How does the company pay?

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Remuneration of the company depends on three elements that are interrelated and interdependent: the valuation of labor, the tariff system and the form of wages adopted by the organization.

The tariff system includes base rate, which affects the salaries of hour worked (day), rate schedule and tariff guide.Rate scale reflects the ratio in which the remuneration of the company, depending on the category of work and skills of workers.Rate Card is designed to determine the category of work and workers.If payment at the enterprise charged, then the simplest work is paid at the rate of the first rank.Compensation of employees who perform more complex operations will exceed this size, depending on the assigned tariff rate.

remuneration system in the enterprise can be tariff-free.The salary of employees is entirely dependent on the final result of work performed.With this payment method there is no firmly established salary (wage rate).This system is suitable in cases where it is possible to take into account the results of each worker individually if the overall responsibility and the collective interest.

remuneration system is divided into shape.They depend on the main indicator that determines the results of labor.The most frequently used are the two most common forms of wages: piecework or time-based.In this form, according to which the remuneration is conducted, businesses are choosing their own.

measure of labor time-based calculation of the amount of payment in favor of time worked.Earnings thus calculated based on the salary (or flat-rate worker).

When piecework form of earnings is calculated taking into account the quality and quantity of work done or goods manufactured.The salary is calculated according to the established in the organization of piece-rates for each execution unit (work).

very important that form over which the remuneration of the company was determined correctly.Its choice depends on several factors: the organization of work and production, the nature of the equipment, the specifics of technological process requirements that apply to the organization of the quality of manufactured products and the wastage of material and labor resources.

time wages are best used when:

  1. automated, hardware, strictly regulate the production, in which the worker can not affect the processing time;
  2. high requirements for the quality of products that are completely independent of the workers;
  3. possible increase in generation in the workplace when it is not required to produce.

This type of remuneration is characteristic of duty mechanics, electricians, accounting clerk, storekeepers, workers of services of technical control.This is due to the difficulty of quantitative measurement and valuation of their work.

piece rates in the enterprise is effective under the following conditions:

  1. need for the organization to increase output, increasing productivity in a particular area;
  2. availability of opportunities to increase production by reducing time-consuming;
  3. opportunity to raise the productivity of workers in a stable technology and normal quality of work performed.

These conditions are characteristic of organizations that use mechanized, manual or mixed type of work.Choosing piecework pay, we must remember that even in the case where there are all necessary conditions for a significant increase in output, but it deteriorates the quality of work and material resources are used inefficiently and equipment wear out prematurely, this form of pay is best abandoned.