Optimization of non-monetary reward provisions: Evidence from the UK banking sector

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.

Keywords

• monetary rewards
• non-monetary rewards
• extrinsic and intrinsic rewards
• banking sector