits that are as valuable as money but do not have any tangible value (Fogleman).
Instead of cash rewards, most companies offer their employees flexible time, retirement programs, insurance, paid leave, subsidies, and child care.As stated previously, most of the compensation that companies offer to their employees is rated with money as a reward for their good job. Monetary compensation is now as valuable as non-monetary compensation.
It might be because of the fact that money has an essential part in our survival. Nowadays, money is the only means for humans to acquire and meet our daily needs. Humans need money to be able to buy basic needs such food, clothing and water. It is now as valuable as the air that we breathe. It is also the key for us to achieve safety and security in the form of insurance and savings (Smith, 2005). We think that we are safe and secure whenever we have insurance and savings in the bank, but for us to be able to avail or acquire this we must first have easy access to money. To have easy access to money, people tend to work hard and do their job properly. People usually think that it is more efficient and economical to receive cash rewards instead of non-monetary compensation since they think that they have easy access to their basic needs when they have cash in their hands.
Indeed, it is the purchasing power of money that people have in mind when they think of increased salary. Moreover, some of the non-monetary incentives are viewed by the employees as luxuries thus they do not typically prefer to acquire it. In the world today, most people do not even more think about luxuries, what really matters to them is their safety and their future. Other non-monetary compensation seems to be as valuable as money. However, people still prefer to receive cash rewards since they think that they can also acquire non-monetary compensation if they earn more and receive cash rewards.
Moreover, money does not only satisfy humans economically. People tend to have different attitudes toward money. The behavior of people towards money is a combination of various aspects such as economical, social and psychological. Most of the time, it is the economic aspect that drives people work hard. Money serves as a driving force to people to work harder and become more motivated to achieve their own goals. People will work hard to get higher position in a company as well as to receive authority. Subsequently, their hard work will mean that they will get increase in their salary.
Consequently, it also means that promotion and authority only come after the value of the salary that they will get (Lea and Webley, 2005). They will be more satisfied by obtaining cash rewards since they see the fruits of their hard work externally. There is less self-satisfaction that can be brought by the non-monetary compensation since people do not usually see it externally.ReferencesBoom, Matt. 2008.
A Century of Compensation Research. May 27, 2008, from nd.edu database.Fogleman, Sarah L. Creative Compensation. May 27, 2008, from agmanager.
info database.Lea, Stephen E. G. and P.
Webley. 2005. Money as tool, money as drug: The biological psychology of a strong incentive. May 28, 2008, from bbsonline.org database.Smith, Robert.
2005. Designer Compensation: How Important is Money, Really? May 26, 2008, from di.net database.