3.5 Motivation And Retention Flashcards
What are the different methods of financial motivation?
•Pay
•Bonuses
•Profit Sharing
•Fringe- Benefit
What is pay?
A wage is usually paid weekly and is based on the number of hours worked
What are the advantages of pay/wages?
•motivates workers as they receive a regular income
•it motivates them to work more because the more they work the more they recieve
What are the disadvantages of pay/wages?
•it only rewards workers for how long they work and not how well
What are bonuses?
A payment a worker receives in addition to their pay
What are the advantages of bonuses?
•it motivates workers because the more they produce or sell the more they earn (increases productivity)
•motivates them to reach particular targets
What are disadvantages of bonuses?
•if targets are not fair or realistic workers will not feel motivated
What is profit sharing?
When workers are paid part of the profits of the business
What are the advantages of profit sharing?
•it motivates workers because they know if they work efficiently the business will earn more profit increasing their income
What are the disadvantages of profit sharing?
• reduces profits for shareholders
What are fringe benefits?
Benefits given to workers on top of their pay e.g. free gym membership
What are advantages of fringe benefits?
•helps business retain workers as they won’t want to lose the benefits
What are the disadvantages of fringe benefits?
•they are a cost to the business so may reduce profits
What are non financial methods of motivation?
•praise
•award schemes
•working environment
What is praise?
Workers are acknowledged and appreciated for the work they’ve been done e.g. through an email, thank you card or verbally
What are advantages of praise?
•it makes workers feel appreciated and valued
•Those not praised may feel encouraged to do better in order to receive praise
What are the disadvantages of praise?
Sometimes if there is not financial reward for a long period of time workers may feel less valued demotivating them
What is an award scheme?
When workers are presented with a reward for their work e.g. certificates or a voucher
What are advantages of an award scheme?
•makes workers feel valued
and more motivated
•will encourage them and others to continue to increase productivity to recieve the reward
What are the disadvantages of an award scheme?
•there is some cost to them
•they need to be given fairly or something workers may feel upset and demotivated
What is the working environment method?
Improving working environment so it is a pleasant place to work e.g. listening to people and giving them a say
What are the advantages of a good working environment?
•helps business retain workers as they feel their options are valued and that they’re being listened to
•if workers feel valued they’ll respect the business creating a positive attitude to work
What are the disadvantages of a good working environment?
It may have some cost e.g. improving furniture or paying for activities
What are advantages of improved motivation?
•lower abteeism - workers will have a positive attitude to work and will be less likely to take days off
•improved quality and productivity
•reduced levels of supervision of workers- businesses may not have to recruit as many supervisors as workers will want to do their job well already
What are the advantages of improved retention?
•saves money on recruitment costs
•saves money on induction training
•leaves the business with a good reputation so it will be easier to recruit new workers
