The Importance Of Non-Financial Rewards For Employee Job Satisfaction In Human Resource Management: A Case Study Of MTN

Company Background

“Human Resource Management (HRM)” is utilized in order to portray any formal frameworks that are contrived for administering the individuals within an organization (Albrecht et al., 2015). HRM is the level inside the affiliations that focuses on the listing, association, and directing for the public’s who work together in an company or organization (Beardwell & Thompson, 2014). Numerous Human Resource officers are provided with the duty of the improvement of the association (Brewster et al., 2016). The officers visit various coaches and the individuals from employee groups that are responsible for addressing the humanitarian giving, various representative exercises for engagement, and also the occasions that include the families of the workers (Marchington et al., 2016). Human Resource Managers should provide the employees with incentives so that they are motivated and they have the will to work (Storey, 2014). To be viable, motivating forces should be obviously characterized and be considered an extremely reasonable and profitable reward. Motivator programs rouse workers to push and test themselves to accomplish higher degrees of efficiency (Imas, 2014). At the point when motivator designs are set up, workers perceive that huge exertion for their benefit will be recognized and remunerated (Royer, Stehr & Sydney, 2015).

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The chosen organization in this paper is MTN. MTN is a “telecommunication” and mobile network company that is based at South Africa and operates multi-nationally. It was known as M-Cell and the full form of the name is Mobile telecommunication network. It has its operation in a number of European, African and Asian nations. The “Chief Executive Officer of the company is presently Rob Shuter who has replaced Sifiso Dabengwa. The board of directors heads the organizational structure. Just below the board of directors are the empowered “MTN group Risk Management and Corporate Governance Committee” which has a officer dedicated for whole time for managing group risk. In the same level works the operational board under which are the “operational CEOs” who head various departments of the company. The vision statement of the company states that it aims to be the leader in delivery of a digital world which is bold and new (Mtn.com, 2018). The mission of the company is to make its customers lives “brighter (Mtn.com, 2018). The HR of the group’s head office at South Africa is Nhlanhla Qwabe who will be interviewed later in this paper.

According to the article, “A literature analysis on the importance of non-financial rewards for employee’s job satisfaction. Abasyn Journal of Social Sciences”, the managers of the organizations believe that incentives and benefits lead to a greater production of work (Haider et al., 2015). In the world that is perfect, the employees will arrive to their workplace with a happy face and a bright smile. They may also be more productive and engage with the colleagues. Unfortunately, the truth is that many employees are disengaged or bored. Around one-third of the employees in an organization are actively engaged with the work that they are doing.

Literature Review

Fortunately, the employers can utilize focused on motivating forces and advantages to enhance worker satisfaction and engagement in many working environments. Alongside projects to lessen pressure and poor administration practices, impetuses and advantages can be utilized to help worker resolve and engagement levels at work. Human Resource offices have dynamically developed throughout the years to grow their parts and incorporate duties, for example, overseeing worker pay and advantages. As organizations proceed to develop and build up, it is critical to see how the advantage enlistment process influences the Human Resource supervisors, and what issues might be faced to end up noticeably more successful in the operations. Almost all the employees deserve rewards and they expect it from the organizations. The authors of this article stated that the representative advantage programs have more noteworthy effect on work?motivation than on profitability; fiscal advantage programs are most profoundly esteemed by the two administrators and specialists. There is a psychological and mental gap between the employer and employed on importance of the worker benefit programs or sexual orientations, which are different, have variety of advantage requests. Members with various positions and instruction levels see distinctive worker benefit effects; and the incentive offers have more noteworthy effect on the work execution. Representative advantages incorporates profits by different sources which include therapeutic protection, disaster protection, retirement benefits, incidental advantages, paid time off, government managed savings and other particular advantages (Bal& De Lange, 2015). Frequently the representatives working under the particular imperatives and meeting due dates previously or whose work is being performed with full concentration or devotion are the ones who are capable of getting the advantages. In a few organizations, employee benefits have become mandatory as it not only helps them grow but also helps in a better productivity.

According to the authors of the article, “The Impacts of Employee Benefits, Procedural Justice, and Managerial Trustworthiness on Work Attitudes: Integrated Understanding Based on Social Exchange Theory”, the current open administration literature accentuated impact of “human asset administration (HRM)” approaches, including conventional advantages, accommodating advantages for families, process equity, administrative dependability on work dispositions (Ko & Hur, 2014). There has been hardly any research conducted on the public organizations on the effects of each of the HRM approaches. This article gives an incorporated comprehension of the effects of HRM strategies utilizing social trade hypothesis. The effects of the procedural judgment and the honesty of managers among the worker incentives or the attitude and behavior at work are also analyzed. Authors further locate that two kinds of representative advantages, procedural equity, and administrative reliability are emphatically identified with work fulfillment, while accommodating the family advantages, administrative dependability, and the procedural equity are contrarily connected with the goals(Nie et al., 2015). The companies should recognize the efforts of the employees and many workers need a virtual pat in order to keep working properly. They need motivation to meet the goals and targets that the company has. This is one of the main reasons as to why the employers choose implementing the incentive programs. The incentive programs will help in keeping the staff engaged and they will work hard in return. Employers can reward gift cards, free lunch, and extra time off to the employees. These will not only help the employees to stay motivated but also it can prove extremely beneficial for the business in the future. Many organizations are concerned about the budget and hence they may not be able to provide the monetary rewards (Long & Perumal, 2014). In these cases, the organizations should opt for the various kinds of flexible benefits like the early finishes, the dress-down days, trophies, recognitions, extended lunches or even the name of the employees of the fame board of the organization. For a number of employees, monetary rewards do not matter as much as the rewards or recognitions that they get from the organization. These kinds of employees are fond of the public recognition (Anitha,2014). They find recognitions more important and interesting in comparison to cash.

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Interview Results

The reasons behind the disengagement of the employees are numerous. These reasons include-

  • The poor working conditions or occupations that place excessively strain on representatives’ physical and mental prosperity.
  • Low pay rates and constrained representative advantage programs that do not offer much as far as pay.
  • The failure to give important errands, remunerating ventures, or upward versatility in professions.
  • Long haul issues with poor administration rehearses and other negative corporate culture standards.
  • Engagement – Determining how dedicated workers are to the organization and making measures to build the power levels of people to see the association between their activities and the organization goals.
  • Enablement – Creating the open door for representatives to work up to their full limit while encountering the valuation for administration, regardless of whether there are restrains on spending plans and HR.
  • Vitality – Developing a corporate culture where representative prosperity is advanced and drilled all the time. Building programs for diminishing pressure and enhancing work life adjust.

Representative inspiration is referred to the responsibility, level of vitality, and imagination that the laborers of an organization convey to the respective occupations. It does not matter whether the economy is contracting or developing, discovering ways to inspire representatives is concern of the administration (Cooper-Thomas et al., 2014). Worker inspiration can be risky for private ventures. The employer has invested years in constructing an organization. This is why he comprehends; it is difficult to assign important significant duties to others. Visionaries of businesses should be knowledgeable of the traps: the effects of low desire of the workers on independent companies can be fatal. Such situations may create less concern, lack of interaction (Slack, Corlett & Morris, 2015). Such dispositions can cumulate into emergencies.

According to the authors of the article, “Show them the money? The role of pay, managerial need support, and justice in a self?determination theory model of intrinsic work motivation, Scandinavian journal of psychology”, the independent venture can provide a climate that is perfect to worker inspiration. The representatives view the after effects of the commitments that they have made specifically (Olafsen et al., 2015). A working and inspired work drive helps in liberating the employer from the daily tasks for considering the long haul of advancement. Moreover, passionate and substantial reward can mean the maintenance of attractive representatives. The employees flourish in innovative workplaces and they need to have an effect. One method to engage with worker inspiration is to see “include ins” to an individua’s activity as important features in increasing the execution of the work. Unending blends of worker benefits, for example, social insurance, life coverage, benefit sharing, representative stock possession designs, practice offices, sponsored dinner designs, and that is just the beginning—have been used by the organizations in the endeavors for keeping up glad workers in the conviction that the cheerful representatives are roused workers.

Numerous cutting edge scholars, suggest that the motivation an employee feels towards his activity has nothing to do with the material prizes. Concentrates have demonstrated since the 1950s, that exceedingly divided and improved occupations caused by the representative resolve from lower level (Nosenzo, 2016). Divergent results of the “low representative inspiration” include “non-appearance” and high turnover, which are costly for the company. Subsequently, the “work development” movements have begun to manifest in the significant company since the year of 1950s. While wording changes, the principles of representative inspiration remain moderately unchanged from the various discoveries over 50 years back. There are various methods for inspiring representatives presently, because there are a number of organizations working in same condition. The “best worker inspiration” efforts will focus on what the members esteem to be important. It is possible that employees inside a similar division of a similar company will have variant sparks. A large number of associations conclude that the flexibility in the work strategy and the reward frameworks has caused the expansion of mortality of the employees with the company, along with better spirit and enhanced efficiency. The various benefits that can be provided to the employees in order to motivate them are numerous.

Discussion

The total time spent in work by the American specialists is on the rise, a number of families have around two people who are adult working within those extra hours. Under these conditions, a large number of specialists are thinking about the process they will balance their work and personal life. This happens regularly at work and may decrease a worker’s profitability and assurance. Companies that have started proper employee plans have advanced, and pushed the employees whose profitability has advanced and increased. Projects fusing “strategic scheduling” or consolidated busy weeks is effective.

For the advancement of all the elective inspirations, money still involves a noteworthy place of helpers. The exact sharing of the company’s benefits extends motivator to workers to give a quality thing, play out quality governance, or enhance the type of a process inside the organization. What benefits the company, helps the representatives as well. Monetary and different awards are provided to the representatives for establishing the “process-enhancing” thoughts and to support the efficacy and lessen lack of attendance. Money is viable when it is straightforwardly stacked to the comprehension or accomplishments of the representatives. Overall, the impacts of non-fiscal inspirations are fleeting. Further, the money related motivators could demonstrate the counterproductive if they are not made accessible to the individuals from the organization.

The Human Resource Manager of MTN telecom company was interviewed. MTN is a telecom company that is based in South Africa and operates in a number of countries. The previous Human Resource manager was Themba Nyathi who was replaced recently by Nhlanhla Qwabe. Qwabe is a dynamic person who has worked in various companies including “Aspen Pharmacare” and “Nike South Africa”.

Quabe in an open and frank interview gave details about the HR policy of MTN and the various benefits it provides to its employees which include non monetary ones.. According to him, employee benefits and incentives are provided to all the employees so that the company gets a better productivity. There were certain issues that the company faced when providing the benefits. The company provides various benefits like medical insurance, retirement plans, and life insurance, along with the financial benefits like bonuses, profit sharing and stock options. The employee benefit and incentives programs are managed legally. The benefits may affect the expenses of the business that include hiring staff for managing the benefits or making payment outside the benefit plans. Giving the employees leave benefits may prove to be harmful for the business especially at times when the workload is heavy. The HR manager also mentioned that the benefits and incentives diminished the performance of the employees. According to various other studies, as the rewards started increasing, the performance of the employees started to decrease. When employees start focusing on the rewards, the results may fall.

Conclusion

Motivating force is the demonstration or the guarantee for an activity that is worth the praise. It is referred to a boost to an activity that is more prominent (Silverman et al., 2016). It helps to imply compensation or an advantage to an employee in acceptance of the accomplishment of a better work (Alexander & Organ, 2015). Motivations help in giving an energy to the representatives for a better execution and performance. It is a characteristic thing that cannot be demonstrated without any reason. In this manner, an expectation for any reward is the best and a capable motivator to propel representatives. Other than financial incentives, there are various other boosts, which are responsible for driving a man better. This will help in incorporating the employment fulfillment work advancement, professional stability, and pride of achievement. Thus, the motivating forces can infrequently work to achieve the objectives (Welpe et al., 2015). The reasons behind motivating an employee are:

  • To expand the profitability
  • To drive or stir a jolt in the work
  • To improve the responsibility in all the work executions
  • To mentally fulfill employees’ needs and demands which helps in work fulfillment
  • To shape the standpoint or the conduct of the employee towards work
  • To provide energy and eagerness towards work
  • To understand the goals of the organization and to work accordingly to achieve it.

Fiscal benefits: The benefits that help in fulfilling the subordinates by providing them compensate as far as rupees, are referred to as fiscal motivations (Shields et al., 2015). Cash is useful for fulfilling the various social needs by having the different material things. Cash helps in fulfilling the mental needs as well as the social needs and security. Along these lines, in numerous production lines, different wage designs and plans are familiar with the rouse and animate the general employees for work.

Non-fiscal motivations: Besides the money related motivators, there are some non-monetary impetuses, which can help to fulfill the sense of self, and self-realization needs of workers. The motivations, which cannot be estimated in cash, come under the classification of “Non-monetary motivators. An administrator may make use of the non-monetary incentives so that the mental needs of the employees are fulfilled (Certo, 2015). Non-budgetary motivators are of the following types:-

Administration Security: The security of the job is an impetus, which is known to provide inspiration to the representatives. When an employee knows that his activity is secured, he will put in the greatest efforts to accomplish the destinations of the organization (Malik et al., 2015). This helps because the employee gives his complete effort to the organization.

Acclaim or acknowledgment: The acclaim or acknowledgment is a non-budgetary impetus, which helps in fulfilling the conscience needs of the workers (Larkin, 2014). The workers tend to react best to the acclaims and it provides a boost to the way they work.

Proposal plot: The association should anticipate taking recommendations and welcoming proposals from the employees. This teaches cooperation among the workers. This is possible by distributing various articles that are composed by the representatives for enhancing the workplace. These can be issued in various magazines of the company. This is extremely useful to rouse the employees so that they feel important and can look for the inventive techniques. These techniques will further help in the work strategies.

Occupation advancement: Job enhancement is a non-monetary motivation. The activity of an employee can improve. This should be possible by increasing the duties, giving him an important assignment, expanding the nature and the substance of the task (Lazaroiu, 2015).

Advancement openings: Promotion is a successful device to build the soul of an employee. The representatives are given instances for the development & progression, they are satisfied and fulfilled and become more devoted towards the association. When employees are promoted, they feel motivated and they are willing to give their hundred percent to the company. They also perform in a manner, which helps the company to achieve the goals, and targets that it has.

Non-monetary incentives along with the monetary incentives help in providing the employees the energy and the inspiration of working so that they can successfully help in the growth of the organization as well.

Positive motivators are those incentives which help in giving a confirmation to satisfying all the requirements and needs (Terera & Ngirande, 2014). Positive motivators are provided to complete the mental prerequisites of the workers.

Negative impetuses refer to the incentives whose primary intention is to adjust the defaults or oversights of the workers. The design is aimed to correct oversights by remembering the objective, for getting powerful outcomes (Blattman & Ratson, 2015). Negative motivating force depends on the situation when the positive incentives do not work and the representatives should be given a mental set back. It is negative in nature. Negative incentives include exchange, downgrade, fines, and punishments.

Incentive plans are made for reason of encouraging the representatives to inspire themselves to accomplish higher levels. Motivator designs that reward the representatives for achieving the objectives provide support and give the staff members motivation to work. The Motivation designs fixing to gathering activities or cooperation can help in the work that are community oriented, which in turn, endeavors in the business. The employees who are working in the groups, who depend on the others’ profitability for getting rewards or an honor may can each other for performing his best (McDermott et al., 2017).Motivator designs can raise the confidence and increment the work fulfillment within an organization. The representatives view a connection between the work exertion and the winning potential. This can support the business, improve the organization’s notoriety, and enhance consumer loyalty. Enhanced levels of administration can support positive verbal publicizing and referral business. For an incentive program to be viable, the targets and objectives should be characterized for the staff members (Rensick, Aizen&Shpeen, 2017). The workload should be conveyed, or it can create hatred among the employees.

By reviewing the articles and analyzing the various aspects of employee incentives and its positive and negative aspects it can be well said that most of the employees expect both monetary and non-monetary benefits from the work place.

Many studies have discovered that the top inspirations of specialists are non-financial. Money related incentives are inadequate sparks. Directors who are responsible for perceiving the “little wins” of employees, advance conditions of participation, and treat the employees with behavioral decency and regard, will see that the workers are even more enthusiastic (Sutton, 2015). The highest rewards, for example, are the certificates of honor and less time from the job, sense of pride and improved individual satisfaction. A genuine acclaim and various individual signals are stronger and more traditional than honors of money only. In the end, programs that ensure financial reward structure and also expands the inbuilt, self-completing requirements are the strongest inspiration of representatives.

According to a recent study that has been conducted by the Genesis Associates, which is a firm based in the United Kingdom, discovered that around eighty-five percent of the workers are more motivated and wanted to work more when they were provided with incentives. The type of incentives that pushed the employees to work harder included the monetary rewards, as money is the best motivator, free vacations and extra time off. Other interesting and popular rewards that motivate the employees up to a certain extent include meals, drinks or finishing the workday early

Most of the part of the day of an employee is spent in the work place. Therefore a person who is dedicating most of the part of their life in a particular place would want some kind of benefits from there. Monetary benefits are the chief driving factor of an employee to work. However noon monetary benefits are the up lifters that help the employees to keep a mental state that is driven towards their workplace. This increases productivity and helps in making a better organizational culture as well. The motivations, which cannot be estimated in cash, come under the classification of “Non-monetary motivators. An administrator may make use of the non-monetary incentives so that the mental needs of the employees are fulfilled (Certo, 2015). Motivations help in giving an energy to the representatives for a better execution and performance. It is a characteristic thing that cannot be demonstrated without any reason. In this manner, an expectation for any reward is the best and a capable motivator to propel representatives.

Human resource is the pillar on which one organization runs its daily operations. It may be the fuel of the on which the wheels of the company runs. However, without proper incentives and motivation the human resource is not effective enough. The articles evaluated above reiterated the fact that incentives are very important and necessary factor for employee motivation. Apart from financial incentives there are other forms of incentives including holidays, vacations, gifts, rewards and recognition, promotion and similar other driving factors. The most effective incentive is the monetary incentives. However promotions and rewards and recognitions play very important role in psychological boosting of the employee morale. The HR of MTN also confirmed how health benefits, rewards and similar other incentives help in employee motivation and retention.

Conclusion

There are various issues that the incentives and benefits can have on the organization but it was also seen that the incentives are the main reason behind the productivity of an employee. When the employees are given early leaves or they are called for a lunch, they feel motivated and tend to give their hundred percent to the tasks. On the other hand, employees may stop working or stop being productive if too many benefits are provided to them every month. The intrinsic motivation helps an employee to remain focused on the goals and objectives of the organization. They remain engaged despite the challenges that they face. It is true that the incentives tend to make the employees less creative. Rewards may narrow down the focus of a person and can make them less effective than what they normally are. Incentives also tend to remove a person’s ability to take decisions based on the moral values and interests. Overall, it is true that the incentives are necessary to bring out the best in the employees, but also, providing them with numerous benefits can also ruin their creativity and focus.

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