The role of non-material component in personnel motivation system

<p style="text-align: justify;"><strong>Key words: motivation, intangible/non-material incentives, stimulation, needs, motives.</strong></p><p style="text-align: justify;">In a hot job market many employers find it difficult to keep workers. Most corporate executives assume that the most reliable personnel motivation system is a combination of material and non-material components. However, the role of non-material component becomes more and more vital. It is well known that non-monetary incentives allow companies to keep highly qualified workers in the situation of small salaries when different methods of material motivation become impossible to apply.</p><p style="text-align: justify;">Working team is a group of people with different vital values and ideologies. The complexity of non-material stimulation is that its methods have to get out personally for each employee because of sometimes absolutely unpredictable needs and motives that influence people`s behavior.</p><p style="text-align: justify;"><strong>The primary aim</strong> of the study is to describe intangible incentives, affecting the HR-Department of the company &quot;ALIDI&quot; and to develop recommendations for the improvement of non-material motivation system of the analyzed department.</p><p style="text-align: justify;">To achieve the objective following <strong>tasks</strong> were performed:</p><p style="text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To clarify the concept of non-material motivation;</p><p style="text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To describe the existing system of non-material stimulation of the employees in the HR-Department of the company &quot;ALIDI&quot;;</p><p style="text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;To diagnose the motivational climate in the analyzed department;</p><p style="text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;To work out suggestions for improvement of non-material stimulation system for employers of HR-Department.</p><p style="text-align: justify;">The following <strong>hypotheses</strong> were confirmed:</p><p style="text-align: justify;">1) The enterprise &quot;ALIDI&quot; uses both material and non-material incentives affecting employees&rsquo; job satisfaction.</p><p style="text-align: justify;">2) Non-material incentives for employees to be active are an important component of loyalty formation.</p><p style="text-align: justify;">3) The system of non-material stimulation affecting the employees of the HR-Department is poorly developed. Workers are ready to change company to work for when they get better offer.</p><p style="text-align: justify;">For the hypotheses implementation and goals achievement the following methods were applied: standardized interview with the head of HR-Department, individual questionnaires of the employees, the analysis of the enterprise &quot;ALIDI&quot; documentation.</p><p style="text-align: justify;">During this investigation process we received information concerning employees working conditions, needs and motives that influence people`s behavior, existing corporate culture and organizational leadership style, system of training and professional employees&rsquo; development.</p><p style="text-align: justify;">According to the results of the study there are significant reserves in the area of improving non-material motivation system for the staff of HR-Department.</p><p style="text-align: justify;">The following measures were offered to improve non-material motivation system of the employees of HR-Department:</p><p style="margin-left: 54pt; text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Creating professional contests;</p><p style="margin-left: 54pt; text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Using mentoring system;</p><p style="margin-left: 54pt; text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Developing a set of trainings;</p><p style="margin-left: 54pt; text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Providing the opportunities for rotation and relocation</p><p style="margin-left: 54pt; text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Using seminars as a meetings of employees from different branches;</p><p style="margin-left: 54pt; text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Awarding honorary titles for special contribution;</p><p style="margin-left: 54pt; text-align: justify;">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipping Intranet portal with materials for self-study.</p><p style="text-align: justify;">For the changes implementation a program was developed. This program includes a complex of steps, starting with the decision on improving the system to its full implementation.</p><p style="text-align: justify;">The program steps were consistently reflected in the Gantt chart which shows the possible stages location in time and the anticipated results of the program implementation in the enterprise &quot;ALIDI&quot;.</p><p style="text-align: justify;">The results of the project will have a practical value for the company. These findings will be applied in the company as a part of future program of organizational changes. Putting developed measures into practice will help to increase employees` loyalty degree and enhance workers&rsquo; productivity.</p>