Frontiers in Business, Economics and Management ISSN: 2766-824X | Vol. 6, No. 3, 2022 67 Brief Analysis of the Impact of Material Incentives and Non‐Material Incentives On the Performance of Enterprise Employees Xiyuan Mu1, a 1Thomas senior high school, Jinan, Shandong, 250001, China aDaniel_muxy@163.com Abstract: In recent years, with the rapid development of social economy, the development of enterprises has also received more and more attention, the management of enterprise employees has become more and more scientific, and more and more attention has been paid to improving the work enthusiasm of enterprise employees, to achieve the purpose of improving the performance of enterprise employees, promoting the development of enterprises, and thus increasing corporate profits. To this end, the management has implemented a variety of incentives, which can be divided into two categories, namely material incentives, and non-material incentives. This paper intends to explore the impact of material incentives and immaterial incentives on the performance of enterprise employees in different aspects, analyze their differences and differences in depth, and put forward some personal suggestions accordingly, to provide a modest force for the benign development of enterprises and provide some lessons for academic research. Keywords: Material incentive, Non-material incentive, Performance impact. 1. Introduction Man is the main body of social and economic activities and the most active and active factor in the productive forces. The cultivation, development and utilization of human resources are the determinants of economic growth. From the perspective of enterprises, the uniqueness, irreplaceability and irisimibility of human resources determine that human resources directly constitute the key strategic resources of the core competitiveness of enterprises, and people-oriented management will dominate the new wave of management in the 21st century. The success or failure of an enterprise will depend to a greater extent on the development and utilization of human resources Material incentive refers to the use of material means to make the motivated person get material satisfaction, mainly including prizes, funds, and other forms. Non-material incentives refer to the way enterprises take methods other than money to motivate employees spiritually, mainly including praise, authorization, setting an example and other forms. [1] This paper aims to explore its impact on the performance of different employees, analyze the continuity of the impact of performance, and study the similarities and differences between material incentives and immaterial incentives in terms of the impact of employee performance. Due to my limited ability, if there is any impropriety, I hope to correct it. 2. The Impact of Material Incentives On the Performance of Employees in Enterprises Material incentives mainly act on the material life of employees, therefore. The impact on employee performance is also more focused on this aspect, which leads to different levels of impact on employees in different situations. [2] First, for those employees who value money more than they say, pursue material enjoyment, or urgently need money, this material incentive method can provide them with money, improve their material life, thus providing them with the motivation to work hard, and making them work harder and improve their performance. For example, bonuses, real money in their hands gives them far more happiness than a few fluttering words of encouragement and makes them more motivated to improve performance. Moreover, for those employees who value spiritual enjoyment more, or who are already sufficiently material, this incentive method has little effect on them, because they have little pursuit of material aspects, and do not need additional monetary subsidies, so they are not motivated or motivated to pursue performance and have little effect on the improvement of their performance. Or the example of bonuses, a person who just goes to the company to mess around and does not pursue money, it does not matter how much the bonus is, it does not matter whether the performance is improved or reduced, all the monetary rewards cannot arouse their morale, not to mention the company's bonus is not too much. In addition, this kind of material incentive can only achieve better results in the short term for employees who value money or are in urgent need of money. On the one hand, if an employee has this material incentive as a source of income for a long time, the assets he has will continue to grow, and after a period, he may not be so short of money, and the attractiveness of money will gradually decrease. Or rather, this kind of bonus-like material incentive will become dispensable. [3] And as a profit- oriented organization, material incentives such as bonuses will not pay a large cost, and the original attraction to employees will not be too large. On the other hand, long-term material incentives, to some extent, will also lead to short- sighted employees, can only see the immediate interests, busy pursuing performance, limiting their vision to a small aspect, lack of internal motivation, lack of creativity, but also lose the enthusiasm for work, just mechanically pursue performance improvement, blindly strive for the individual responsible for 68 the work of the over-completion. In the long run, it will lead to unreasonable competition between employees, the repetition of contradictions will increase, which is not conducive to management, and it will also lead to employees losing their sense of belonging to the enterprise, and only the enterprise sees it to make money. At the same time, long-term material incentives will cause employees to lose their internal motivation, so that the development of enterprises has not innovated for a long time, fallen into bottlenecks, and gradually cannot keep up with the growth rate of other competitors, and eventually faces the consequences of being eliminated by society. Imagine if there were no more cakes, how much cake would the employees who shared the cake get? Therefore, the impact of material incentives on employee performance varies from person to person, and only in the short term for some people can achieve good results, can stimulate them to work hard, and then greatly improve employee performance. However, in the long run, the use of material incentives alone will make money less attractive to employees and will also bring the development of the enterprise to a standstill, which will eventually lead to lower performance of employees. 3. The Impact of Non-material Incentives on The Performance of Employees Like the material incentives act on the material life of employees, non-material incentives act on the non-material aspects of employees, mainly referring to the spiritual life of employees. And the impact of non-material incentives on employee performance varies from person to person, and the impact of non-material incentives on employee performance is also different from person to person. First of all, for those employees who value money more, pursue material enjoyment or urgently need money, this non-material incentive method can not provide them with much-needed money, but can only provide spiritual encouragement, but it is difficult for qiao women to cook without rice, no matter how they are encouraged, material conditions greatly limit them, their basic life or the pursuit of material life is not achieved, and let the horse run, and do not give the horse grass. These employees must have the heart and weakness, and even more unintentional and powerless, no additional mind to care about the development of the enterprise, nor the strength to improve personal performance, but also not conducive to their sense of belonging to the enterprise but think that the enterprise always draws a big pie, the corporate image is also adversely affected. Second, for those employees who value spiritual enjoyment more, or have sufficient material resources, this motivation method can play a role. For these people, they are materially sufficient, but spiritually they need to be satisfied. Especially with the continuous improvement of people's material living standards, people's psychological needs for praise, understanding, respect, recognition and so on are more and more urgent, which is what this non-material incentive provides, through encouragement can make them get a sense of identity, increase their sense of belonging to the enterprise, stimulate their work motivation, let them have the confidence to have the impulse to work, thereby improving personal performance. At the same time, due to the recognition and praise they receive, their sense of belonging to the enterprise will be strengthened, which will stimulate their work motivation, stimulate them to think about the development of the enterprise from various fields, just like for their own home, improve the level of production, service water, publicity and other aspects of the enterprise, develop the problems existing in the development of the enterprise and put forward personal views, further make the cake bigger and stronger, and ultimately indirectly improve their performance. Finally, this kind of immaterial incentive is somewhat similar to the incentive effect of material incentives in the time period, that is, it can effectively motivate employees to work in the short term, thereby improving employee performance. However, in the long run, non-material incentives act on people's hearts, and simple forms include praise and encouragement, which may be ineffective after multiple uses, and the degree of stimulation for employees will gradually decline until they disappear. However, there are many forms of intangible incentives, similar to competitive competitions, setting an example and other forms of incentives, which are effective for a long time and change in a variety of ways, not only on the persistence time of employees, but also on the creativity of employees. For example, competition, a non- material incentive means, can make employees under certain pressure, so that they have more motivation to work, and when necessary, they can even break through themselves, creatively put forward new ideas and new ideas, further help enterprises to a new height, make the cake bigger and stronger, and also improve employee performance. The same is true of the approach to setting an example, where management can set a role model and give him enough recognition as well as the right to motivate other employees to learn like him and thus improve their performance. This form of immaterial incentives can remain unchanged, but the specific examples set can be changed from time to time, as long as there is a role model, no matter who it is, it will increase the pressure on employees, make them angry and strong, surpass themselves, and thus play a role in improving performance. Therefore, the impact of this kind of immaterial incentive on employee performance is also different from person to person, as opposed to the impact of material incentives. In terms of duration, because the forms of intangible incentives are more diverse, the duration of the effect is longer, whether it is short- term or long-term, non-material incentives have a good effect, but also can promote the development of enterprises, indirectly improve the performance of employees. Conclusion In summary, the two types of incentives of material incentives and non-material incentives have a large difference in the impact on the performance of enterprise employees, the former mainly acts on material life, the latter mainly acts on spiritual life, and the role of the two for employee performance also needs to be different from person to person, for employees who value money, pursue material enjoyment or urgently need money, material incentives have a better effect, and non-material incentives have little effect; For those employees who value spiritual enjoyment more, or have sufficient material aspects, the non-material incentive effect is better, and the material incentive effect is less obvious. In addition, the material incentive form is not as diverse as the non-material incentive form, and the duration of action is also shorter than the duration of the non-material incentive. [4] 4. Conclusion Motivation is fundamentally about guiding people in the direction that the business expects. The core of enterprise management is to manage people, the most critical thing for 69 enterprises to survive and develop is to rely on people, as the two ways of enterprise incentive mechanism, material incentives and spiritual incentives are integrated with each other, sometimes material incentives contain spiritual incentives,[5] sometimes spiritual incentives include material incentives, there is no obvious dividing line between the two, and the organic combination of the two can play the best effect of the incentive mechanism. On the whole, for the development of enterprises, the two need to be combined with the use of different incentives, for different people to take different incentives, and pay more attention to the role of non- material incentives, often replace new non-material incentives, while meeting the material needs of enterprise employees, maintain the stimulation for them,[6] so that they have a sense of belonging, motivation, and pressure on the enterprise, stimulate their internal motivation, improve their performance at the same time, but also help enterprises to further develop, bigger and stronger cake, Indirectness increases their performance. References [1] Yuan Ying; Lu Wenwen. (2009).Material and spiritual motivation in management. China Collective Economy(07),63- 64. [2] Fang Hongjun. (2008).A Theoretical Study on the Continuum of Material And Spiritual Motivation. Development of Scientific and Technological Information and Economy (03), 185-186. [3] Qi Lingling.(2011). The establishment of an incentive mechanism that combines material and spiritual motivation. Administrative Business Assets and Finance(20),177. [4] Zhao He.(2019). Application of incentive mechanism in enterprise management China Business Review(08),156-157. [5] Zhao Qiang.(2016). Research on strategic human resources performance management and employee motivation(05),211. [6] Wang Jun.(2017). On "strategic incentives" in human resources management.(10),79-80.