Abstract
This paper evaluates the current state of monetary and non-monetary rewards systems in place in the UK banking sector in an attempt to identify reasons for the preference of monetary rewards over non-monetary rewards. Data was collected from two banks, LLOYDS TSB and Royal Bank of Scotland. The selection of these two banks emanates from their recent bonus crises and the fact that they are both part nationalised, hence the need for a prudent reward system. Questionnaires were used to obtain data and the Evidence Based Reward Management (EBRM) methodology was used to highlight the effectiveness as well as the challenges being faced by the banks with regard to their current monetary reward provisions. Findings reveal that bank employees generally value monetary rewards more than they value non-monetary rewards. Nonetheless, some non-monetary provisions, which virtually do not cost much money, may form the basis for viable alternative reward provisions for bank employees. These findings can help in formulating a more egalitarian reward system in the banking sector.
Highlights
Rewarding employees is invariably one of the most vital provisions organisations use to win employees’ satisfaction in the work place
It was further noted that over two-thirds of bank workers valued monetary rewards above non-monetary rewards. This may be explained by the findings that a good number of employees believed that monetary reward provisions are most effective ways of rewarding employees (Igbaekemem 2014)
Another interesting observation was that bank workers valued non-monetary rewards that were liquid in nature, such as shares, just about as much as pure monetary rewards
Summary
Rewarding employees is invariably one of the most vital provisions organisations use to win employees’ satisfaction in the work place. There are two types of reward systems: monetary and non-monetary. The extensive use of monetary rewards may be justified because they tend to be the major means for recruiting and retaining talent as well as providing tangible recognition of effort and contributions (Khan et al 2013; Igbaekemem 2014). Sheikh need for organisations to look beyond just monetary reward provisions as the importance of non- monetary reward systems cannot be underestimated (Tausif 2012)
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