The primary objective of this research is to investigate how non-financial incentives impact employee motivation within the Small and Medium Enterprises (SMEs) operating in Saudi Arabia. Employing a positivist research approach, we employed a carefully crafted survey to collect data from 365 employees employed by SMEs situated in Jeddah. The study explores various aspects, including the most common non-monetary motivators, the interplay between non-monetary and monetary incentives, and the effects of non-financial incentives on employee engagement, job satisfaction, and commitment. The results of the study indicate that employees working in small and medium-sized enterprises (SMEs) in Saudi Arabia place a significant emphasis on a good work environment, recognition, possibilities for personal and professional development, and career growth as prevalent non-monetary motivators. Additionally, the research illustrates a notable difference in the perceived efficacy of non-financial and financial incentives, whereby non-financial incentives are seen to have an equal, if not greater, impact on both motivation and work satisfaction. Moreover, the study reveals robust positive correlations between non-financial incentives and employee outcomes, underscoring the significance of these incentives in augmenting work satisfaction, job engagement, and commitment. The consequences of employee motivation are influenced by control factors, which have diverse influences, highlighting the complex nature of this phenomenon.

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