There are two methods of motivating employees. They can be motivated either through financial or non-financial rewards or both.
Most employers provide both financial and non-financial rewards.
Financial rewards are;
Wages – time rate, piece rate
Performance-based financial rewards
Employee share ownership
Non-financial rewards/Fringe benefits
Discounts on products or services
Discounted interest on mortgage loan
Free accommodation or allowances
Country Club, Gym or Spa memberships
As important as motivation is important to a firm, the cost of financial rewards are also a cost to the firm. As such, most firms would aim to reduce cost, while increasing productivity by providing non-financial rewards.
PAST YEAR QUESTIONS
Identify and explain two non-financial methods of motivation (6 marks) Feb/Mar 2018/12
Explain two ways to improve employee motivation (6 marks) May/June 2018/11
State two ways of motivating employees (2 marks) May/June 2020/11