The relationship between the employee and the employer is a complex process of interaction, which is based primarily on the main principle: both parties receive material benefits from each other.
In order to implement such a task, various methods of organizing a wage system in companies are being developed. They can be divided into two large groups:
- piecework form of payment;
- time-based form of payment.
In the framework of this article, the first form will be considered in more detail.
Piecework pay is a more complex phenomenon than time wage, as it may include various combinations and options.
Piecework wages in modern enterprises is one of the most popular forms of wages. It provides for labor remuneration, which depends on the quantitative and qualitative indicators of the employee for the past period. In other words, payments are made solely for the amount of work performed. A bonus amount for various additional indicators may be added to piecework payment.
Concept of remuneration
The organization of remuneration is regulated by the Russian labor legislation at the following levels:
- the minimum guarantees that the employer is required to provide to the employee;
- tariff agreements of trade unions (or other organizations of workers) representing the interests of workers with unions of employers (at the level of guarantees provided by the results of work);
- collective agreements of employers and trade unions (at the level of guarantees that a particular employer can afford);
- according to tax law.
The current regulation includes:
- legislative establishment and amendment of the minimum wage;
- tax regulation of cash income that goes to organizations for remuneration of labor, as well as income of individuals;
- establishment of guarantees by the state.
Russian labor legislation defines the following forms of remuneration:
- tariffs that determine the performance of work of a given volume and given complexity for a limited period of time;
- at a fixed rate that is paid to the employee for a month in accordance with the official duties established for him and a certain complexity.
The first form is piecework, and the second is time-based (or salary payment).
Both of these forms are a mandatory part of the salary - payments directly for the work performed. This adds another component that takes into account special special working conditions. The third element is a part of the salary in the form of a stimulating element. Therefore, an employer who uses an incentive (bonus) system at the enterprise must:
- make decisions about what he needs to pay, in addition to his salary, also bonuses;
- determine the rules for calculating premiums.
Compensation in case of piece-bonus form is the sum of the following accruals:
- payment for the work itself at existing rates;
- allowances and bonuses for special working conditions;
- payment of bonuses due to the employee in the event of the creation of certain conditions.
The concept of piecework wages
Piecework wages should be understood as a type of payment (a way of determining wages) in which a monetary remuneration is paid for each unit of a product or volume of work, taking into account the specificity, quality and complexity of production. Here, take into account the complicated working conditions, increased danger in the workplace, harmfulness, etc.
Main types
The following types of payments are applied at modern enterprises:
- a simple piece-and-premium form, in which constant bonuses are made by paying additional cash compensation for overfulfilment of established labor standards and the absence of marriage in work performed and products;
- piecework-progressive, which provides for the establishment of special increased rates for the work performed in excess of certain standards established for it;
- accord-bonus, which is used to assess the value of the complex of works performed in a certain short time (carried out on the basis of costing of these works);
- indirect piecework is used in the work of auxiliary units of the company.
Main features
The company's incentive system should be aimed at the following:
- employee motivation management;
- encouraging staff to achieve the best results in achieving the goals of the business plan in accordance with the company's strategy;
- increasing personal and team performance of employees;
- establishing a direct relationship between wages and other benefits of employees upon their achievement of specific results in accordance with the approved work plans;
- attracting and retaining employees needed by the company;
- positioning the company as the "best employer".
The characteristic features of the developed bonus system in the company with such a remuneration system are:
- applied only to those employees who receive a salary at a rate;
- dependence of salary on employee performance;
- lack of need to constantly accrue bonuses, only if certain indicators are achieved;
- the need for mandatory application of the district coefficient, which in each region has its own significance.
The incentive system should be comprehensive. It is built in accordance with the motivation factors of employees, their needs and expectations. The use of motivation tools allows the company to reduce staff turnover and increase labor productivity.
The establishment of certain bonus rules includes the following types of information:
- a description of the types and characteristics of the procedure used material incentives;
- description of the conditions for calculating premiums;
- the establishment of special numerical values for calculating premiums;
- determination of the accrual of cash surcharges;
- identification of conditions for the deprivation of bonuses.
Positive aspects of piecework wage
The advantages of this system for the employer include:
- the popularity and sophistication of this system, as it allows the employee to be interested in the final indicators of their work and the growth of efficiency of the whole company as a whole;
- the willingness of staff to work productively, and not just receive money;
- reduction of fixed costs of the company due to the intensification of labor.
The advantages of this system for an employee include:
- income directly depends on the quality of work of the employee;
- You can take beginners to any job.
The negative sides of the system
Like any economic phenomenon, this system has its drawbacks.
Negative aspects for the employer:
- the complexity of administration, which should be understood as the need to maintain a staff of supervisors and accountants (this gives an additional burden on the payroll);
- a possible decrease in the quality of work, since the employee can be aimed not at the quality of the work performed, but at its quantity (the need for clear control of marriage);
- the level of injuries is higher than under normal conditions (the employee in pursuit of the volume of work loses attention and concentration);
- the complexity of the process of rationing labor.
Negative aspects for employees:
- The ratchet effect implies that an increase in the volume of work performed entails an increase in standards. With the constant growth of standards, the employee’s capabilities are at the limit, he ceases to cope and, as a rule, loses interest in productive work.
- Decrease in income when going on vacation or on sick leave.
Calculation formula
Consider the question of how to calculate piecework wages. The calculation procedure determines the accounting of the number of produced units of goods by the employee. Each unit has its own value. Therefore, the calculation of piecework wages is formed from the amount of finished product output.
For the calculation we use two quantities:
- production rate per day (NI);
- official rate per day.
To understand how to calculate piecework wages, the calculation formula should be considered:
ZP = NI * D,
where RFP - employee salary, thousand rubles
With a chord system of remuneration within the framework of the piece-form, the formula is used:
RFP = V * MF,
where B is the time that an employee needs to perform the necessary operations with respect to a unit of goods, expressed in hours; MF - the monetary value of one hour, rubles.
Basic rates
Consider the question of how to correctly calculate the piece-rate wages and rates at it. The piece rate can be calculated by the standard setter based on an analysis of the work of the employee or the team as a whole over several months.
The instructions for calculating the piece rate are as follows:
- To analyze the work for three, six and twelve months. For this, all manufactured products for the analysis period are added up and divided by the number of working days in the billing period. Thus, the average production per day is obtained. The obtained value must also be divided by the number of working hours, we get the number of manufactured products per hour.
- We carry out the price for the manufactured products. To do this, we determine the average daily salary of an employee. For this calculation, add up all the employee’s earned amounts for 12 months, divide them by 12 and 29.4 (the average number of working days in a month). We get a salary in one day.
- Divide the average daily wage by the number of products produced by the employee in one day. We get the cost of one part.
- To determine the average piece-rate, we add the number of products produced for three, six, twelve months of all employees and divide by the number of days during which the products were released.
- We calculate the average earnings for the analysis period.
- Divide the average daily salary by the number of products per day. Thus we get the average piece rate.
Calculation of maternity leave pay (M&R)
Consider the features of such payments with piecework wages. How to calculate the amount of biR?
Amount of vacation pay in BiR:
C = CD x PO,
where SD is the average daily earnings, rubles .; PO - vacation time, days.
Before calculating the maternity allowance, it is necessary to take into account not only the minimum wage and minimum insurance experience. Limitations exist for maximum income. Accordingly, the size of the maternity allowance and benefits is calculated from this maximum amount, regardless of the size of the income exceeding it.
Calculation Example
It is necessary to calculate the piecework wages of workers on a specific example.
Suppose that Akkond LLC has established piecework wages. In November 2017, the employee manufactured 250 units of goods per month. In this case, the piece rate for one unit of goods in the company is 30 rubles. Then the employee salary will be:
250 units * 30 rubles per unit = 7,500 rubles.
An example of calculation with a progressive form of remuneration is as follows. Take the same worker who made 250 units. products.
The piece rate for it is:
- up to 100 units - 30 rubles .;
- from 100 to 300 units - 40 rubles .;
- over 300 units - 50 rubles.
Payroll will look like this:
100 units * 30 rubles / unit + 150 units * 40 rubles / unit = 3,000 + 6,000 = 9,000 rubles.
Obviously, with this type of wage , the wage of the employee is higher. You can calculate the piecework-premium pay in the following form.
To all of the above conditions, we add a bonus of 20% for fulfilling production standards, which is 250 units of goods.
Then the employee wages will be:
250 units * 30 rubles / unit = 7 500 rub.
The prize will be:
7,500 * 20% = 1,500 rubles.
Total earnings:
7,500 + 1,500 = 9,000 rubles.
The calculation of piecework wages on an example showed that the option piecework-bonus system is more beneficial for the employee.
conclusions
The transition to piece-rate wages for employees will stimulate labor productivity, and the number of manufactured products increases significantly. But the mechanisms on the basis of which payment is made should work smoothly and clearly.