Aiming at motivating workers, there have been two different kinds of motivation named financial motivation and non-financial motivation methods for companies to use. Motivation is necessary for companies’ operations because a lack of motivation in the short run will result in the reduction of effort and disappearance of commitment (Hall, D et al, 2008). Motivation can be defined as a desire that employees have to do their jobs better. There are some conventional theories of motivation. For instance, Taylor’s Scientific Management puts forward ‘a fair day’s pay for a fair day’s work’, which is one method of financial motivation theories. The other two examples are Herzberg’s two-factor theory and Maslow’s hierarchy of needs, which include both financial and non-financial methods. To be critical, non-financial and financial have both benefits and weakness, and they are suitable for different people in work places. For instance, blue collar workers and white collar workers may be motivated in different ways. In fact, financial methods indeed have significant impacts in motivation. Be similar to them, non-financial methods have functional results in motivating employees as well, not as people’s general thoughts that non-financial is less practical.
Firstly, financial motivators are efficient because financial methods are major about money that can also be explained as financial rewards to employees, which can satisfy the basic needs of workers, such as salaries and wages, and different types of payment which involve performance related pay, profit sharing. As a successful example of efficient financial methods, Tesco expended out £50 million to just over 100,000 of its employees after holding £38 million-worth of shares on their profits for three years in its profit-share scheme in 2002 (Tutor2U, n.d). The great example of financial methods theory for motivation is Taylor’s, a fair day’s pay for a fair day’s work. According to Maslow’s hierarchy of needs (Hall, D et al, 2008), money is a fundamental need which belongs to physiological needs for workforce. In addition, Maslow (Hall, D et al, 2008) had divided the needs of staff into five parts, for example, the physiological needs mentioned before is the basis, and the highest level of needs is self-actualization. Furthermore, in research by Hays in 2006, 42% of employees surveyed said they preferred financial rewards, while 9% focused more on non-financial rewards. “This shows a significant increase in the number of people preferring cash rewards” (Hays, 2009). These are the reasons why raising the income may motivate people to become more efficient than other methods.