financial rewards

• Though there are many reasons why people work for a living, it is undeniable that money, or other financial rewards, play a key role in motivating people in the workplace
• Ways a business can offer money (or "financial rewards") as part of the "pay package"


  • Salaries
  • Benefits in kind ("fringe benefits")
  • Time-rate pay
  • Piece-rate pay
  • Commission
  • Other performance-related pay
  • Shares and options
  • Pensions
• Salaries


  Fixed amounts per month or year for performing a role; these are common for most managerial positions (e.g. Accountant, Payroll Manager)
• Benefits in kind ("fringe benefits")


  Very common in businesses of all kinds; these include staff discounts, contributions to travel costs, staff uniforms etc
• Time-rate pay


  Pay based on time worked; very common in small businesses where employees are paid per hour
• Piece-rate pay


  Pay per item produced – becoming less common
• Commission


  Payment based on the value of sales achieved
• Other performance-related pay


  e.g. bonuses for achieving targets
• Shares and options


  Less common in small businesses, but popular in businesses whose shares are traded on stock markets
• Pensions


  Becoming less common and generous. Small businesses tend not to offer pension benefits
• In most cases, an employee might expect to have a mixture of the above in a pay package
• Poor or low pay

  Acts as a de-motivator
• Someone who feels undervalued or under-paid


  May soon leave to find better-paid employment
• Paying people more is unlikely to encourage them to work harder or to a higher standard
• For most people, motivation (the will to work) comes from "within"
• More money can help us feel better about our work, but it is unlikely to encourage us to work harder or to a higher standard