Guideline to Motivate Personnel to Work Effectively with Non-Financial Compensation


  • Rutcharin Kullachart, Thitirat Thawornsujaritkul, Thanin Silpcharu


Situations in which organizations encounter constraints on their financial compensation ability may lessen employees’ motivation to work. The objective of this study was to investigate guidelines to motivate personnel to work effectively with non-financial compensation. Both qualitative and quantitative studies were conducted. Questionnaires were used to collect the quantitative data from 500 executives in industrial business sector. Descriptive, inference, and multivariate statistics were used to analyze the data.

It was found that 5 components to motivate personnel to work effectively without compensation that gained the highest means arranged in the order of importance were work environment with an average score of  4.21, job management with an average score of 4.04, company policies with an average score of  4.02, social relations with an average score of  3.95 (S.D. = 0.608), and career path with an average score of 3.95 (S.D. = 0.613) respectively.
The most important guideline item found in each component was: providing hygienic toilet system, adding values to work by giving personnel more opportunities to make decisions, administrators accepting personnel’s opinions and suggestions, promoting teamwork, and supporting employees’ career advancement without gender and age discrimination, respectively. As for the hypothesis test, the study showed, as a whole, that executives in different sizes of enterprises (i.e. small, medium and large) recognized the importance of the studied guidelines differently at the statistical significance level of 0.05.

            The analysis of the developed structural equation model revealed that it passed  the assessment criteria and was consistent with the empirical data. The calculated values of probability of chi-square, the relative chi-square, the index of consistency, and the root mean squared error of approximation were 0.056, 1.141, 0.953, and 0.017 respectively.