Loading…
Loading…
GCSE Business · key term
An additional benefit provided to an employee beyond their basic wage or salary, such as a company car or private healthcare.
Used by AQA, Edexcel and OCR
Paper 1
An additional benefit provided by an employer rather than direct cash pay, such as private healthcare or a staff discount.
Revise: Methods of MotivationFringe benefits are additional benefits rather than direct cash pay. Examples include a company car, private healthcare, gym membership and staff discounts. They can make a job more attractive and give employees a reason to stay, although their appeal depends on what each employee values.
Specification 2.5.4 · Paper 2
Revise: Employee MotivationFringe benefits are rewards beyond basic pay, such as a company car, private healthcare or gym membership. An attractive benefits package can help recruit staff and encourage employees to stay because leaving would mean losing those benefits.
Paper 1
An additional reward with monetary value provided alongside an employee’s normal pay, such as private healthcare or a company car.
Revise: Financial Motivation MethodsThe main methods are pay, bonuses, profit sharing and fringe benefits. Each connects the reward to work in a different way.
AQA includes fringe benefits among non-financial methods. They may have monetary value, but are benefits rather than direct cash pay.
For this specification, include promotion and fringe benefits among financial methods, although promotion can also provide recognition and responsibility.
Fringe benefits count as financial motivation because they have monetary value, even though they are not paid directly as wages.
Create a free account to read GCSE Business revision notes for your exam board and track your progress.