Salary: DEFINITION - Where the employee is paid a fixed amount of money per year, split evenly over 12 months, ADVANTAGE - Motivates staff as they know they have a secure monthly income, DISADVANTAGE - some staff may feel they are working harder than other staff for the same pay, Piece Rate: DEFINITION - Where employees are paid based on the number of items they make, ADVANTAGE - Motivates staff as they know if they make more products they will earn more money, DISADVANTAGE - Quality may drop as staff focus on how many they make rather than how well they can make it, Hourly Rate: DEFINITION - provides staff with a variable wage as it is based on the number of hours they work, ADVANTAGE - Motivates staff as they know working extra hours can earn them more money, DISADVANTAGE - The hours worked may not be the same each week/month so might not result in a steady wage for employees, Commission: DEFINITION - Where staff are paid a percentage of any sales they make, ADVANTAGE - motivates staff to sell more products, DISADVANTAGE - Staff have little financial security as if demand drops they will not make as much money through no fault of their own, Bonus: DEFINITION - when staff ar paid an extra amount of money for reaching a target, ADVANTAGE - Motivates staff to work hard and reach their target, DISADVANTAGE - circumstances out with the employees control can often stop them hitting their target the , Profit Sharing: DEFINITION - Where staff are paid a percentage of the profits of a business, ADVANTAGE - motivates staff as they know if they stay and work hard in the business they will be rewarded, DISADVANTAGE - Staff may work hard all year but receive no reward if the business doesn't make a profit,

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