Which pay option is commonly used to motivate staff?

Boost your IGCSE Business Studies score by focusing on Section 2 – People in Business. Use flashcards and multiple-choice questions with explanations to prepare for your exam!

Multiple Choice

Which pay option is commonly used to motivate staff?

Explanation:
Linking pay to performance is a powerful way to motivate staff. Commissions are earned as a proportion of the sales an employee makes, so more effort leads to more pay. This direct link between actions and rewards makes salespeople push harder to reach targets, which benefits the business by boosting sales. Other methods have limitations: a fixed salary or wages stays the same regardless of performance; overtime pay rewards extra hours but not overall performance; while bonuses can reward achievements, they are often irregular and less tied to ongoing effort. Because of the continuous, performance-related nature of commissions, they are commonly used to drive motivation, especially among sales staff.

Linking pay to performance is a powerful way to motivate staff. Commissions are earned as a proportion of the sales an employee makes, so more effort leads to more pay. This direct link between actions and rewards makes salespeople push harder to reach targets, which benefits the business by boosting sales. Other methods have limitations: a fixed salary or wages stays the same regardless of performance; overtime pay rewards extra hours but not overall performance; while bonuses can reward achievements, they are often irregular and less tied to ongoing effort. Because of the continuous, performance-related nature of commissions, they are commonly used to drive motivation, especially among sales staff.

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