How could ABC use financial rewards to motivate workers?

• A. Offer lower wages to conserve costs
• B. Offer higher wages, bonuses, or performance pay to encourage productivity and attract skilled staff
• C. Provide non-financial recognition only
• D. Reduce pay but increase hours

Answer: (B)

Financial rewards motivate workers by tying pay to performance, creating a clear link between effort and the amount earned. When wages, bonuses, or performance pay increase with productivity, employees see a tangible connection between what they do and what they receive. This can boost motivation, push for higher output, and help attract skilled staff who want to be rewarded for strong performance. It’s a practical way to align individual goals with what the business wants to achieve.

Lowering wages to cut costs reduces the incentive to work harder and can drive talent away. Providing non-financial recognition alone doesn’t use financial rewards, so it won’t maximize the motivational effect described in the question. Reducing pay while increasing hours can decrease satisfaction and motivation, making the arrangement unlikely to produce the desired improvement in performance.

In practice, financial rewards might include higher base pay for role skills, bonuses for meeting targets, or pay that rises with performance, all designed to reinforce productive effort.