Pay : Higher wages, may receive a pay rise as a reward for good work over a time period.
Bonuses: Reward for reaching targets. Performance related pay is a financial reward for empoyees working above and beyond. Appraisal systmes. Unfair if management reward through favouritsm.
Commission: Payment of commission as a remuneration for services rendered or products sold is a way to reward sales people. Payments are often calculated on the basis of a percentage of the goods sold. A disadvantage of commission is that a sales person may be competent but the economic climate could affect their sales.
Profit-sharing: Provide staff with a share of the firms annual profit. This puts staff in the same position as shareholders. Can motivate as they may have previously believeed profit as shareholders taking pay from their profits. Can make employees feel more involved in the running of the business.
Fringe benefits: Rewards above basic pay such as, company cars, memberships to clubs or gyms, health care, discounts on company products. Usually put in place to encourage staff loyalty and improve human relations. opportunity cost as money spent on these could be reinvested in the company elsewhere.
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