One of the key organizational issues at the enterprise is the choice of the form of remuneration. In most cases, employees of enterprises receive remuneration in accordance with the salary and hours worked. However, this scheme can be applied by no means in all organizations.
For example, it is not suitable for enterprises where it is extremely important for the manager to increase staff productivity, and also where quantitative indicators of work performed can be taken into account. In such cases, the introduction of the piece rate is considered the best option. The essence of this option for calculating employee benefits will be discussed later in the article.
General information
Piece-rate is a form of employee benefits in which the amount receivable directly depends on the volume of work performed, units of output issued. It is possible to introduce this option of calculation with personnel, if it is possible to calculate the result of labor and track its quality.
In most cases, time wages are used. According to this scheme, remuneration is received, for example, by health workers, teachers, administrators, security guards, accountants, etc. The piece rate is a suitable calculation option for welders, turners, copywriters, taxi drivers, repairmen, etc.
Employee motivation
Often, the manager, trying to increase the interest of workers in labor activity, uses a combined calculation procedure: piecework rate and a fixed amount of wages.
As a rule, in such cases, the employee is guaranteed a monthly salary. It provides essential needs during the “dead season”. Over and above this salary, an employee is charged for each unit of products sold or manufactured.
Important indicators
To determine the piece rate, you need to know some additional values. Among them:
- The rate of production. It represents the minimum number of units of products that must be manufactured or sold in a given period of time. As a rule, hourly, monthly, and daily rates are established.
- Tariff rate. It represents the minimum guaranteed amount of employee benefits per month. The rate is set in accordance with the qualifications. It is worth saying that salary is only part of the salary. In addition to the tariff, it may include social payments, bonuses, etc.
- Tariff grid. It is a scheme for calculating the payment of work in accordance with its complexity and qualifications of the employee.
How is the piece rate determined?
Consider the calculation procedure using an example. Let's say that the enterprise has a daily norm for a milling machine operator - 120 parts. The tariff rate is 1200 rubles per day. During the month of operation, the milling machine was able to process 2400 parts.
The determination of the piece rate is carried out by dividing the rate by the norm:
P = 1200/120 = 10 rubles / pcs.
The monthly earnings of the milling machine operator will be:
10 x 2400 = 24 000 rub.
At some enterprises, the production rate is determined by the time taken to complete the operations, and a slightly different procedure for calculating the piece rate is applied. In this case, the calculation is somewhat more complicated.
Suppose the enterprise has a time standard of 30 minutes per operation on the machine. The hourly rate is 150 rubles / month. For a month of work, the employee was able to perform 600 operations. We calculate the piece rate. In this case, it is equal to:
P = 150 x 30/60 min. = 75 rubles / operation.
For a month, the employee will receive:
75 x 600 = 45 thousand rubles.
Direct piecework payment
Earnings of employees is determined in accordance with the volumes achieved using solid amounts established depending on qualifications.
For example, the piece rate of a seamstress of the highest category is 50 rubles. for one product. She sews 600 pieces per month. Accordingly, her earnings will amount to 30 thousand rubles.
Piece-rate payment
With this form of calculation, a premium is provided for the production / sale of products in excess of the established norm. Improving performance, improving product quality, reducing rejects, costs, etc. can also be indicators of bonuses.
Indirect piecework earnings
This form of calculating remuneration is used to pay for the work of employees responsible for the smooth operation of the equipment. Thanks to these specialists, the main production staff is not idle.
The calculation is carried out by multiplying the price by the number of products produced on the production line.
Piecewise progressive form
This option is used to dramatically increase output. With this scheme, until the standard established by the enterprise is reached, the calculation is carried out at fixed prices. If the volume of output begins to exceed the norm, higher tariffs are used.
Such a system is considered one of the most motivating.
Chord pattern
It involves payment not for a unit of goods, but for a single operation or all work as a whole. In the work order for the production assignment, the start and end time of the activity is established.
As a rule, such a scheme is used in agricultural, transport, construction enterprises. However, it can be installed for an individual employee or team.
Terms of transfer to piecework payment
It is advisable to introduce such a system at the enterprise if:
- The accounting of manufactured goods or provided services has been established.
- The supply of materials, raw materials and other resources for production is uninterrupted.
- The company has an effective quality control system.
- Adequate pricing schemes and production standards have been developed.
- It is possible to track the quantitative indicators of the activities of each individual employee.
- The company had a need to significantly increase the level of sales / production.
Benefits
Piece-rate payment allows you to:
- Increase production and sales.
- Increase employee motivation.
- Track the quality of work of each person individually.
- Encourage employees to self-development if the increase in payment depends on personal qualities.
- To increase the mutual assistance of workers. This is true for a chord team system - the whole team is interested in the quick completion of work.
The disadvantages of the piecework payment system
Among the main disadvantages can be noted:
- Possible decrease in quality of work due to rush.
- The need for uninterrupted supply of materials and components.
- The unwillingness of the employee to do other things than work. For example, clean the workplace, clean equipment, etc.
- Possible non-compliance with technology, safety rules.
The desire to quickly complete the work can lead to large expenditures of raw materials.