Financial Rewards/ Motivators
Non-Financial Rewards/ MotivatorsMotivating factors
Motivating factorsGroup discussion:
Identify one non-financial motivation you would like to have when you are working with this job. Explain why? Finance Manager
Motivating factorsGroup discussion:
List as many non-financial motivators you may find from the video clips: Working in GooglePlex
Financial FactorsDefinitions to learnWage is payment for work, usually paid weekly
Financial FactorsWagesAdvantages:The workers gets paid on a regular basisExp: Wages tend to be paid weekly to the workers
2) Workers will be paid overtime if works longer than normal hoursExp: This is an incentive to work additional hours when required by the business
Financial FactorsWagesDisadvantages:It takes time to calculate the wages.Exp: This is because wages are paid weekly, the Human Resource clerk needs to calculate wages for every employees weekly.
2) Wages clerk need to be hired.Exp: Clerks need to be hired to manage the payroll.
Financial FactorsTime rateAdvantages:It is easy to calculate the workers wagesExp: The workers know exactly what they will be paid for working a certain period of time.Disadvantages:This system takes time.Exp: The hour worked are often recorded on a time-sheet which must be filled in and used to calculate the wages by the Accounts Department.
Financial FactorsTime rateDisadvantages:2) Good and bad workers get paid the sameAmount of money.Exp: Some workers might not be happy with this system because it is not paid based on the workers performance.
Financial FactorsTime rateDisadvantages:3) Supervisors need to be hired.Exp: More supervisors are to be hired in order to make sure workers keep working and producing a good quality product.
4) A clocking-in system is needed in the company.Exp: This is important in order to determine the number of hours worked by the employees are being recorded correctly.
Financial FactorsPiece rateAdvantage:Employees are paid according to the outputproduced.Exp: This will encourage workers to work faster.Disadvantages:The quality of the goods might be ignored.Exp: Workers may concentrate on making a large number of products and ignore the quality.
Financial FactorsPiece rateDisadvantages:2) Conflict between employees regarding their pay.Exp: Workers who are careful in their work will not earn as much as those who rush, which may not be seen as fair.
3) If the machinery breaks down, employees will earn less money.Exp: This is because, workers are often paid a guaranteed minimum amount of money.
Financial FactorsTime Rate- payment for time periodAdvantages:1) Easy to calculateDisadvantages:Needs to record on time-sheet.Good and bad workers get same paid.Supervisor needs to monitor workers.A clocking-in system is needed.
Financial FactorsDefinitions to learnA salary is payment for work, usually paid monthly.
Commission is payment relating to the number of sales made.
Profit sharing is a system whereby a proportion of the companys profits is paid out to employees.
Bonus is an additional amount of payment above basic pay as a reward for good work.
Financial FactorsDefinitions to learnPerformance-related pay is pay which is related to the effectiveness of the employee where their output can easily be measured.
Share ownership is where shares in the company are given to employees so that they become part owners in the company.
Financial FactorsPiece Rate- paid depending on the quantity of products made.Advantages:1) Encourages workers to work faster.Disadvantages:May ignore the quality of products.Workers who are careful will not earn as much. Conflict among workers will happen.If machinery breaks down, employee will earn less money.
Financial FactorsSalaries- are paid monthlyAdvantages:1) It is paid for the job monthly basisDisadvantages:Extra work will not usually paid for.It is fixed amount.
Other rewards added to basic salary
CommissionProfit sharingBonusPerformance-related payShare ownershipFinancial Factors
Non-Financial FactorsDefinitions to learnFringe benefits are non-financial rewards given to employees
Non-Financial FactorsExampleCompany vehicleDiscount on the firms productsHealth care paid forChildrens education fees paidFree accommodationShare options (where company shares are given to employees)Pension paid for by the businessFree trips abroad/ holidays