How to Motivate Employees Without Money: 8 Ways
Giving a bonus or raising salaries is definitely an effective, but not the only way to inspire employees to achieve great things. Let’s discuss why non-material motivation is necessary, what techniques can be used to engage employees in their work, and how to properly implement a new system.
Why Non-Material Motivation is Necessary
At first glance, it seems that money is the only thing that concerns employees. Motivation through bonuses or rewards appears to be the most effective way to support the team and drive them towards new achievements. And this is true, but only up to a certain point.
Remember Maslow’s hierarchy of needs—a framework that consists of five levels (although there are actually seven, the top three are often grouped into «Self-Actualization»). At the bottom are basic needs, and at the top are supplementary ones.
Material motivation in the form of salary increases or bonuses works when a person needs to cover basic needs: buying food, paying rent, ensuring their own safety.
When basic needs are met, the person moves up the hierarchy—they want recognition, respect, and self-realization. If a company lacks tools for non-material motivation that address these «higher» needs, no bonuses will help, and the employee is very likely to leave within 1-2 years.
Non-material motivation does not replace material motivation; it simply helps fulfill different employee needs. But why should you, as an owner or company leader, meet other people’s needs? Here are three reasons:
- To make work effective. In companies where a motivation system is well-thought-out, employees work calmly and don’t browse job listings on HH (a popular Russian job site).
- To increase business earnings. Satisfied employees easily engage in tasks and give their best, and where there is engagement, there is growth in financial performance.
- To maintain a positive team atmosphere. Sometimes you walk into an office, and the tension is so thick you can feel it. In such an environment, the only desire employees have is to leave as quickly as possible.
So, we’ve established the importance of non-material motivation. Now let’s get into the specifics—how to motivate employees for whom bonuses or salary increases are no longer enough.
Flexible Working Hours
If you look at job websites, you’ll see that flexible working hours are one of the most frequently highlighted advantages by companies. And for good reason! The ability to start the workday at a convenient time prevents life from becoming a monotonous routine of «home → work → home.»
Today, an employee might start at 11:00 AM and work until 8:00 PM because of a morning workout, and tomorrow, they might come to the office at 7:30 AM to leave early and visit relatives. Flexibility allows your employees to feel alive, and therefore, happy.
Comfortable Working Conditions
Besides flexible working hours, it’s important to create conditions where the team feels comfortable working. The scale can vary and depends on the size of the company—the number of employees, turnover, and market recognition. A small startup might provide a coffee machine and regularly replenish the snack supply; a larger company might add a relaxation room, while a large holding company might open a gym for employees.
Joint Leisure Activities
Corporate events help to bring the team together, but only if they are organized considering the participants’ interests. The format can vary—a joint party, a trip to nature, climbing a mountain, or even just a simple Friday night bar visit—all these activities help people build human relationships with each other and work more effectively.
Personal Development Path
Make the future predictable for employees—this will reduce anxiety and allow them to focus on work rather than on worries. Develop a plan for skills development and career growth with each team member, and give them an understanding of what needs to be done to get a higher position, influence salary size, or get their own office.
You can also discuss education, for example, agreeing that the company is ready to fully or partially cover the cost of necessary courses once a year.
Influence on Processes and Results
In recent years, «teal» companies, where everything is based on mutual trust and self-management within one’s areas of responsibility, have gained popularity. When every employee understands their value and significance, and when they know they can influence the company’s work, they are more easily engaged in their tasks and feel a greater sense of responsibility.