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State and explain two financial methods of rewarding employees - AQA - GCSE Business - Question 12 - 2023 - Paper 1
Question 12
State and explain two financial methods of rewarding employees. Method 1: Method 2:
Worked Solution & Example Answer:State and explain two financial methods of rewarding employees - AQA - GCSE Business - Question 12 - 2023 - Paper 1
Step 1
Method 1: Bonus
Answer
A bonus is a financial reward given to employees for meeting certain performance targets. It acts as an incentive, encouraging employees to achieve their goals and contribute positively to the company. By rewarding employees with bonuses, companies can promote high performance and motivate staff to exceed expectations.
Step 2
Method 2: Commission
Answer
Commission is a payment made to employees based on sales they generate. It typically encourages employees, particularly in sales roles, to increase their performance and rewards them directly for the revenue they bring in. This method aligns the interests of the employee with those of the company, as higher sales lead to increased earnings for both.