Ways to Motivate Employees (AQA GCSE Business)

Basic wages or salary that a worker receives for their labour

Employees who work on an hourly rate are paid wages and accrue benefits such as annual leave according to the hours they work

Salaries are paid to full-time staff and usually accompanied by benefits such as a fixed number of days of annual leave

In some businesses, piece rates are paid to employees for each item produced

A percentage of sales revenue is paid to workers who sell products or services

Commonly used in sales roles to motivate staff to sell more and upsell

• E.g. Staff at electrical retailer Currys receive a commission for each item they sell, with greater rewards for add-on services such as extended warranties

An additional payment given to staff for achieving specific goals, completing projects on time or exceeding performance expectations

The opportunity to earn more money may motivate staff to work harder and achieve better results

• E.g. British Gas offers generous bonuses to engineers who meet or exceed expectations related to customer service

A business may decide to share a proportion of its profits with workers

Employees are motivated by the chance to benefit from the overall success of a business

• Publisher Bloomsbury rewarded its employees with bonuses of around 6% of their salary following outstanding business performance in 2022

Promotion usually demands a higher level of responsibility from an employee in the job role

• Higher pay is usually offered to reflect the increased responsibility

A clear promotion pathway can motivate workers to improve performance

These are additional benefits usually offered to salaried employees

• Fringe benefits could include the use of a company car, private healthcare or gym membership

Employees are motivated to work hard in order to keep their job and the associated fringe benefits

• E.g. Dunelm Mill Ltd offers staff generous discounts on its homewares

Providing good quality training that enhances employees' skills can make them feel valued

In some cases, workers have the opportunity to work toward formal qualifications, such as a a degree or professional certificate, funded by the business

• E.g. Kennedy's Law funds law degrees for its apprentices

This involves giving staff the authority and resources to make decisions and take action without first receiving management approval

• It increases employees' sense of ownership and responsibility, leading to improved productivity

This involves adding more challenging or meaningful tasks to a job

Staff feel more motivated and engaged, leading to improved productivity

This involves moving staff between broadly similar but varied roles in the business

It exposes staff to new challenges and experiences, which can increase motivation, understanding and skill