3.5 Motivation and Retention Flashcards
What is motivation?
Motivation is how workers are encouraged to work hard.
What is retention?
When workers choose to stay with a firm, rather than move elsewhere.
What is labour turnover?
A measure of the number or proportion of staff who leave a firm each year and need replacing.
Define productivity.
A measure of the output per worker in a given period of time. It is a way of measuring the performance of the workers.
Define profit sharing.
When workers receive some of the profits made by the business.
What is a bonus?
An additional payment given to workers for achieving a target.
What are fringe benefits?
Additional benefits that workers receive on top of their pay e.f. pensions, childcare vouchers, subsidised canteen meals.
What is praise?
A method of motivating workers by complimenting their work and thus making them feel recognised and valued.
What is an award scheme?
A presentation of some kind to recognise somebody’s efforts.
What is the working environment?
The quality of the physical workplace.
Why is employee motivation and retention important? (Give 4 reasons)
High performing employees. High retention and low labour turnover. Easier recruitment of new workers. Less need to supervise workers. Lower absenteeism. reduced waste of raw materials. Better products and services. Increased custom.
What are the benefits of high labour retention?
Lower costs of recruiting and training staff.
Workers are familiar with the business and work better.
Good morale.
Good indicator for new recruits.
List four methods of financial motivation.
Pay
Bonus
Profit sharing
Fringe benefits
List three methods of non-financial motivation.
Praise
Award schemes
Working environment
