Incentives

What is the purpose of financial methods of motivation in a business?

They impact or influence the financial benefits employees receive from working within the business.

What is commission in the context of employee payment?

A payment usually based on the amount of goods an employee sells

• Which can be a percentage of sales or a flat fee.

How do salary schemes benefit employees?

Provides pension benefits based on earnings and length of employment or membership.

What is performance-related pay?

A payment system where employees are compensated based on their performance

• such as meeting objectives or production levels.

What is a non-financial method of motivation?

Strategies that don’t directly impact the financial benefits employees receive.

What is an example of a non-financial incentive related to healthcare?

Access to free private healthcare for employees.

How might gym memberships serve as a non-financial method of motivation?

Provide employees with access to fitness facilities.

What is an example of a non-financial incentive related to child care?

Providing free child care for employees.

What must a business consider when choosing between financial and non-financial methods of motivation?

• Financial position of the business

• Employee demands

• Competitors' actions.

Why is the financial position of a business important in using financial motivation methods?

Strong financial position’s needed as financial methods directly increase business costs.

How do the demands of employees affect motivation strategies?

Employees may value financial incentives in some cases and prefer non-financial incentives in others.

Why might the actions of competitors influence a business's motivation strategies?

To remain competitive, a business may need to offer similar incentives as competitors.

Incentives definition

Rewards or perks offered to employees or customers to encourage specific behaviors or actions

• To improve parents and achieve business goals