Financial methods of motivation

pay is the money earned by workers as a reward for the work they do
1. Two methods of pay are wages and salaries
  1. salaries is a set amount for the year paid in 12monthly instalments
  2. wages is the amount you get paid weekly
2. Pay is a cost to the business. High costs may reduce profits
Profit sharing is where workers receive some money made b the business
1. a business sets a portion of its profits which is shared out to workers
2. This is a cost to the business. Shareholders may feel that profit sharing reduces their dividends
Bonus is an additional payment made to workers who achieve a target
1. Its paid on top of your wages or salary. It is performance related
2. Targets need to be realistic or workers may not be able to achieve them
Fringe Benefits are additional benefits that workers receive on top of their pay
1. Its a cost to the business therefore it may reduce profits
2. These are benefits other than money that a worker may receive on top of their pay for example car allowance

Resource summary

	Created by Thea Friend about 6 years ago