Financial and Non Financial Motivators

Topics: Employment, Motivation, Wage Pages: 4 (1554 words) Published: February 9, 2011
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...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • financial Essay
  • Essay about financial
  • Financial and Non Financial Incentives Essay
  • Essay about Financial and Non-Financial Incentive Motivators
  • The Impact of Non-Financial Resources Essay
  • financial planning Research Paper
  • Financial intermediaries Essay
  • financial managment Essay

Become a StudyMode Member

Sign Up - It's Free