Antecedentes sobre la didáctica de la traducción en general

What are nonfinancial incentives and reward schemes and what types of incentive options fall within this category?

Rewarding, motivating and attracting the right employees, does not always have to be expensive or monetary (Kohn, 1993; INC, 2010). Many employees prefer positive recognition and other non-financial incentives above financial incentives and rewards (Hull, 2013). According to Kohn (1993) when employees were asked to rank their preferences, financial rewards were ranked fifth and sixth after non-financial rewards.

Erbasi & Arat (2012) identify some commonly used non-financial incentives such as job enrichment, better working atmosphere in terms of the physical and social environment and holiday opportunities. Six of the most effective non-financial incentives are:

 Positive recognition especially by the client and other colleagues;

 Opportunities to sit on special panels;

 Opportunities to increase skills;

 Additional training opportunities;

 Conference options; and

 Thanks on a regular basis (INC, 2010).

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There are many other forms of non-financial incentives, which can be very effective such as social and ethical incentives and promotion opportunities. Socially mediated incentives and motivations can play an important role in altering employee behavior (Bruggen & Moers, 2007).

King (2002) suggests that in an audit setting, the self-serving bias of the auditors were neutralized when they were exposed to social pressures in order to conform to group norms. In other words, ethical concerns (individual norms) and social incentives (group norms) reinforce each other and can make a significant contribution to any incentive scheme.

Furthermore, promotion incentives can be very effective and are less costly than financial rewards (Baker, Jensen, & Murphy, 1987). Promotion incentives serve two main purposes:

i. Individuals differ in their skills and abilities, jobs differ in the demands they place on individuals, and promotions are a way to match individuals to jobs for which they are best suited.

ii. To provide lower level employees with incentives that value the pay and prestige associated with a higher rank in the organization.

Non-financial incentive schemes can take various forms, for example:

 The opportunity to participate in management tasks, promotion opportunities, holiday opportunities and job enrichment opportunities (Erbasi & Arat, 2012);

 Perks at the office such as half days, casual days or social events and activities (Hull, 2013);

 Amenities such as a gym, cafeteria or day-care facility (Hull, 2013);

 Education programs where employees can engage in further skill development (Hull, 2013);

 Positive recognition such as staff awards or celebrations (Hull, 2013), praise from superiors’ and co-workers and feelings of self-esteem that come from superior achievement and recognition (Baker, Jensen, & Murphy, 1987).

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Benefits and negative consequences of implementing financial incentive and reward schemes

Self-determination theory (SDT) suggests that employees who feel that their personal values are aligned with the organization will perform better. Further, if they feel a strong connection with other people and their environment they will perform better (Delves, 2011). According to Mason and Watts (2010) when it is possible to use non-financial incentive and rewards in an organization to enhance employee’s intrinsic motivation, the quality of the work will be as good, if not better than if they made use of financial rewards.

In some cases where employees are offered non-financial incentives such as a flexible working schedule to allow them to pick up their kids, there may be costs for the organization. By allowing certain employees to work on their own schedule and at their own work pace, means the rest of the organization needs to work around that employee’s schedule and thus can cause significant delays, communication problems and conflicts within the organization (Wharton University of Pennsylvania, 2011). Another negative consequence is that non-financial incentives are more effective in the long run and thus short-term goals and objectives may suffer as a result. Lastly, there is always a risk of creating feelings of inequality, envy and jealousy when employees are offered different incentives than others based on their personal preferences.

2.3.3. Part II: Summary

Incentive and reward schemes can play many roles in an organization including: motivating employees to perform better or to alter behavior, rewarding employees for good performance or target achievement, improving employee productivity and job satisfaction and creating a happy and comfortable work environment. A company’s success can be impacted by these schemes and thus it is important for all managers to understand these effects and manage them.

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The two most commonly used incentive and reward schemes are financial and non-financial.

Each of these schemes has its own benefits and negative consequences:

 Financial incentives such as bonuses, performance-based pay and profit sharing can increase efforts, encourage target achievement and act as a good reward, but these incentives can also overwhelm intrinsic motivation, emphases tasks which allow them to receive the reward while ignoring other tasks and result in only short-term behavior changes.

 Non-financial incentives such as flexible working arrangements, days off and additional training opportunities can make an employee feel appreciated and unique, allow a sense of mastery or achievement and allow them to feel that their personal values are aligned with those of the organization. These incentives can however, cause resentment as there may be individual arrangements, cause co-ordination issues and may not be effective in the short-term.

It is also important to consider that the preferences for different incentive and reward schemes may be influenced by the industry or occupation that an employee chooses. Bonner and Sprinkle (2002) suggest that employees who are affected and use accounting information more commonly prefer financial incentives for motivating and increasing their performance. The next section outlines the research objective, questions and research gap.