What Non-Financial Incentives Motivate Nonprofit Employees?

When you work for a nonprofit, you operate with tight budgets and constantly increasing annual fundraising goals. The pressure is always there to perform and exceed financial and non-financial goals. While some employees only consider wages when working for a nonprofit, others consider non-financial incentives. As someone in mission-driven leadership, it is your responsibility to develop ways to attract and retain your employees. This goal becomes harder each year due to inflation and budgetary pressures.

I have worked for The Salvation Army, Indiana Division, for 12 years. I took a pay cut to do so because I felt I could be an asset to the organization. Why would I do this? I am mission-oriented and feel compelled to help those in our community who would benefit from my time, talent and treasure.

The culture and environment of this organization are a great fit for me. Officers, staff, employees, board members, volunteers, donors, the development team, and others care deeply about the mission and the team. My supervisor has worked here for 37 years and is amazing. She is a servant leader and leads by example.

Gaining Recognition

I recently received the Extra Mile Award from this organization for the second time in three years. It was a certificate presented at an employee meeting. The certificate states, “for whom we are grateful for going the extra mile.” I was thankful for this recognition, but I constantly strive to improve because I care deeply about helping those in need.

Like others at The Salvation Army, we appreciate the non-financial incentives offered to motivate and inspire us to do our jobs and perform to the highest degree possible. We know this industry cannot compete with private sector wages.

Other Non-Financial Incentive Examples

Our human resources department strives to create employee morale committees. Other examples of non-financial incentives offered include:

• Certificates of appreciation.
• Handmade coins of appreciation.
• The option to work a four-day week.
• The option to work at various times from home.
• Encouragement to attend conferences or seek additional education opportunities.
• Discretionary time off.
• Matching retirement funds.
• Service recognition certificates.
• And more.

At a recent development staff meeting, I asked what non-financial incentives meant the most to them. They mentioned working with such a close-knit team, having a caring culture, a global organizational statement that focuses on doing the best for people, training opportunities, flexible work schedule, and encouragement to do your best.

Nonprofit organizations want to retain their employees and reduce turnover. They aim to improve productivity, create a caring culture, and promote a positive work environment. They want their employees to take pride in their accomplishments and share them with others. Like The Salvation Army, nonprofits seek to establish and maintain non-financial employee incentives.

According to a study from the Society for Human Resources Management, non-cash rewards can improve productivity by as much as 44% in organizations. These rewards are critical to attracting, engaging, and retaining top talent. Each employee is unique and has varied reasons for working at nonprofit organizations.

Non-Financial Incentives Are Employee Motivators

Non-financial incentives provide a multifaceted approach to employee motivation and can help prevent nonprofit burnout. They are about creating positive options that foster employees' positive feelings for their employer. These programs need to be continually reinforced and adjusted to meet the needs of a dynamic workforce.

Don’t hesitate to ask your nonprofit colleagues what non-financial incentives motivate them. Ask for their feedback and work with your HR team to create an incentive program. Employees will willingly provide advice if they feel heard and see their ideas put into action.

The preceding blog was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.