Motivation is essential in any business. This can be done through a variety of motivational factors like wage or salary increases so the business gets maximum efficiency out of a worker. An employee reward system motivates employees to perform at their highest level and also encourages employees to take pride in their work.
Monetary rewards are a financial type of reward given to the the employees in order to motivate him or her. A possible way of doing this is through profit sharing. A salary usually is a fixed amount of money but a wage can change and go up and down monthly or even weekly. Also another monetary reward is performance related pay. E.g. a worker gets paid £4 per pair of shoe made if he makes 6 pairs he will get paid £30.This is a theory x based type of motivational factor.
Monetary incentive is a money-based reward given when an employee meets or exceeds expectations. Incentives can include cash bonuses, stock options, profit-sharing and any other type of reward that increases an employee's compensation. Incentives are generally awarded for a job well done and are often something that the employee can strive for. These are usually offered in the form of some type of bonus.
Profit sharing is when members of the organisation receive a certain amount of the profit. This gives the employees a sense of belonging and empowers them resulting in them being more productive and working to the highest standard possible. It encourages employees to stay put because it is usually structured to reward employees who stay with the company; most profit-sharing programs require an employee to be assigned in the program over a number of years before receiving any money.
One way some businesses reward their employees is through bonuses. This can be through meeting sales or completing a project on time. Also some organisations reward their employees with Christmas bonuses to reward their employees the longer they have been with the company the more the bonus.
Performance related pay is also a monetary reward. This is because some companies offer their employees pay raises for reaching certain production levels. These are usually offered factories where items are being assembled or packed. This increases work levels and makes workers work to a high standard.
Non-monetary rewards are non-financial awards usually rewarded after an employee has done a good job. These are bonuses to motivate the worker so he or she works hard.
Allowing an employee paid time off work gives the employee the chance to take time off without having to worry about his or her income. This can be rewarded for maintaining high attendance levels.
Another non-monetary rewards factor is training. Employees may contribute more time and effort if they have more chances to go to development skill programmes. Courses can be used to improve the employees skills so then in the working environment the employee can work to a lot higher standard.
Employee promotion opportunities encourage job productivity as it allows the workers to work at the best standard possible as there is an increase in role, status, authority and wage.
Job security is used to motivate employees. This also allows workers to stay loyal to an organisation and not move work place as they have a secure job and can look to gain promotions and advancements within a work place.
Recognition of an employee is a great way to increase morale within a work place. This is because the workers will work to their maximum ability knowing he or she can be recognised and commanded for their efforts.
Job security is used to motivate employees. Also this allows workers to stay loyal to an organisation and not move work place as they have a secure job and can look to gain promotions and advancements within a work place.
Recognition of an employee is a great way to increase morale within a work place. This is because the workers will work…