Economics

An investor combines various factors of production such as labor, capital, and land as well as entrepreneurship into a business entity.  All this factors are important in ensuring success of the business. Entrepreneurship is characterized by innovation and is growth oriented. This greatly play a big role in ensuring proper working of the other factors of production.  Labor is also an important ingredient towards the success of the business. A business should ensure that it employees passion for the business is high. Motivation to employees should be encouraged. Given that employees are rational economic agents they will desire to have more than less. (Kanfer,  Robert 2008 Pierre and Andre 2004 Salvardor etal1998)

The current market structures are competitive in many aspects. Recruitment of labor force should be well planned so as to obtain the best labor force. Motivating to workers will have a positive impact on their productivity. Good money to workers may not necessarily be a motivation to employees to work harder and give the best output. Developing a good attitude towards the business among the workers towards the business as part and parcel of themselves may work towards desirable production. (Kanfer  Robert 2008).

As in the case of Restoration Hardware, Julie Vogenbaugh earns 40 of discount of everything the high end furniture and home accessory sells.  The 40 discount earned is a form of motivation for Julie to work for this business. Workers are also interested on material benefits they obtain from a business and how this adds value to their family and their friends. Julie can count on Restoration Hardware, based on the good discount offered by the business she has been able to purchase leather sofa and a leather ottoman, as well as holiday gifts to her friends and family. The attractive discount is a form of benefits alongside insurance benefits, retirement savings and adoption assistance. Good discounts offered to the workers will attract the best employees who have a passion for the trade involved in the business. In such a case it makes the business more of entrepreneurial based since passion for work is one trait of an entrepreneur. 

Discount by Talbouts of 40 off original prices to those who work for at least 20 hours per week is an incentive for these workers to work for not less than 20 hours. A discount to employees, as in the case of Starbucks, where it gives each of its employees a pound of coffee each, makes them feel a sense of belonging to this company. This makes employees more motivated to ensuring company achieves it objectives.

Stein Marts offers 25 discount to women who work for eight hours a day in selling high end career and evening wear. This is program for two days per month.

The discounts are now a competitive advantage in recruiting best employees. In such a case employees are so much concerned on discount received not the money earned per specified period. The motivation to employees will lead to more productivity in a business. This may be represented in the following graph.