Financial Rewards Flashcards
What’s the difference between wages and salaries?
A salary is a fixed amount that is paid every month, whereas a wage is worked out by the amount of hours done
Staff and firm know exactly how much they are being paid for a salary, however it is not performance related
What is performance related pay?
The amount an employee earns depends on how hard they work
What’s commission?
Where sales staff earn a basic salary, then they are paid extra for the number of items they sell
What is a bonus? When is it paid?
It’s a lump sum that is added to an employee’s pay if they have met their targets
It’s usually paid yearly
What’s profit sharing?
When staff receive a part of any profits made by the business
Why are temporary workers and freelance staff useful to a business?
How are they paid?
They can help with short term tasks- flexible
They are paid for a fixed period of weeks or months- temporary workers are often found through agencies for a fee, freelance are self employed
What’s the problem with temporary workers?
Agencies charge a fee
They may not feel committed to a business- unmotivated
