Business:Section 4 (Financial and Non Financial rewards)

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  • Finanical and Non financial rewards
    • Financial
      • Wages/Salary
        • Time rate- Pays workers by the hour. Encourages people to work longer
        • Piece rate- Pays by the work done. Encourages to work quickly
        • Salary is a fixed amount paid every month. Firm knows exactly how much the pay will be
      • Extra Payments
        • Bonus is a lump sum usually once a year
        • Commission is often paid to sales staff. More money for every item they sell
        • Pension Scheme , business pay money each month towards pension if the employee does as well
    • Non-Financial
      • Training motivates staff
        • Enjoy being good at what they do
        • Learn new skills for new tasks
      • More responsibility can be motivating
        • Job Enlargement- Giving them more tasks
        • Job Enrichement-Giving greater responsibility. E.g Supervise new staff
      • Fringe Benefits
        • Any reward not part of a workers main income.
        • E.g:Company car , gym memebership save money for the worker
    • Motivated staff
      • Perform better
      • Stay with the firm longer
      • Reduce staff turnover: saves business money recruiting


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