Editing Incentive (section)

==Non-monetary incentives==
Non-monetary incentives can act as an impactful reward system to employees with superior performance that is independent to predetermined targets.<ref>{{Cite journal |last1=Hooi |first1=L. W. |last2=Abdullah |first2=A. A. |date=2013 |title=Relationships of Non-Monetary Incentives, Job Satisfaction and Employee Job Performance |journal=International Review of Management and Business Research |volume=2 |issue=4 |pages=1085–1091}}</ref> They refer to the use of rewards or benefits that are not directly related to money or financial compensation to motivate individuals to perform specific actions or achieve desired outcomes <ref name="Lefebvre e0227360">{{Cite journal |last1=Lefebvre |first1=Mathieu |last2=Stenger |first2=Anne |date=2020-01-17 |title=Short- & long-term effects of monetary and non-monetary incentives to cooperate in public good games: An experiment |journal=PLOS ONE |volume=15 |issue=1 |pages=e0227360 |doi=10.1371/journal.pone.0227360 |pmid=31951622 |issn=1932-6203|pmc=6968839 |doi-access=free |bibcode=2020PLoSO..1527360L }}</ref>

The use of non-monetary incentives is based on the recognition that individuals are motivated by a range of factors beyond financial rewards and acts as a reinforcement to encourage work engagement and productivity.<ref name=":15">{{Cite journal |last=Burgess |first=S. |date=2003-06-01 |title=The Role of Incentives in the Public Sector: Issues and Evidence |journal=Oxford Review of Economic Policy |volume=19 |issue=2 |pages=285–300 |doi=10.1093/oxrep/19.2.285 |issn=1460-2121}}</ref> Some examples of these incentives include extra paid holidays, recognition, praise, opportunity for personal or professional growth, gifts, family benefits or even work-based perks such as more interesting projects or work.

Individual may be motivated by a sense of purpose, a desire for personal fulfillment or growth, a need for social recognition or status, or other non-financial factors. By providing these types of incentives tend to boost employees' job satisfaction as they feel more appreciated for their efforts and lower turnover rates. Compared to monetary incentives, studies have shown that employees find non-monetary incentives more memorable as they are separated from normal pay and hence are more distinguishable.<ref name=":1">{{Cite journal |last1=Cassar |first1=Lea |last2=Meier |first2=Stephan |date=Summer 2018 |title=Nonmonetary Incentives and the Implications of Work as a Source of Meaning |journal=Journal of Economic Perspectives |language=en |volume=32 |issue=3 |pages=215–238 |doi=10.1257/jep.32.3.215 |s2cid=52834710 |issn=0895-3309 |doi-access=free}}</ref> In addition, non-monetary incentives are known to promote long-term commitment and loyalty among employees<ref name="Lefebvre e0227360"/> Effective use of non-monetary incentives can positively influence employees’ perception of the company's image as well as increase the morale of firms.<ref>{{Cite journal |last1=Depedri |first1=Sara |last2=Tortia |first2=Ermanno C. |last3=Carpita |first3=Maurizio |date=2010 |title=Incentives, Job Satisfaction and Performance: Empirical Evidence in Italian Social Enterprises |journal=Euricse Working Papers |at=N.012 {{!}} 10 |ssrn=1698598}}</ref> Compared to monetary incentives, non-monetary incentives hold a stronger and longer-lasting influence on employees’ motivation as it results in a higher utility level.<ref>{{Cite journal |last=Jeffrey |first=S. |date=2004 |title=The benefits of tangible non-monetary incentives |journal=University of Chicago |pages=702–77}}</ref> Employees with higher job satisfaction and morale were found to have better overall performance, contribution and hence higher productivity.<ref name=":14" /> Another advantage of non-monetary incentives that it allows a positive work culture that emphasizes cooperation, teamwork, and social responsibility.

However, non-monetary incentives also have some limitations and undesirable consequence.<ref name="Lefebvre e0227360"/>  For instance, it can be less effective in motivating individuals who are primarily motivated by monetary incentives such as financial rewards. This may be especially true for individuals who are in low-paying jobs or who face significant financial stress or insecurity. Another concern is that non-monetary incentives may be more difficult to quantify and evaluate than monetary incentives.<ref name="Lefebvre e0227360"/> This may create several challenges for a firm or organisation to design and implement effective incentive programs that are aligned with their goals and objectives.

Overall, both monetary and non-monetary incentives are important tools to influence individual and organizational behavior. While monetary incentives may be more effective for some individuals or in some contexts, non-monetary incentives can be equally effective in promoting long-term commitment, fostering a positive work culture, and promoting social responsibility. Ultimately, the most effective incentive programs will likely incorporate a combination of monetary and non-monetary incentives to create a positive and comprehensive approach to motivation and performance.