Motivating Employees

• What does motivation refer to in the context of employees?

  Motivation refers to how driven and happy an employee is in their role.
• How does motivation affect an employee's performance?

  If an employee is motivated, they are more likely to do a good job and work hard.
• Why is motivation important for a business?

  Motivation is important for attracting employees, retaining employees, and general levels of productivity.
• What are the key aspects of attracting employees?

  • High levels of motivation in the workplace attract potential employees.
  • Motivated staff are more likely to recommend their workplace to potential applicants.
• What does employee retention refer to?

  Retention refers to keeping employees working for a business.
• Why is employee retention important?

  Retention is important because long-term employees require less monitoring and training.
• What are the benefits of retaining employees?

  Retaining employees keeps their skills and experience within the business and avoids wasting time and money hiring new employees.
• How does training and development affect employee retention?

  Employees feel valued by a business that invests in their training and development, making them more likely to stay.
• What does productivity relate to in a business context?

  Productivity relates to how much work is completed by employees.
• How is productivity usually measured?

  Productivity is usually measured in the number of products produced or the amount of work completed in a certain period of time.
• Why do businesses aim for high levels of productivity?

  High levels of productivity lead to more revenue and potentially more profit.
• How does employee motivation impact productivity levels?

  More motivated employees are likely to increase a business’ productivity levels.
• What is financial motivation in a business context?

  Motivating employees with money and things associated with money
• What are the main methods of financial motivation used in business?

  • Remuneration
  • Bonuses
  • Commission
  • Promotion
  • Fringe benefits
• What is remuneration?

  The money employees are paid in return for working in a business
• How does remuneration vary among different roles in a business?

  Different roles are rewarded with different levels of remuneration
• How much might a company director earn per year?

  £100,000 per year
• How much might a data entry clerk earn per year?

  £18,000 per year
• Why are pay rises important for employee motivation?

  They can make employees feel more motivated
• What is a bonus?

  A form of additional remuneration
• How might a salesperson in an electronics shop be motivated by a bonus?

  They might receive a £500 bonus for selling a large number of TVs
• What factors might determine the awarding of a bonus?


  Making a certain number of sales or creating a certain amount of revenue
• What is commission?

  Payment on top of a normal wage or salary to motivate employees
• How is commission typically calculated?

  As a percentage of a sale or a specified amount of money per sale
• If a salesperson sells a car for a profit of £10,000 and receives 25% commission, how much do they earn in commission?

  £2,500
• How does earning additional money through commission affect employee motivation?

  It often motivates employees to work harder
• What is a promotion in the context of employee motivation?

  A higher-ranking job with more responsibility and often a higher wage
• How does a promotion make employees feel?

  More valued by the business
• What are fringe benefits?

  Additional employment perks awarded to employees
• What are some examples of fringe benefits?

  • Free gym membership
  • Company car
  • Company mobile phone
  • Free holidays
  • Additional holiday allowance
  • Free parking or transport
  • Free food and drink
• How do fringe benefits differ from direct monetary compensation?

  They save employees money rather than providing them with additional money
• What are non-financial methods of motivation?

  Methods of motivating employees that do not involve money.
• Name three non-financial methods of motivation.

  Job rotation, job enrichment, and autonomy.
• What is job rotation?

  • Involves variety in day-to-day roles
  • Motivates by preventing boredom
  • Two types:

  1. Different job roles in the business
  2. Different duties within the same role
• How does job rotation help motivate employees?

  By providing variety and preventing boredom in their job.
• What is the first type of job rotation?

  Employees have different job roles in the business.
• Give an example of the first type of job rotation.


  An operator in a car manufacturing plant applying bumpers, lights, and wheels at different times.
• What is the second type of job rotation?

  Employees have a range of different duties within their role.
• Provide an example of the second type of job rotation.

  A software developer spending part of the day developing a website and part developing a software package.
• What is job enrichment?

  • Enhancing employees' roles with a wider range of tasks
  • Involves giving more responsibility
  • Allows for more decision-making
  • Employees remain at the same level in the chain of command