Commission
A formal written warrant or authority, granting certain powers or privileges and authorizing or commanding the performance of certain duties.
Piece Rate
Paying by the number of items produced.
Overtime
Extra pay for work done over and above normal working hours. It is usually paid at a higher hourly rate.
Shift Payments
Usually paid for working unsocial hours such as night work.
Bonus Payments
A special single payment for achieving a target.
Profit Sharing
A percentage of the profit made by the company is shared amongst the workers.
Paying extra money for jobs with difficult hours will usually encourage people to apply for the work.
A loyalty bonus can be used to persuade workers to stay with their employer for a long period of time. Employees may not want to work longer than their contracted hours but they can often be persuaded to do so by receiving a higher rate of pay.
A fringe benefit is a payment in kind. Instead of giving money the employer might provide:
- cars
- health insurance
- free uniform
- discounted products
- first class travel
- pension
It is often cheaper for the employer to provide goods rather than the money to buy them with. A good fringe benefit will make an employee reluctant to leave the business.
Keeping staff motivated is good for a business because motivated workers are more productive and higher productivity usually means higher profits.
In a service industry, workers who are well motivated will provide a better level of customer service, keeping the customers happy.
Staffs who are well motivated are more likely to stay with the company. They grow in experience and become even more valuable to their employer.
If a business successfully keeps the staff it has, the cost of recruiting and training new staff is reduced
