4.1.3 Improving Employees’ Motivation
The organizational reward system to improve employees’ motivation includes things that employees value and desire, and which employees are able and willing to offer in exchange for their contributions. The employer provides compensations for those contributions. The reward system should include both financial and nonfinancial rewards. Financial rewards include direct payment (e.g., salary) plus indirect payments in the form of employee benefits (security and health, paid vacations, and employee services). Nonfinancial rewards include things in a work environment that enhances a worker’s sense of self-respect and sense of being respected by others (e.g. work environments that are physically, socially, and mentally healthful; opportunities for training and personal development; effective supervision; job satisfaction and recognition).
Less competitive wage levels, especially for skilled and qualified employees, in the public sector in comparison to the private sector are main contributors for less motivation. This is fuelled by added difficulties faced by employees arising from the relocation to the new capital. In light of this, public sector salaries were raised in fiscal year 2006-2007. At present, the gap between the compensation levels of the public and private sectors have been narrowed.