Salary is the most important of the motivating factors of staff at any enterprise, and also makes up a significant part of the costs. Therefore, the right choice of form and system of remuneration directly affects the results of the company.
In theory, the form of wages is understood as the payable object of labor accounting, which can be the time worked or the amount of work performed directly. While the wage system is a set of instruments for regulating the accrual of payments. It can be tariff, non-tariff, based on floating salaries or commissions. However, in practice, the forms and systems of wages are often identified among themselves, and are used to indicate the general system of organization of payments at the enterprise.
In addition to the object of accounting, to determine the system of remuneration, it is important to have additional incentive payments, the procedure for distributing earnings between employees. Depending on these factors, the main forms and systems of wages are distinguished. They usually include time, piecework and accordion, as well as subspecies: piece-progressive, time-and piece-premium, indirect piecework.
Time systems
The time-based system is characteristic if the remuneration at the enterprise is carried out in accordance with the amount of time worked. However, it should be emphasized that for this form it is also necessary to perform certain job functions. The very fact that an employee is at work does not give him the right to receive a salary. Typically, the amount of time worked is expressed in hours, however, any other time reference (for example, a day or weeks) can be selected at the enterprise.
The time-bonus form allows incentive payments in case of achievement of excess work results or for certain reasons, as a means of maintaining the corporate spirit (for example, on holidays or significant dates). Prizes can be one-time or regular, and can either clearly depend on certain achievements (for example, when the plan is overfulfilled by n percent), or determined by one-time decrees (orders) of the management.
Piece systems
The piecework system of payment is if the object of labor accounting is the amount of work performed. Simple (or direct) piecework is charged depending on the quantity of products (services rendered) at established tariffs.
Piece-rate wages allow for bonuses, the basis for which may be certain achievements in work, overfulfillment of production rates, holidays or other important dates.
The piece-progressive system implies an increase in prices for each excess of the production norm.
Indirect piecework is typical for the pay of dependent personnel, whose salary is determined in shares of the earnings of the main workers.
Chord system
Its essence lies in the fact that for the whole team of employees participating in the work, a single wage fund is allocated , excluding tariffs or piecework rates. The application of this form and system of wages is rational in the case when the amount of salary money is allocated not for each production unit, but for the entire volume of production (or for a separate stage of production). At the same time, the possibility of accurately recording the workload of each of the employees, as well as determining its quality, is fundamental. For this, so-called labor participation rates are often used.
The preference for a particular form and system of wages is determined by the characteristics of the production process, the possibility of delimiting the areas of responsibility of personnel, the motivational function of each system for various types of production.