Types of Financial rewards

Salaries are fixed costs for a business.

• True

• False

Wages are variable costs for a business

• True

• False

Salaries are predetermined financial compensation paid to employees.

• True

• False

Wage payments are dependent on the time or output of employees

• True

• False

Salaries are always paid monthly whereas wages are paid weekly.

• True

• False

Piece rate wages help to increase productivity so can be useful for motivating workers.

• True

• False

An employee share ownership scheme offers workers some of the shares in the company so helps to motivate workers and develop employee loyalty

• True

• False

Employer contributions to employee pension schemes is an example of non-financial rewards.

• True

• False

Performance-related pay often comes in the form of cash bonuses if an employee or team meets or exceeds pre-agreed and predetermined targets.

• True

• False

Profit-related pay can be costly to a business because the profits earned are shared with employees.

• True

• False