The document discusses non-monetary incentives and economic benefits. It defines non-monetary incentives as rewards given for exceptional performance that are not cash-based. Examples include flexible work schedules and training opportunities. While low-cost, non-monetary incentives can boost engagement, full participation is not guaranteed. Economic benefits are quantified advantages like income, profits, and tax revenues from growth. Higher economic growth leads to lower unemployment and better public services due to increased tax revenues. Common types of economic benefits include economies of scale and bargaining power. Potential downsides include inconsistent income and business expenses for the self-employed.

1. PRESENTATION ON
NON MONETARY INCENTIVE
AND ECONOMIC BENEFITS
MASTERS OF BUSINESS ADMINISTRATION
SUMBITTED BY:
Name: Ankit Raj Pandey
Session: 2022-2024
Course: MBA (II)
SUMBITTED TO:
RUMNA MAM

2. TABLE OF CONTENTS
• Introduction to Non Monetary
Incentives
• Difference Between Monetary and Non
Monetary Incentives.
• Benefits of Non Monetary Incentives.
• Types of Non Monetary Incentives.
• Positives and Negatives of Non
Monetary Incentives.
• Introduction to Economic Benefits.
• Benefit of Economic Benefits.
• Types of Economic Benefits.
• Positives and Negatives of Economic
Benefits.

3. INTRODUCTION TO NON
MONETARY INCENTIVES
 Non monetary incentives are presented for exceptional job
performance or attainment of special goals that add value to the
such as achievement of sales goals, professional training and
conducting successful research programs etc.
 This implies that the management or the business owner has to
take several considerations into account before handing them out
like employee age, career-stage and proximity to retirement from
job etc.
 This has to be managed by the human resource (HR) department
that should conduct a comprehensive evaluation program to match
employee preference.

4. DIFFERENCE BETWEEN MONETARY AND
NON MONETARY INCENTIVES
Basis of Difference Monetary Incentives Non Monetary Incentives
1. Measurement These can be measured in terms
of money.
These cannot measured in terms
of money.
2. Suitability These are highly effective in case
of workers.
These are effective in case of
mangers.
3. Level of Satisfaction These help in satisfying lower
level needs (Food, Clothing and
Shelter).
These help in satisfying higher
level needs (Status).
4. Visibility These are visible as they are
measurable in terms of money.
These may not be visible as they
are not measurable in terms of
money.

5. BENEFITS OF NON MONETARY INCENTIVES
1) Non-monetary incentives can be distinguished: Cash prizes for outstanding performance
are no longer unusual.
2) Non-monetary incentives are more memorable and emotional: In reality, a non-cash reward
will always be more emotionally beneficial to an engaged employee. The emotional worth of
a reward increases when employees receive something they can keep, show, or experience.
3) Fringe benefits attract Gen-Z and millennial employees: However, compensation is not the
only criterion young employees look for in jobs. After compensation, the next questions
employees ask today are about employee engagement, morale, flexibility, and work culture.

6. TYPES OF NON MONETARY INCENTIVES
1) Flexible working arrangements: Allowing your employees to work from home on certain
days of the week or allowing workers to choose their hours is a great way to implement an
incentive program without any cost.
2) Physical rewards: Whether it’s something as simple as a thermos with a funny, personal
saying or something as extravagant as a set of golf clubs, there is significant emotional
value that tends to come with physical rewards.
3) Growth opportunities: Some of the studies mentioned above show that career development,
training, and education opportunities are amongst some of the most highly prized benefits a
company can offer.

7. POSITIVES AND NEGATIVES OF NON
MONETARY INCENTIVES
Positives of Non Monetary
Incentives
1. Good fringe benefits attract millennial.
2. Non-monetary incentives are trending right
now.
3. Many of these incentives are inexpensive.
Negatives of Non Monetary
Incentives
1. Some non-monetary incentives can be a
waste of money.
2. Full participation isn’t always guaranteed.
3. Non-monetary incentives can be an
organizational nightmare.

8. INTRODUCTION TO ECONOMIC BENEFITS
 An Economic Benefit is any benefit that we can quantify in
terms of the money that it generates.
 Net income and revenues, for example, are forms of
economic benefit. Profit and net cash flow are also economic
benefits.
 Net income and revenues, for example, are forms of
economic benefit. Profit and net cash flow are also economic
benefits.

9. BENEFITS OF ECONOMIC BENEFITS
1) Higher average incomes: Economic growth enables consumers to consume
more goods and services and enjoy better standards of living.
2) Lower unemployment: With higher output and positive economic growth, firms tend to
employ more workers creating more employment.
3) Lower government borrowing: Economic growth creates higher tax revenues, and there
is less need to spend money on benefits such as unemployment benefit.
4) Improved public services: Higher economic growth leads to higher tax revenues and this
enables the government can spend more on public services, such as health care and
education etc.
5) Investment: Higher investment increases the scope for future economic growth –
creating a virtuous cycle of economic growth/investment.

10. TYPES OF ECONOMIC BENEFITS
1) Economic of Scale: The tendency for cost per unit to drop as you produce more of a product
or service.
2) Economies of Scope: Efficiencies related to offering a wide variety of products and services.
3) Absolute Advantage: The ability to produce more than your competitors with each unit of
resources such as labor, capital and land.
4) Bargaining Power: Bargaining Power is the ability to influence in negotiations. In other
word, you tend to have a better position when you have little to lose.
5) Barriers to Entry: Barrier to entry is how difficult it is for new competitors to enter your
market.

11. POSITIVES AND NEGATIVES OF ECONOMIC
BENEFITS
Positives of Economic Benefits
1. Low barriers to entry.
2. Flexibility.
3. Variety.
4. Independence.
5. Opportunity to try new jobs.
Negatives of Economic Benefits
1. Inconsistent income.
2. Lack of benefits.
3. Responsible for taxes and expenses.
4. Potential stress.

12. REFERENCES
• Web Sites:
• Non Monetary Incentives:
• https://www.thehumancapitalhub.com/articles/Benefits-Of-The-Monetary-And-Non-
Monetary-Incentives
• https://www.inproma.com/industry-insights/the-pros-and-cons-of-monetary-vs-non-
monetary-incentives-for-employees/
• Economic Benefits:
• https://marketbusinessnews.com/financial-glossary/economic
• https://www.economicshelp.org/macroeconomics/economic-growth/benefits-growth/
• https://simplicable.com/new/economic