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Published by: api-3831590 on Oct 18, 2008
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03/18/2014

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Pay is an important element of motivation because:
Pay is an important element of motivation because:
\u2022
\u2022 is high part of the cost of a business
is high part of the cost of a business
\u2022
\u2022 It helps attract reliable employees with the skills the business needs for
It helps attract reliable employees with the skills the business needs for
success
success
\u2022
\u2022 it help to retain employees \u2013 rather than them leave and perhaps join a
it help to retain employees \u2013 rather than them leave and perhaps join a
competitor
competitor
\u2022
\u2022 For most employees is the most visible part of any job offer.
For most employees is the most visible part of any job offer.
But is only one element of motivation and will work best where
But is only one element of motivation and will work best where
management also give attention to:
management also give attention to:
\u2022
\u2022 Developing good management and supervision;
Developing good management and supervision;
\u2022 Designing jobs and organizing work groups to make them as satisfying as
\u2022 Designing jobs and organizing work groups to make them as satisfying as
possible;
possible;
\u2022 Providing feedback to staff about their performance and training and
\u2022 Providing feedback to staff about their performance and training and
development;
development;
\u2022 Making effective arrangements for communications and consultation.
\u2022 Making effective arrangements for communications and consultation.
Pay is a complex issue so there are several ways in
Pay is a complex issue so there are several ways in
which businesses determine which methods to use
which businesses determine which methods to use:
:
Wages
Wages and Salaries
and Salaries

Wages are normally paid per hour worked and workers receive money at the end of the week. Overtime is paid for any additional hours worked during the week. However salaries are annual and are paid at the end of each month.

Advantage:
Advantage:
\ue000Simple and easy to use
Simple and easy to use
for business.
for business.
Disadvantage
Disadvantage:
:
\ue000Workers may resent being paid
Workers may resent being paid
the same as a colleague who
the same as a colleague who
they feel is not so productive.
they feel is not so productive.

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