In steady running companies, employees need motivation to continue with their career and make their companies' profit become the maximum. According to Hall (2008), motivation can be categorized into two groups: content theories and process theories of motivation. The first theory, content theories, included the theories of Maslow, McGregor, McClelland and Herzberg, is mainly talk about the financial motivation methods for the employees. The other one, process theories are influenced of Vroom, Porter, Lawler and Adams, is concentrated on the non-financial motivation methods. Therefore, they are two main ways to encourage the employees to work. However, de-motivated workforce will become negative parts of companies and may reduce the quality of work. Money is one of motivator, nevertheless, motivator included different areas which depend on different people's needs. For those reasons, it is necessary for a company to set up logical financial and non-financial motivation methods in order to avoid de-motivation and find suitable solutions.
Financial motivation is an important motivator for employees to make high quality of work, and this mainly satisfy the employees' physical needs such as food, safety and rest. In 1899, Taylor said "A fair day's pay for a fair day's work" (Hall, 2008, 375), some employees need to be encouraged and given bonus salaries or wages to have motivation. Hence, to have the bonus salaries or wages' premise is to have a fair day's work. Money is one of the basic things to people earn their living in the society, however, the financial motivation can make employees have energy to work hard on their careers. For needs of people, Maslow set up the hierarchy of needs which can help companies and managers to do a suitable classification of encouragement for the employees (Simons, 1987). According to Figure 1 (Pires, 2009), it clearly shows that financial motivation can satisfied the physical needs of the employees which are in the bottom of the pyramid, and this kind of motivation can encourage them in a practical way. Nevertheless, poor pay may lead to employees being dissatisfied, which can make other non-financial rewards less effective in motivating them (Hall, 2008). From the above, financial motivation is more suitable to use in short term because it can satisfy the current needs of the employees such as money, food, water.
Maslow's hierarchy of needs diagram
Figure 1 (Pires, 2009)
However, non-financial motivation can satisfy the employees' psychological needs which include love and belonging, esteem needs and self-actualisation (Hall, 2008), and these are at the top of the Maslow's hierarchy diagram. Non-financial motivation methods encourage people mainly without using money. For instance, job enrichment attempts to give greater responsibility which can encourage employees to develop their skills (Hall,2008), the company could give the chances for the employees to go aboard to study or choose the suitable working environment as they want instead of just giving them bonus salaries or wages. Hence, this kind of motivation can be used for the long-term effect which can make the employees in the company have more challenges in their work and feel important to the company. The non-financial motivation method can become a long-term effect because it can make employees feel confidence and be trusted which can satisfy their psychological needs. In this way, employees can be more motivated than just given them money. Hence, non-financial motivation can be used at the long-term effect if companies have a strong need of the employees and hope they can work for a long time.
Although financial and non-financial motivation methods can earn profits to the companies by encouragement of employees, that may also bring some de-motivating effects if they are not used in a logical way. For example, bonus salaries or wages cannot satisfy the needs of employees, or the benefits given by the companies not fair enough which may make the employees feel negative. Furthermore, if the financial motivations are not used in the right way, it will make terrible mistakes with the company's total capital. For instance, ABC News Medical Unit (2009) reported that Wal-Mart encouraged sick employees to work during the time H1N1 flu was prevailing in USA and given them bonus salaries, which may lead to a large number of people to be contagious to flu. Therefore, the company ignored the problems out of finance may lead to some of the chain reaction which might cause influence to the company. Financial motivation methods may also have the disadvantage of overestimating employees, which should not be ignored and managers need to solve the problems immediately. If non-financial motivation is overused, companies may face a human resource problem such as do not have enough basic workers and have too many managers which may made the company to lay off employees. De-motivation will threaten the company and make the total revenue decrease.
Hence, it is emergently to solve de-motivation problems in companies. Accel-team (2010) said that understanding motivation is to understand human nature itself, which may be simple but also may be complicated. Therefore, to know what the employee needs, the managers of the company should do some research about the employees and make the most logical plan for their motivation method. Based on Herzberg's theories, it is necessary to create satisfiers which are different from high salaries (thetimes100, n. d.). For example, when an employee does not had any needs or ambitions, it is hard to make he or she have motivation to work, if companies have a number of employees who do not have motivation, that will be hard to earn more profit for compines. Stockley (2005) said that it is very important to have a well managed remuneration system in place, nevertheless, fair and reasonable rewards are essential and very important for strong morale. In the process of solving motivation problems, managers play an important part. In order to run the company better and keep the profit growing, to notice what employees need is necessary. In the company, financial motivation can be one of the elements of the encouragement strategy, but it can not be the only way and it is suitable to use in the short-term. Setting up a logical management of motivation can make the companies run steadier.
In conclusion, financial and non-financial motivation methods can help a lot with motivating the employees in companies which can develop total revenue. However, if the motivating method cannot be used in the logical way, that may cause a serious problem with the finance and human resource in companies. In my opinion, managers in companies need to have a clear plan of the motivation methods and sort out the financial and non-financial motivation into different levels, that can balanced the income and outcome of the capital in the companies, it also can make the employees choose different kinds of motivation which can satisfy their different areas of needs. Furthermore, with a logical management of motivation methods that can make the employees made high quality work which can bring benefits for both companies and the employees themselves. Moreover, the managers can creative the motivation for the employees then they will have goal to work on. A motivated worker can feel fulfilled when they are working hard, that is important for both the companies and himself or herself. Consequently, having a logical plan for financial and non-financial motivation can develop companies' and the employees' abilities which can get the both sides.