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Internal influencesMotivational

Internal factors such as the skills and motivation of employees and the impact of good financial management can have an effect on the success of a small business.

Part ofBusinessInfluences on business

Motivational

Financial motivators - profti share, salary, bonus. Non-financial motivators - Fringe benefits, staff training, social events

Motivation is what gives employees the drive and desire to do well in their job. If a company's employees are motivated they will be more likely to apply themselves and take a greater pride in their work.

Many methods can be used to motivate staff. These can be split into two types:

  • payment systems
  • non-financial benefits

Payment systems

Payment systems that can be used to motivate staff are:

  • Bonus - Employees are paid an additional amount on top of their basic salary for achieving targets set by the organisation.
  • Profit sharing - Employees receive a share or percentage of the profit made by the organisation. This can motivate employees as the more successful the organisation is the more money the employee receives.
  • Pay rise - Employees can receive pay rises for working hard or remaining loyal to a company.

Non-financial benefits

Non-financial benefits that can be used to motivate staff are:

  • Promotion - Employees who are able to see a clear route available within an organisation are more likely to work hard and be more motivated to succeed.
  • Training and staff development - Employees who know that an organisation is willing to invest in their training and development will be more motivated to work well for the organisation.
  • Flexible working practices - This gives employees a degree of choice over where, when and which hours they work. There are different types of flexible working practices such as and .
  • Staff social events - Social events such as staff parties and quiz nights can help employees feel part of a happy organisation. This can make them more likely to work hard for the business.
Staff office party
Image caption,
Staff parties can foster team spirit.