Incentives form an intricate part of the human resource-employee relationship and more often is the determinant on whether the relationship will continue or not. Cash and salary bonuses are the traditional incentives that most organizations offer and most employees expect. Needless to say, it is never enough to keep the most valuable employees. Non-traditional incentive systems are better in this case because they are less expensive to the company and more satisfying to the staff.
Non-traditional incentives aim at empowering and in-powering, they give the employees a better understanding at life, the company and their role and then, follow this up with giving them power and authority to command and implement changes.
Non-traditional incentives like increased leave days, team building holidays, training and increased authority over the social settings of the company can make tremendous effects on the performance of the employees for the better.
Currently, the economy is trying to get out of a depression that had reduced the amount of cash flow and investments that most organization had access to.
The staff unions will always seek to have the salaries of their members increased in order to keep up with the rate of inflation being experienced.
The companies cannot be able to afford it currently and this will in turn lead to a union busting and calling onto their members to boycott work or in worse cases long court cases that eventually damage the brand of many organizations. There has to be a give back that ensure that there is an equilibrium point that is arrived at by the union and the companies.
The implementation of a non-traditional incentive system would be in the best interest of the companies and the staff as it is cost effective and improves the quality and level of professionalism of the labor.