Retaining and Motivating Staff

Question 1

Why is it important to retain and motivate staff?

Answer 1

• Higher rates of productivity or output
• Better quality output
• Lower rates of absenteeism
• Lower rates of labour turnover (staff leaving the organisation)

Question 2

Main factors affecting motivation of staff?

Answer 2

• Pay levels
• Job security
• Promotional prospects
• Being given responsibilities
• Working conditions
• Participation in decision making

Question 3

Financial methods of motivating and retaining staff?

Answer 3

• Time rate or flat rate schemes
• Piece rate schemes
• Commissions
• Profit training
• Performance-related pay (PRP)
• Bonus
• Overtime

Question 4

What is a time-rate or flat-rate scheme?

Answer 4

This is when the employee get paid by how long they work for example £5 an hour

Question 5

What is a piece-rate scheme?

Answer 5

This is when the employee get paid by every unit they product, this is linked to their productivity level

Question 6

What is commission?

Answer 6

This is a common method of payment for sales staff, for example insurance and double glazing. Employees would receive 0.5% of the value of the good/service.

Question 7

What is Profit Sharing?

Answer 7

This involves each employee receiving a share of the profit of the business each year.

Question 8

What is Performance-Related Pay (PRP)?

Answer 8

This is when an individual who has achieved a certain number of targets over the past year will be given a pay rise.

Question 9

What is Delegation?

Answer 9

When a managers pass a degree of authority down the hierarchy to workers on the ‘shop floor’. This allows workers to trust them