Working time payment

The efficiency of production largely depends on the form of payment. What can be its forms? In general, there are two of them - piecework and time-based. All the rest are just their varieties. With a piece-rate payment, a worker receives a reward directly for the work done, and a simple time-based payment assumes that he will receive money not for the goods produced, but for the hours he spent at the workplace.

It may seem that piece-rate payment is more beneficial to both parties, but the fact is that many employers refuse it, because they consider it not effective enough. Pros, as well as the disadvantages of time-based pay will be discussed in this article.

The time form of payment

The wide spread of this form is explained by numerous circumstances. First of all, such circumstances include scientific and technological progress, which constantly changes the essence of production. Over the years, the division of labor has become more and more noticeable, the requirements that are imposed on the staff are becoming tougher. It is not always possible to evaluate the result of a particular employee, since the main emphasis is on collective work and, of course, on the collective result.

In some cases, the production process is strictly regulated. The point is that an increase in production will lead to an increase not in profit, but in losses.

Yes, time-based pay has many advantages. The main thing is that the employer does not have to spend a lot of time and money on the enhanced quality control of the products - employees are in no hurry and do everything on conscience. Employees feel part of the enterprise and understand that the welfare of other people depends on their work. The time pay significantly reduces staff turnover. Employees understand that staying in the company, they will receive a stable salary, which will make sure of the future.

The time labor payment guarantees a relatively stable income. Everyone gets exactly what they need to receive, which means that no one is trying to circumvent anyone by trifles; enmity can be observed not so often.

Does time-based payment cause any problems and difficulties? Unfortunately yes. Do not forget that employees receive money not for the work done, but for their actual presence on it. Stimuli that are capable of increasing labor productivity are not that many. Quality control is not so important, but there is a need for control over the employees themselves. The cost of this entails considerable. Control in some situations may not be feasible. It is also important to note that controllers are able to come to terms with workers who do not want to work as they should.

The necessary control, which was described above, can cost the employer dearly. Where can I get money from him? In most cases, cash is withdrawn from the wages of the workers themselves. This is one of the main reasons that time-based pay is usually less than the piece-rate payment.

In fact, the employer pays employees not the work itself, but the hours during which they stay on it. Problems can arise if production is suspended for objective reasons. It is a question of the fact that with the broken equipment the worker will not be able to fulfill his immediate duties. However, almost always there is an opportunity to occupy something different, unlike its usual work. But still useful for the enterprise. Just do not forget that not everyone will agree to perform work that is not prescribed in the employment contract.