Which term refers to non-financial rewards provided to employees?

Prepare for the IGCSE Business Studies Section 2 – People in Business exam. Study with multiple choice questions and flashcards, complete with hints and explanations. Ace your exam with confidence!

Multiple Choice

Which term refers to non-financial rewards provided to employees?

Explanation:
Non-financial rewards are ways to motivate employees without giving extra cash. Fringe benefits fit this idea because they are part of the overall pay package but aren’t direct wages or cash bonuses. They provide value through perks like health insurance, a company car, staff discounts, or subsidized meals, which can boost motivation and loyalty without increasing take-home pay. The other options describe things that aren’t rewards provided by the employer: an appraisal is a performance review, not a reward; job satisfaction is how someone feels about their job, not something the business gives; and job enlargement is a change to the job design (adding more tasks), not a reward.

Non-financial rewards are ways to motivate employees without giving extra cash. Fringe benefits fit this idea because they are part of the overall pay package but aren’t direct wages or cash bonuses. They provide value through perks like health insurance, a company car, staff discounts, or subsidized meals, which can boost motivation and loyalty without increasing take-home pay.

The other options describe things that aren’t rewards provided by the employer: an appraisal is a performance review, not a reward; job satisfaction is how someone feels about their job, not something the business gives; and job enlargement is a change to the job design (adding more tasks), not a reward.

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