Motivation

Fringe benefits are regularly used especially in the case in the executive, management and professional area, where there can be a lot of stress and pressure. Often fringe benefits can be used as rewards. For the employee, receiving benefits rather than pay might also be preferred instead of them having to fund for it themselves out of there own pocket. Fringe benefits help motivate staff due to the benefits often being of some value; it gives the workers something to work towards. Especially if aiming for promotion because usually at higher stages in a company hierarchy the fringe benefits become better and more appealing. Despite their attraction, fringe benefits can cause status problems. Where the member of staff gaining the benefit will become motivated, staff who are not receiving fringe benefits may feel a small part of the company and the morale may lower. .
             Secondly payments schemes are were employees will work and the more successful they are, or more they produce the more money they get paid or a bonus will be received at the end of it. This is a good way of getting employees to work; workers will want to usually earn more money, the way to do this would be to work harder. The level they work is the level of pay they get. It is a way of earning money instead of being able to sit back and do little work and still get paid for it. It motivates workers to actually work with the opportunity for greater pay. This method would not work for all people. If a member of staff was slower than the rest or not as well trained they would be slower at the job they do which would mean less pay than other workers. This could be very demoralizing for that member of staff and may mean lack of belonging and happiness at work.
             Thirdly Incentive schemes are a way of motivating staff. Paying money for more output can be an incentive to make workers work harder. Incentive payments have been widely used in the management of manual workers in the past.