Friday 24 January 2014

4.2 People in business - Rewarding employees

10/10 key term test on employee reward

  1. Skills - some jobs need specialised skills whereas others do not.  Employees will have developed their skills in practical activities and these will have been improved on over time.  The more skilled a worker the more he or she is likely to be paid examples include paint spraying, cooking skills etc
  2. Experience - a worker with many years of experience of doing a job will expect to get paid much more than someone with very little experience.  Experience workers generally saves an organisation time, money and less mistakes
  3. Competitive marketplace - employers will need to know what other businesses in the same market are paying their staff so that they can pay a competitive amount if they are to attract and retain their staff.
  4. Wages - when an employee is paid a fixed amount for each hour or day that they work
  5. Salary - When an employee is paid a fixed amount per month or year regardless of how many hours they work.
  6. Pensions - Payments made to retired workers .  In addition to the state pension businesses are expected top offer their own pension scheme.
  7. Training and development - most employees leave a company because they do not have a clear training and development plan that they can be a part of.  The best companies allow their employees to use some of their rewards on securing additional training and development opportunities
  8. National minimum wage - this is a minimum pay set by the government and is currently £6.31 per hour for anyone over 21 years of age.
  9. Monetary (financial) rewards - Rewards that is generated through being paid more money for working harder e.g. profit share, bonus, incentives, piece rate.
  10. Non monetary rewards - Rewards which do not involve cash or financial incentives e.g. free uniform, discounted shopping, subsidised transport, childcare, additional holidays, meals on duty, private medical cover, 
Learning objectives
  • Understand the factors that influence the levels of wages / salaries paid to workers
  • understand the use of other monetary benefits
  • Understand the use of non monetary benefits

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