There are two types of motivating factors (Financial and non-financial rewards)

1. Financial Rewards/ Motivators
Non-Financial Rewards/ Motivators
Motivating factors

2. Motivating factors
Group discussion:
Identify one non-
financial motivation
you would like to
have when you are
working with this
job. Explain why?
Finance Manager

3. Motivating factors
Group discussion:
List as many non-
financial motivators
you may find from
the video clips:
Working in
GooglePlex

4. Financial Factors
Definitions to learn
Wage is
payment for
work, usually
paid weekly

5. Financial Factors
Wages
Advantages:
1)The workers gets paid on a regular basis
Exp: Wages tend to be paid weekly to the
workers
2) Workers will be paid overtime if works
longer than normal hours
Exp: This is an incentive to work additional
hours when required by the business

6. Financial Factors
Wages
Disadvantages:
1)It takes time to calculate the wages.
Exp: This is because wages are paid weekly, the
Human Resource clerk needs to calculate wages for
every employees weekly.
2) Wages clerk need to be hired.
Exp: Clerks need to be hired to manage the payroll.

7. Financial Factors
Time rate
Advantages:
1)It is easy to calculate the worker’s wages
Exp: The workers know exactly what they will
be paid for working a certain period of time.
Disadvantages:
1)This system takes time.
Exp: The hour worked are often recorded on a time-
sheet which must be filled in and used to calculate the
wages by the Accounts Department.

8. Financial Factors
Time rate
Disadvantages:
2) Good and bad workers get paid the same
Amount of money.
Exp: Some workers might not be happy with this
system because it is not paid based on the worker’s
performance.

9. Financial Factors
Time rate
Disadvantages:
3) Supervisors need to be hired.
Exp: More supervisors are to be hired in order to
make sure workers keep working and producing a
good quality product.
4) A clocking-in system is needed in the company.
Exp: This is important in order to determine the
number of hours worked by the employees are being
recorded correctly.

10. Financial Factors
Piece rate
Advantage:
1)Employees are paid according to the output
produced.
Exp: This will encourage workers to work faster.
Disadvantages:
1)The quality of the goods might be ignored.
Exp: Workers may concentrate on making a large
number of products and ignore the quality.

11. Financial Factors
Piece rate
Disadvantages:
2) Conflict between employees regarding their pay.
Exp: Workers who are careful in their work will not
earn as much as those who rush, which may not be
seen as fair.
3) If the machinery breaks down, employees will earn
less money.
Exp: This is because, workers are often paid a
guaranteed minimum amount of money.

12. Financial Factors
Time Rate- payment for time
periodAdvantages:
1) Easy to calculate
Disadvantages:
1)Needs to record on time-sheet.
2)Good and bad workers get same paid.
3)Supervisor needs to monitor workers.
4)A clocking-in system is needed.

13. Financial Factors
Definitions to learn
• A salary is payment for work, usually paid
monthly.
• Commission is payment relating to the number of
sales made.
• Profit sharing is a system whereby a proportion of
the company’s profits is paid out to employees.
• Bonus is an additional amount of payment above
basic pay as a reward for good work.

14. Financial Factors
Definitions to learn
• Performance-related pay is pay which is related to
the effectiveness of the employee where their
output can easily be measured.
• Share ownership is where shares in the company
are given to employees so that they become part
owners in the company.

15. Financial Factors
Piece Rate- paid depending on the
quantity of products made.
Advantages:
1) Encourages workers to work faster.
Disadvantages:
1)May ignore the quality of products.
2)Workers who are careful will not earn as much.
Conflict among workers will happen.
3)If machinery breaks down, employee will earn less
money.

16. Financial Factors
Salaries- are paid monthly
Advantages:
1) It is paid for the job monthly basis
Disadvantages:
1)Extra work will not usually paid for.
2)It is fixed amount.

17. Other rewards added to basic salary
a)Commission
b)Profit sharing
c)Bonus
d)Performance-related pay
e)Share ownership
Financial Factors

18. Non-Financial Factors
Definitions to learn
Fringe benefits
are non-
financial
rewards given
to employees

19. Non-Financial Factors
Example
• Company vehicle
• Discount on the firm’s products
• Health care paid for
• Children’s education fees paid
• Free accommodation
• Share options (where company shares are
given to employees)
• Pension paid for by the business
• Free trips abroad/ holidays