Financial and non-financial motivators
Financial motivators
- Rewards paid in money:
- wages (per hour/week), salary (fixed yearly),
- piece rate (per unit), commission (per sale),
- bonus (extra for results), profit sharing,
- performance-related pay, fringe benefits (car, health care).
Practice
Pay based on how much an employee sells is called:
Commission is pay linked to sales; a salary is a fixed yearly amount.
Non-financial motivators
- Reward without extra money, by making work better:
- job enrichment — more challenging tasks and responsibility,
- job rotation — moving between tasks to reduce boredom,
- job enlargement — more tasks at the same level,
- empowerment — letting staff make their own decisions,
- teamworking — teams sharing goals.
Practice
Job enrichment means:
Job enrichment adds challenge and responsibility — a non-financial motivator.
Practice
Classify each motivator.
A bonus is money (financial); empowerment improves the work itself (non-financial).
You've got it
Key idea
- financial: wages, salary, piece rate, commission, bonus, profit sharing, fringe benefits
- non-financial: job enrichment, rotation, enlargement, empowerment, teamworking
- non-financial motivators make the work itself more rewarding