Enhancing Employee Performance through Monetary Incentives

Abstract

Monetary incentives lead a parent role of an employee to focus on their future step, understand their responsibility in the organization, and understand their benefit also this system changes staff work morale so generally thorough the way of financial reward enhancing employee performance .Monetary incentives play a important role in every employee working under any organization because he is getting an extra financial support from the organization were it will lead to work hard for the organization  salaries and bonuses are part of the monetary incentives which motivate the employees in addition to some non -monetary incentives such as free food, commute taken care of, and paid vacations with family as well as healthcare options etc. Indeed, in the United States, and in some Western countries where healthcare is not provided by the government, many workers and employees in businesses often join to the inducement of employer provided health insurance packages In addition, the more senior you are in the organizational hierarchy, the better are your chances to avail of incentives such as ESOPs or Employee Stock Option Plans, paid vacations, chauffeur driven cars, as well as plush accommodation that is paid for by their employers. Apart from this, in many corporates, midlevel and junior level employees to receive some of these benefits based on their performance. In other words, these incentives are often used to enhance employee performance in organizations. Along with this, the organization also gets the benefit of suggestions in new thinking. It is true that efforts should be made to make the employees mentally strong for the development of the organization, but they should also get their remuneration in the form of money. The main objective is to analyze the effect of monetary and nonmonetary rewards toward employees’ performance.