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Explain the different types of financial and non-financial rewards for employees in a business. - Leaving Cert Business - Question (B) - 2013
Question (B)
Explain the different types of financial and non-financial rewards for employees in a business.
Worked Solution & Example Answer:Explain the different types of financial and non-financial rewards for employees in a business. - Leaving Cert Business - Question (B) - 2013
Step 1
Financial Rewards
Answer
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Time Rate: This is a payment method where employees are paid a fixed amount for each hour of work, including overtime rates for hours worked beyond a predetermined minimum. This ensures that employees are compensated for every hour they work.
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Piece Rate: Under this scheme, employees receive payment based on the quantity of work they produce. The more items produced or tasks completed, the higher the payment.
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Bonus: Bonuses are additional payments made to employees upon achieving specific targets or objectives, which can motivate them to enhance productivity.
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Commission: This is a financial reward linked to sales performance. Employees receive a percentage of sales made, which can encourage them to boost sales figures.
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Profit-sharing Scheme: In this scheme, employees receive a share of the company’s profits, promoting a sense of ownership and incentivizing employees to contribute to the company’s success.
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Employee Share Ownership Scheme: Employees can be awarded shares in the company, which increases their investment in the firm’s success, aligning their interests with that of the company.
Step 2
Non-Financial Rewards
Answer
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Benefit-in-kind: This includes perks such as company cars or health insurance rather than monetary rewards. Such benefits can enhance employee satisfaction and retention.
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Promotion: Advancement opportunities provide employees with enhanced status and responsibilities, which can be motivating factors.
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Job Satisfaction: Fulfilling work and a sense of achievement can drive employee engagement. Opportunities for creativity and responsibility play a role in job satisfaction.
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Flexibility: Providing flexible working hours or remote work options allows employees to balance personal and professional life, leading to higher morale and productivity.
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Work-life Balance: Supporting employees in achieving a healthy work-life balance, especially through flexible scheduling, can enhance overall job satisfaction. This acknowledgment of individual needs can contribute to a more motivated workforce.