Name: elianne de silvia

Motivation (contd)

Financial methods - financial rewards or any payments of money made by employer to

employees in exchange for their labour eg. overtime pay, wages, salaries

● Overtime pay
This is money offered to an employee who works beyond his or her scheduled
working hours (40 hours per week). This is mainly applied to workers who are paid
weekly or biweekly.
● Piece-rate pay
An employee is based on the output of the day the higher the output the higher the
pay. There is a base wage and then according to your productivity levels extra
money gets added to the base. Mostly applied to those who get paid weekly.People
who work in factories get paid like this.
● Bonuses
A bonus is a lump sum (a large amount) of money in excess to of the employees
monthly or weekly payment. Bonuses are usually paid at the end of the quarter or the
year depending on how much profit the business has made.
● Commission
This is a sum of money paid to employees when they meet a desired target or it is
given as a percentage of the sale when the customer makes a purchase. eg. if a
salesperson gets 10% of each sale then if they sell 2 bmws at $500,000 then they
will make $100,000 at the end of the month on top of their base salary
● Profit-sharing
This is where in addition to the employees regular pay they receive a given
percentage of the profits earned by the firm during a given period (bonuses are not
guaranteed. Profit sharing is as long as the business makes a profit). profit sharing
gives the employee a sense of ownership and encourages them to maintain a high
level of productivity. Profit sharing is a percentage of the profit.
● Allowances
As employees perform on the job they may be awarded allowances. They are also
determined by seniority therefore a manager would have more allowances than
someone lower down in the business. eg. a company vehicle, a company mobile
phone, computer or house allowances etc.
● Performance rates
This is a good way of encouraging high performance within the business. Businesses
not involved in manufacturing will tend to use this reward system. Targets are often
set for the employees to meet and once the employee exceeds the targets they will
receive additional payments.

Non-financial methods/ Fringe benefits - used to make a job more attractive. Fringe benefits
are non-financial incentives given to employees; they are often used to attract employees
into a particular job and to encourage them to stay or remain in the business. Financial
methods can also be referred to as fringe benefits.

● Training
The equipping of employees with the skills and knowledge they need to do the job
effectively.
Name: elianne de silvia

● Opportunity for promotion

The chance for employees to move up to a higher level in a business. Granted by the
employer.
● Awards and recognition
This is when the employee has been acknowledged or celebrated for excellent
performance in the business allowances may be included in the rewards. Eg
employee of the month, employee of the year.
● Social activities / team oriented culture
This is when the employees of a business come together and familiarise in order to
work together on their team building skills to benefit the business.
● Others
● Flexible schedule
A flexible working schedule is when the employees have to work the mandatory 40
hours a week but they can work it when they want to which provides a level of
independence as the employees get to choose when they work as long as their
required amount of hours is completed.