It comprises of all rewards that have monetary value.
Fixed amounts per month or year for performing a role; these are common for most managerial
positions (e.g.Accountant, Payroll Manager)
(ii) Employee Benefits
Very common in businesses of all kinds; these include:
- staff discounts
- contributions to travel costs
- staff uniforms
- sick leave: (encourage employees not to take unnecessary sick leave, unused sick leave is
being paid cash),
- productivity bonus
- attendance bonus
- Pensions: When you retired you get some reward.
(iii) Time-rate pay
Pay based on time worked; very common in small businesses where employees are paid per hour.
(iv) Piece-rate pay
Pay per item produced – becoming less common
Payment based on the value of sales achieved.
(vi) Other performance-related pay:
E.g. bonuses for achieving targets
(vii) Contingent Pay
Additional financial reward may be provided that are related to performance, competence,
Non Financial Reward
They are those that focuses on the needs of people have to varying degree for recognition,
achievement, responsibility, autonomy, influence and personal growth.
(i) Job enlargement
Job enlargement involves adding extra, similar, tasks to a job.
1 In job enlargement, the job itself remains essentially unchanged. However, by widening the
range of tasks that need to be performed, hopefully the employee will experience less repetition
Apossible negative effect is that job enlargement can be viewed by employees as a requirement
to carry out more work for the same pay.
(ii) Job rotation
Job rotation involves the movement of employees through a range of jobs in order to increase
interest and motivation.
For example, an administrative employee might spend part of the week looking after