Non-financial Incentives are those incentives which cannot be measured in terms of money.

Two non-financial incentives are:

(a) Job Security: Generally workers prefer security of job. They may not prefer jobs with higher wages or salaries which do not carry security of job. They want certain stability about future income and work so that they may become complacent and work with a greater zeal.

(b) Status: Status refers to rank, authority, recognition, and prestige related to the job. It is concerned with social status of a person satisfying egoistic needs. This can be done by way of giving various facilities or by offering higher rank in the organisation to get this non-financial incentive. A person will have to show certain achievements or desired performance to more to a higher status which motivates employees having self esteem and self actualisation need active in them.

(c) Organisational Climate: These are the characteristics which describe an organisation. The characteristics have direct influence over the behaviour of a member A positive approach adopted by a manager creates better organisational climate whereas negative approach may spoil the climate.

(d) Career Advancement Opportunities: When employees are provided promotional opportunities they improve their skills and efficiency with the hope that they will be promoted to the higher level. Appropriate skill development programmes and sound promotion policy help achieve promotions. Promotion works as a tonic or a big stimulator which induces people to exhibit their best performance.