QUESTION 4- Identify examples of financial and non-financial rewards?

Financial rewards are something given or received in recompense for worthy behavior or in      retribution for evil acts.  Financial rewards are the pay and benefits that workers receive in return for work, though others might include praise from superiors and a sense of career progression. Furthermore, financial rewards are also advantageous to employees because they increase the likelihood of personnel staying with the company, allowing employers to retain experience and knowledge base, and providing workers with a measure of familiarity and stability. An employee who earns enough to cover his basic needs and some extra will be less likely to give notice and look for another job, saving himself the stress of a job search and saving his employer the hassle of having to replace a valuable worker.

Non financial rewards, in employment, a reward to a worker other than extra pay. Many non-financial rewards are perks such as company cars, free private medical care, and free pension entitlement. However, an employee may be rewarded, for example, by being given a better office or a bigger budget to control, or by being given the choice of where to take a posting in a company. Non-financial rewards can be very cost-effective for companies because, in contrast with a pay increase, little or no income tax or national insurance contributions are paid.

Examples of financial rewards;

·         Bonus

 A bonus is a supplemental payment as an incentive or reward for hard work, it is often connected directly to performance, such as generating more sales or motivating a production line to meet or exceed a quota.  Knowing there is a tangible financial reward for increased productivity can be precisely the kind of motivation many employees need.  Employees can use the promise of bonus pay to entice managers to motivate their subordinates towards a specific goal.  Sometimes simply maintaining an accident-free work environment can result in a performance bonus for supervisors’ managers.

·         Allowance

Allowance is money you get on a regular schedule.  Strictly, speaking allowance means money you just get.  It's different from money that you earn by working.  That money is called wages. 

·         Pensions

In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment.

·         Wages and salaries.

This wages are paid per hour worked and workers receive money at the end of the week. Then salaries are annual based on year’s work and are paid at the end of each month.

Examples of Non-financial rewards;

·         Praise for a good work

To congratulate employee for work well done.

           

             

·         Challenging work 

            

            It is a challenge that employees make to have the best performance at work.

·         Career opportunity

           Provide promotional development opportunities and training to improve performance.

           

·         Recognition

          Non-financial rewards may take the form of recognition, letter of appreciation or      certificate of commendation, souvenirs or medals.