How does a business train and motivate its employees, and what employment laws must it follow?
The methods of training employees (induction, on-the-job and off-the-job) and their benefits, the financial and non-financial methods used to motivate staff, and the main employment legislation a business must obey.
A focused answer to the SQA National 5 Business Management content on training and motivation, covering methods of training (induction, on-the-job, off-the-job) and their benefits, the financial and non-financial methods of motivating staff, and the main employment legislation a business must obey.
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What this dot point is asking
The SQA wants you to know the methods of training and their benefits, the financial and non-financial ways a business motivates staff, and the main employment legislation it must obey. These topics reward describe and explain answers about how a business gets the best from its people.
Methods of training
Training improves the skills and knowledge of employees so they do their jobs better. There are three main methods.
Benefits of training
Training costs money and time, but it brings clear benefits.
In short, training raises productivity and quality, reduces mistakes and waste, improves motivation and job satisfaction, lowers staff turnover, and creates a flexible workforce that can adapt to change.
Motivating employees
A motivated employee works harder, produces better work and is more likely to stay. Businesses use two kinds of method.
- Financial methods: rewards involving money, such as a pay rise, a bonus for good performance, commission (a percentage of sales), profit sharing (a share of the firm's profit) and fringe benefits (extras such as a staff discount or company car).
- Non-financial methods: rewards not involving extra money, such as praise and recognition, training and the chance of promotion, more responsibility, job rotation or job enrichment to make work interesting, good working conditions, and teamwork.
A well-motivated workforce raises productivity and quality, reduces absence and turnover, and improves the firm's reputation as an employer.
Employment legislation
A business must obey employment laws that protect workers. The main ones at National 5 are:
- Health and safety law (the Health and Safety at Work Act): the employer must provide a safe workplace, safe equipment, training and protective clothing, and employees must work safely.
- Equality law (the Equality Act): the business must not discriminate against people because of characteristics such as age, sex, race, religion or disability, in recruitment, pay or treatment at work.
- Minimum wage law (the National Minimum Wage Act): the business must pay at least the legal minimum wage for the employee's age.
Obeying these laws protects employees, avoids fines and legal action, and protects the firm's reputation; breaking them is costly and damaging.
Try this
Q1. Name the three main methods of training. [1 mark]
- Cue. Induction, on-the-job and off-the-job training.
Q2. Describe one financial and one non-financial method of motivation. [2 marks]
- Cue. Financial: a bonus or pay rise. Non-financial: praise, promotion or more responsibility.
Q3. Outline one employment law a business must obey. [2 marks]
- Cue. The Health and Safety at Work Act (provide a safe workplace), the Equality Act, or the National Minimum Wage Act.
Exam-style practice questions
Practice questions written in the style of SQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
SQA-style Describe4 marksDescribe methods a business could use to motivate its employees.Show worked answer →
Award 1 mark per method correctly described, up to 4. A financial method is a pay rise or a bonus linked to performance, which rewards effort with money and encourages staff to work harder (1). Commission or profit sharing gives employees a share of sales or profit, linking their reward to the firm's success (1). A non-financial method is praise and recognition for good work, which makes staff feel valued (1). Other non-financial methods include training and the chance of promotion, more responsibility or job rotation to make work interesting, and good working conditions and teamwork (1). Markers reward described methods, and accept a mix of financial and non-financial.
SQA-style Explain4 marksExplain the benefits to a business of training its employees.Show worked answer →
Award marks for explained benefits (a cause and its effect), up to 4. Training improves employees' skills, so they work more quickly and to a higher standard, raising productivity and quality (1). Skilled, confident staff make fewer mistakes, so waste and the cost of errors fall (1). Training shows staff the business values them, which raises motivation and job satisfaction and reduces staff turnover (1). A trained, flexible workforce can take on new tasks and adapt to change, helping the business compete (1). Markers reward the link between training and a benefit such as higher productivity, fewer errors or better motivation.
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Sources & how we know this
- National 5 Business Management Course Specification — SQA (2024)