Financial and non-financial motivators
Introduced| English | Meaning |
|---|---|
| piece rate/piːs reɪt/ | piece rate |
| commission/kəˈmɪʃn/ | Payment linked to sales or transactions, often calculated as a proportion of their value. |
| bonus/ˈbəʊnəs/ | bonus |
| profit-sharing/ˈprɒfɪt ˈʃeərɪŋ/ | profit-sharing |
| salary/ˈsæləri/ | salary |
| fringe benefits/frɪndʒ ˈbenɪfɪts/ | fringe benefits |
| job enrichment/dʒɒb enˈrɪtʃmənt/ | Redesigning a role to give employees more meaningful responsibility, challenge or decision-making authority. |
| job rotation/dʒɒb rəʊˈteɪʃn/ | job rotation |
| enlargement/enˈlɑːdʒmənt/ | Increasing the number or variety of tasks within a job, without necessarily increasing its level of responsibility. |
| empowerment/emˈpaʊəmənt/ | Giving employees authority and resources to make decisions affecting their work. |
| recognition/ˌrekəɡˈnɪʃn/ | Acknowledgment or appreciation of someone's contribution, effort or achievement. |
| commitment/kəˈmɪtmənt/ | commitment |
Beyond the pay packet
- If money were everything, a pay rise would fix every motivation problem. It doesn't.
- Smart firms use a mix of financial and non-financial methods to get the best from people.
Motivation methods lab
Compare financial and non-financial ways to raise effort.
Paying a worker a fixed amount for each unit they produce is:
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Piece rate links pay directly to output.
A salesperson paid a percentage of each sale earns ______.
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Commission rewards sales made.
Financial motivators
- Piece rate 计件工资: pay per unit produced. Commission 佣金: pay per sale.
- Bonus 奖金 and profit-sharing 利润分享: reward results. Salary 薪水 with fringe benefits 附加福利.
Motivators are either financial (money) or non-financial (better work)
Which are non-financial motivators? (Select all that apply.)
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Commission is financial; the rest are non-financial.
Giving employees more challenging and responsible work is:
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Job enrichment deepens the role to motivate.
Non-financial motivators
- Job enrichment 工作丰富化: more challenging, responsible work.
- Job rotation 工作轮换 and enlargement 工作扩大化: more variety.
- Empowerment 授权, teamwork, and praise/recognition 认可.
Worked example. A call centre with high staff turnover raises pay (financial) but turnover stays high. Adding team targets, recognition and career paths (non-financial) finally lifts motivation — pay alone wasn't the problem.
Most firms use a mix of financial and non-financial motivators.
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A blend matched to the job works best.
Choosing the right mix
- Financial methods suit simple, output-based jobs; they can be costly and short-lived.
- Non-financial methods suit skilled, creative work and build lasting commitment 投入.
You've got it
- financial motivators: piece rate, commission, bonus, profit-sharing, fringe benefits
- non-financial motivators: job enrichment, rotation, empowerment, recognition
- the best approach is usually a mix matched to the job