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Motivation
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Motivated staff work harder, stay longer and help the business succeed. Businesses use money and other methods to motivate them.
Why motivation matters
Attracting employees: good pay and conditions bring in good applicants.
Retaining employees: happy staff stay, cutting recruitment and training costs.
Productivity: motivated staff produce more and better work.
Retaining employees: happy staff stay, cutting recruitment and training costs.
Productivity: motivated staff produce more and better work.
Financial methods
Remuneration: pay, as a wage (hourly) or a salary (yearly).
Bonus: an extra payment for meeting targets.
Commission: a percentage of the value of sales made, often for sales staff.
Promotion: a higher position with more pay.
Fringe benefits: extras such as a company car, gym membership or staff discount.
Bonus: an extra payment for meeting targets.
Commission: a percentage of the value of sales made, often for sales staff.
Promotion: a higher position with more pay.
Fringe benefits: extras such as a company car, gym membership or staff discount.
Non-financial methods
Job rotation: moving staff between tasks to reduce boredom.
Job enrichment: giving staff more challenging and responsible work.
Autonomy: giving staff freedom to decide how to do their work.
Job enrichment: giving staff more challenging and responsible work.
Autonomy: giving staff freedom to decide how to do their work.
A salesperson earns 5% commission on sales of £40 000. How much commission is earned?
- 5% of 40 000 = 0.05 × 40 000
Answer: £2000
Motivation helps attract and retain staff and raises productivity. Financial: pay, bonus, commission, promotion, fringe benefits. Non-financial: job rotation, job enrichment, autonomy.
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