Non-Financial Rewards (SQA National 5 Business Management): Revision Note

Exam code: X810 75

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Working practices

  • Working practices describe the different ways people are employed and organised at work

    • Modern businesses often offer a variety of working patterns to meet both business needs and employee preferences

1. Full-time working

  • Employees work the standard number of hours per week, usually around 35–40 hours

    • E.g., a full-time sales manager works 37.5 hours a week at a retail chain, attending team meetings and earning a full salary with benefits

  • Full-time employees often receive a salary and are entitled to full benefits such as holidays, pensions and sick pay

Evaluating the use of full-time working

Advantages

Disadvantages

  • Provides job security and a regular income for employees

  • Helps employees build strong relationships with colleagues

  • Encourages loyalty and a clear sense of belonging to the business

  • Can make it difficult for employees to balance work and personal life

  • Less flexibility for employees with family or other commitments

2. Part-time working

  • Employees work fewer hours than full-time staff, often to suit personal or family needs

    • This is common in retail, hospitality and education

    • E.g. A part-time café worker works 20 hours a week, allowing time to study or manage childcare

Evaluating the use of part-time working

Advantages

Disadvantages

  • Helps businesses cover busy periods without paying full-time wages

  • Gives workers flexibility and a better work–life balance

  • Fewer hours mean less income and sometimes fewer benefits for employees

  • Employees may feel less involved in the business

3. Flexible working

  • Employees can choose when or where they work, as long as they complete agreed tasks or hours

    • This may include flexitime, compressed hours, or remote working

  • E.g. An accountant works flexibly, starting early and finishing mid-afternoon to collect children from school

Evaluating the use of flexible working

Advantages

Disadvantages

  • Can improve work–life balance and reduce stress

  • Can increase motivation and reduce absenteeism

  • It can be difficult for managers to monitor performance

  • Teamwork can suffer if people work at different times

4. Teleworking

  • Employees work from home or another location away from the main workplace, using technology to communicate

    • E.g. An IT support worker uses email and video calls to help clients from home

Evaluating the use of teleworking

Advantages

Disadvantages

  • Saves travel time and costs for employees

  • Reduces business costs for office space and utilities

  • Often improves concentration and job satisfaction

  • Can feel isolating with less face-to-face contact

  • It's difficult for managers to supervise or support employees

5. Job share

  • Two people share the duties of one full-time role, splitting hours and pay

    • E.g., two HR assistants share one full-time job, each working 2.5 days per week

Evaluating the use of job share

Advantages

Disadvantages

  • Keeps skilled staff who cannot work full-time

  • Provides continuity if one person is absent

  • Requires good communication between sharers

  • Can cause confusion or gaps in responsibility

6. Other non-financial rewards

  • Non-financial rewards are the benefits employees gain that don’t involve direct payment, but still make work satisfying and rewarding

    • They help employees feel valued, trusted and involved, which can boost motivation and reduce staff turnover

Reward

Description

Example

Promotion opportunities

  • Staff who work well may move to higher positions with more responsibility

  • A part-time worker becomes a team leader

Praise and recognition

  • Managers give verbal or written appreciation for good work, boosting morale

  • An employee receives public thanks in a team meeting

Social activities

  • Businesses may organise events to help staff bond and feel valued

  • A company hosts a summer BBQ for all employees

Teamwork

  • Working closely with others provides support, motivation and shared goals

  • A marketing team collaborates on a new campaign

Examiner Tips and Tricks

Students often list examples without explaining their impact. Go beyond “flexible hours” or “promotion” - show how they increase motivation or loyalty. Examiners want to see that you understand why these rewards matter, not just what they are

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.