PAY & REWARDS

WHAT IS IT?

Incentives offered to employees in return for

the work they have done

Can be financial or non-financial

 FINANCIAL REWARDS
Basic Wage: paid fix amount each week/month

Hourly Rate: paid a certain amount for each hour worked e.g. 9.25/hr

Piece Rate: paid a fix amount for each item made e.g. 1 per shoe

Commission: receives a % of the sales they make

Bonus: lump sum payment for achieving a target

Share Ownership: given free or cheap shares in the business

Profit Sharing: form of bonus where the employees get a share of profits
made
 NON-FINANCIAL
Benefit-in-kind: non-cash form of income e.g. company phone

Job Enrichment: employees given greater responsibility in the business

Job Enlargement: employees given extra duties in order to relieve the

boredom of work

Improved Working Conditions: employers can reward employees with

flexi-time or offering longer holidays
 BENEFITS
Employees are motivated to work harder which can
lead to better sales

Good pay and rewards allows the business to attract

the very best employees e.g. Google