Financial and Non Financial Motivators

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What financial and non financial motivators are used to motivate employees? Introduction
It is important that a company makes the employee feel motivated. There are many reasons as to why they should do this. One of the reasons is that if an employee does not feel motivated then they may feel that their job is quite boring and therefore as a result of this they may decide to leave the employment and resign. If they do this, this would cost the company money to hire and recruit a new employer as they would have to repeat the process of recruitment and selection all over again. Also it will make the company look bad and their business name will have a bad reputation with the public if too many of their staffs are leaving their employment. Moreover, it helps to ensure that the workers work to the best of their ability. Financial

One of the financial motivators is wages and salaries. If employees are paid more wages if they produce work of a more higher standard than they are more likely to be motivated to work harder and to meet their set target if not exceed even further then it. Employees may even do overtime as some companies pay extra wages for overtime workers. Salaries are the total income a person receives at the end of year. To help motivate an employee even more than a company may increase the salary of a worker. An advantage of this is that it is simple and easy to use. However the disadvantage for this is that workers who are getting paid the same may have hard feelings about another colleague they feel doesn’t work as hard as them. Another financial motivation is the use of piece-rate. This is when a company pays its employee/employer for every piece of work they get in on time. An example of an industry which specializes in this area is the sewing industry. For each piece of item of clothing that an employee makes in time for an order the higher quantity they receive. An advantage of using this technique to help motivate employees is that it increases the speed of how fast the employers work and as a result of this the amount of work that they produce will also be increased. Another advantage is that workers do not be allowed to have sick pay or holiday pay so this will reduce the expenditure costs for the company. However there are also disadvantages o this financial motivation such as work on the quality of the work that they are producing as they will be too anxious about getting the job finished and handing in the overall product in on time. Another disadvantage is that due to the eagerness of getting the task finished workers may fail to remember the rules and regulation of the company such as the health and safety policy. In addition, another motivation via the use of financial motivation is fringe benefits. These are objects that an employee receives a reward for all their hard work. This can include items such as a company car, private health insurance, free meals etc. an advantage of using this procedure is that encourages company loyalty so that the workers may be persuaded to stay on for longer. It also helps to meet an employee’s human and social need. However there is also a downside to using this method which is that due to high numbers of employees it may cost the company quite a lot of money. An example of a job that uses this is a driving instructor as they get to drive a company car. Furthermore, a company could also use the method of profit sharing to help motivate their employees even further. This is when employees receive a proportion of the business’s profits. This means that staffs would hold the same position as the shareholders. An advantage of using this procedure is that it should break down the barrier between an employee and an employer as their will be as sense of equalisation. However, on the other hand there are also disadvantages to suing this method. One of them is that sometimes the share that is given to the employee may not be enough for them and this may not motivate...
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