2.5, Financial Methods

Question 1

Remuneration

Answer 1

Money is paid to an employee for working, to ensure that staff are motivated in the workplace, it needs to make sure that they are paying their employees enough money to satisfy them. Even employees who are not mainly motivated by money still need to be paid well enough to feel satisfied

Question 2

Bonuses

Answer 2

Employees can receive bonuses, a bonus is an additional amount of money paid to an employee if they achieve a target or high level of performance. For example in the car industry this is common as they are focussed on making sales, they will receive a bonus of an amount of money on top of their wage or salary in return.

Question 3

Commission

Answer 3

Employees can receive a commission, a commission is an extra amount of money paid to an employee , usually if they make a certain number of sales. For example in finance industries an employee is given an amount of money for each product or service that they sell.

Question 4

Promotion

Answer 4

Employees can receive a promotion, a promotion is when an employee is given a more senior role in a business or organisation. A business can offer promotion as a financial method of motivation, because promotion usually comes with an increased salary.

Question 5

Fringe Benefits

Answer 5

Fringe benefits are benefits offered by the business that financially benefits the employees. They often include :

• A company car
• Meal vouchers for lunch
• Free health insurance
• Contributions from the company to their pension
• Free travel or parking
• Free gym membership
• Corporate Parties / Entertainment
• Accommodation
• Free childcare
• Vouchers for shops or services