Financial Rewards Flashcards
financial reward
various methods that
businesses use to motivate workers that involve some
form of monetary payment
salary
financial rewards set at a fixed annual rate but paid on a regular basis (weekly, monthly)
wages
reward for labour services usually expressed as an hourly rate or as a measurable quantity of output (piece rate)
time-rate system
a method of remuneration where workers are paid based on the hours worked
piece-rate system
when workers are paid by the units produced instead of hours worked
formal appraisal system
primary evaluation of an employee’s performance at a specified time
commission
pays workers based on a proportion (percentage) of sales or output contributed by a worker
profit-related pay
involves linking remuneration to level of profits in the organisation (the greater the profits, the higher the pay)
performance related pay
rewards employees (as individuals, teams or as a whole workforce) who meet certain goals
pay rise
increase in a person’s remuneration due to meeting or exceeding pre-determined and pre-agreed
performance targets
performance bonus
paid as a one-off reward to workers who have reached or exceeded output or quality targets
gratuity
paid to staff who complete their employment contracts
fringe payments
monetary benefits to employees in addition to their wages or salaries (health insurance, housing allowance, staff discounts, gym membership, etc)
employee share ownership schemes
payment system rewards workers, by giving them shares in the company or by selling the shares at
a discounted price
