Projectrevision.co.uk | Alevel coursework Project Alevel... Alevel subject: Biology | Business studies | Computing | Economics | Geography | Maths | Physics

Business studies> People> Objectives of pay

Examples of employer objectives of pay:

Motivation - Money is a good motivator to make employees work harder.

Controlling costs - Salaries are fixed costs so they are able to be planned and accounted for.

Recruitment - Good pay rates help to attract a large number of skilled workers.

Prestige - It makes the company look good if they are able to pay the highest rate and may help to attract investors.

Examples of employee objectives of pay:

Purchasing power - Gives the individual more money to spend and helps to act against inflation.

Recognition of effort - Rewards the effort that the person has put in.