Financial motivation & Fringe benefits

Wages

• A payment relating to the number of sales made.

• Payment for work, usually paid weekly.

• Payment for work, usually paid monthly.

• An additional amount of payment above basic pay as a reward for good work.

Salary

• A payment relating to the number of sales made.

• Payment for work, usually paid weekly.

• Payment for work, usually paid monthly.

• An additional amount of payment above basic pay as a reward for good work.

Commission

• A payment relating to the number of sales made.

• Payment for work, usually paid weekly.

• Payment for work, usually paid monthly.

• An additional amount of payment above basic pay as a reward for good work.

Bonus

• A payment relating to the number of sales made.

• Payment for work, usually paid weekly.

• Payment for work, usually paid monthly.

• An additional amount of payment above basic pay as a reward for good work.

Profit sharing

• A payment relating to the number of sales made.

• A system whereby a proportion of the company's profit is paid out to employees.

• Payment for work, usually paid monthly.

• An additional amount of payment above basic pay as a reward for good work.

Advantages of wages include the following, EXCEPT...

• The worker gets paid on a regular basis and does not have to wait long for money.

• If an employee works longer, they will usually get paid more.

• A clocking-in system is needed to track the number of hours worked.

• Workers are motivated to work faster.

There are two ways wages are paid...

• Time rate and piece rate

• Time rate and hourly rate

• Piece rate and salary

• Piece rate and bonuses

All of the following are limitations of a commission, EXCEPT...

• It encourages employees to push for sales

• It is very stressful to the employee

• It results in competition among staff

• Customers may end up buying goods they don't really want

Fringe benefits include the following, EXCEPT...

• free accommodation

• company vehicle

• free trips abroad/holidays

• profit sharing

A bonus... (tick all the right answers)

• helps workers feel 'recognised' and 'special'

• has a positive motivating effect

• is similar to a salary

• May become 'expected' and workers will be disappointed if they do not receive it