SECTION 2 WORK The reward for work GCSE ECONOMICS: UNIT 11 Part One

SECTION 2 WORK Aims of today’s lesson … Identify how people are paid and rewarded for working Analyse the rewards for work in context

SECTION 2 WORK How people are paid People are paid for the labour they supply Generally people are paid more the longer they work, however there are a number of different ways that people are paid for their labour

SECTION 2 WORK How people are paid: Salary Salaries are stated as yearly earnings The salary is then divided by 12 and this amount is paid monthly For example an employee on a salary of £36,000 will be paid £3000 a month Salaries tend to be paid to full time workers although it is not uncommon for part-time employees to be paid a salary Jobs which pay salaries tend to be skilled and non-manual in their nature e.g. teachers, nurses and doctors

SECTION 2 WORK How people are paid: Wage Wages are calculated as an hourly rate and multiplied by the number of hours worked Wages tend to be paid weekly Wages tend to be paid for lower-skilled jobs, part-time or temporary work

SECTION 2 WORK How people are paid: Commission Employees who are paid commission receive payments for meeting certain targets These targets are often linked to sales e.g. selling 10 cars in a month may mean a car salesman receives 10% commission An employee who adds to a company’s sales will often receive a percentage of the sales value as reward e.g. 10% of the value of the 10 cars they sold Commission acts as an incentive to employees to achieve more sales Employees can be paid partly or fully on commission

SECTION 2 WORK How people are paid: Overtime payment Businesses sometimes require employees to work longer hours This is usually the case when production of a product needs to be higher than usual Rather than hiring more workers, a company will encourage its workforce to work longer hours In order to give up their leisure time employees are paid at a higher wage rate for these extra hours These extra payments are known as overtime payments

SECTION 2 WORK How people are paid: Shift work payment Some workers will not work the traditional ‘9 until 5’ but rather work shifts This often occurs when a business needs to be kept open for longer than the normal working day As a result of working unsociable hours employees can be compensated through higher wages

SECTION 2 WORK How people are paid: BACS BACS stands for the Bankers’ Automated Clearing Services and is a system used within the UK for allowing the electronic transfer of money between banks This means that it avoids the need for paper-based documents when making payments The payments can take up to three days to move from one bank to another

SECTION 2 WORK How people are paid: Fringe Benefits Fringe benefits are when workers are Paid in ways other than money Examples include; – Company car – Private healthcare – Staff discounts – Employer Pension contributions Fringe benefits have a financial value and are often paid for highly skilled and highly paid jobs

SECTION 2 WORK Extension Task... Complete the case study by accessing the document called... “2.2 The reward for work”