The Empirical Study On Non-economic Reward Motivation Factors

In our country, with the sustained rapid economic growth and the continuous progress of technological change, employees'work attitude and behavior have changed a lot.Increased competitive pressures in the workplace, discordant human relations , insipidity brought by streamlining work and the issues of child care and elderly dependency due to work in double harness begin to emerge. Moreover, employee needs are demanding diversity because of the continuous improvement of living standards and the development of management practice. Working environment, working conditions, personal development, organizational development and other non-economic reward factors play a more important role than money in the eyes of some employees, especially for those who are in higher level of demand. Nowadays, traditional compensation management systems often take a fixed and single pay strategy, but inflexible wages rise and the characteristics of diminishing returns determine the inherent limitations of Incentive Compensation, and single mode of money payment makes it difficult to form a good psychological contract between organizations and employees. Thus, traditional compensation payment system seems onefold, deficient and with limited success in motivating staff goal, which can't truly mobilize staff enthusiasm and initiative.In recent years, the comprehensive compensation idea and the total reward idea have become the new development tendency of internationalization compensation management. As a core component of the total reward idea, the non-economic reward has unparalleled advantages in meeting staff diversified need and carrying on long-term and flexible motivation to the staff compared with traditional way of compensatory payment. It can be foreseen that the future challenge is that how to improve total compensation idea so as to attract, retain and motivate talented people through effectively conformity non-economic reward of compensation system.This study is based on process-based motivation theory and with guidance of popular total rewards and total compensatory theory. First of all, this paper systematically reviews the process of development of compensation idea and compensation management, clearly defines the meaning of non-economic reward, systematically builds five incentive dimension of non-economic reward and proposes the point that the implementation of non-economic reward can effectively resolve the threshold effect of economic reward. By building the model of " Employee needs—non-economic reward", this research puts forward the idea that employees in different levels of needs have different choices of preferences on non-economic incentives. Secondly, taking the employees of enterprise and public institution in Zhejiang Province as an example, this empirical analysis analyzes the employees'emphasis and satisfaction on the factors of non-economic incentives and reveals that the staff with different background characteristics have different preferences on the motivators of non-economic reward and there are errors between the motivators that staff view as important and those carried out in practice by enterprise and public institution. This paper further structures equation of linear regression between the factors of non-economic incentives and employees'satisfaction. Through structural equation model, preliminary theoretical model has been tested. Finally, for the conclusion of empirical analysis, this thesis makes recommendations of implementing non-economic reward.The innovation of this paper is mainly reflected in the construction of "needs of employees - non-economic incentive compensation" model, the model clearly shows that employees'demand levels have an impact on their preference for the Incentives for non-economic reward; on the other hand, from a dynamic perspective to the empirical evidence, this paper proves that the research results can be directly applied to the management practices of enterprises.In this study, the relevant theoretical and empirical research form the basis for the further study of"compensation for non-economic", so the overall compensation theory and total reward theory can be further enriched and improved in theory; this research reminds the enterprises and institutions to be really aware of the important role of motivation which non-economic reward plays to avoid them falling into the trap of single economic incentive pay, so that enterprises and institutions can achieve the purpose to better attract, retain and motivate staffs.