What are the main forms of remuneration in the world? What is this all about? How is earnings calculated in a particular case? All this is extremely important for both employees and employers. Indeed, an understanding of the situation as a whole will help to understand what type of settlement system to choose for the boss to receive benefits. And subordinates will be able to accurately figure out what kind of earnings to count on in a particular case. So no one will be deceived.
Types and forms
Salary - a moment that requires special attention. Now there are various forms and types thereof. They differ in the accrual of funds to employees. So you have to choose the best option. The main forms of remuneration are systems:
- time-based;
- piecework.
But in these types there are already specific subsystems. They very accurately determine the format of the purpose of earnings in a particular case. So it’s worth paying attention to.
By time
The greatest demand for both employees and employers is time-based pay system. It allows you to accurately reward the employee for work. It is used where it is impossible to evaluate the contribution of the subordinate and the work performed in volumes. This system has many varieties. Thus, the main forms of time wage are:
- simple;
- tariff-free;
- premium.
Sometimes the option is “by agreement, depending on the hours worked”. But with constant employment, such a system does not take place. The time-based form is the formation of earnings exclusively for the time spent at the workplace. The volume and quality of products are not taken into account. Ideal for most employers and employees. Usually, a system of tariff hourly rates is used when calculating earnings. The larger it is, the higher the salary will be at the end of the month for the hours worked.
Simple time-based system
And now a little specificity. After all, it is not yet clear how the two subtypes given differ from each other. And which option is more suitable for most corporations both from the side of the employer and from the position of an employee.
The main forms of remuneration include a simple time-based system. When using this, the calculation of earnings will occur only taking into account the time spent at the workplace. Most often reflects a "clean" salary without bonuses and bonuses.
It uses the hourly rate. It is formed in order to determine the "cost" of the hours of work of a particular employee. May vary by post. Suitable for most companies, especially those who are recruiting students for work. Satisfies many employees. As they put it, "you can just sit out the allotted working time and go home." You can not worry about the quality and volume of products (provision of services). All this does not affect your earnings.
Additional stimulation
The main forms (systems) of remuneration are, as we have already found out, time-based, tariff-free and piecework calculation schemes. But for the time being, it’s not clear by what principles your salary will be calculated. The time-based system has a premium subtype. He is interested in many employees, only employers are not particularly interested in him.
This is a time-bonus system. It implies additional incentives for employees in order to improve product quality. In this case, the calculation is for the hours worked. But additionally paid bonus. They are charged for the quality of goods and services.A great way to increase this without growing dissatisfaction among employees. Only this kind of system is used not so often. Although it has a place to be. What else include the main types (forms) of remuneration? What features do they have? All of this is extremely important to understand, so as not to be deceived in certain cases.
Tariff rate
It’s necessary to understand such a moment as tariff rate. It takes place not only with time wage. So this is the main component of earnings in most cases.
Tariff rate refers to the unit price of the system of estimated labor. That is, with a time payment, it will be an hour. You can also enter a tariff per unit of output. Usually, using this component, it is easy to calculate how much each employee should get into his hands.
The tariff rate is the main point in all calculation systems, except for the non-tariff form. Otherwise, it takes place. To some extent, you can call the tariff rate.
Piecework system
The main forms of remuneration are piecework, time-based and non-tariff. With the second we have already figured out. It is used in practice very often. And what is a piecework system? How will she be paid? Does it have any subsystems?
Piecework wages - this is the formation of the employee's wages without taking into account the time worked. The amount of your monetary compensation depends only on the quality and quantity of goods produced and services rendered. To some extent, a very good way of calculating earnings. Most often used in all areas where it is possible to quantify the amount of work performed. It has many subsystems, namely:
- simple (similar to time-based);
- premium;
- indirect;
- progressive;
- accordion.
All these are the main forms of remuneration (in construction, a time-based system is often used, for example) for those who want to improve the quality of work performed, and not the volume thereof. True, the system has its drawbacks. Namely, a direct assessment of the work. It is not so easy to determine and evaluate quality in monetary terms. Therefore, it is customary to use special rates (tariff) for a unit of production, as well as for a certain quality (it will be considered according to the algorithm developed by the company).
Everything is simple
You were asked: "What are the main forms of remuneration and their subsystems"? It is much easier to fulfill the request than to understand all the systems for calculating earnings in a particular case. What if at work you are told that simple piecework earnings are used here?
Be prepared for the fact that payment will be made exclusively for the volume of goods produced (or for the number of services rendered to customers). At the same time, the execution time is not limited. It doesn’t matter if you completed the task in an hour or 5 hours - the earnings from this will not change if the same quantity of products was produced.
For accurate calculation of cash rewards, you need to use the rates for a unit of goods. They are set by the enterprise in a fixed amount and act as an analogue of the tariff (with an hourly system). There is nothing difficult or incomprehensible so far. Work on the principle of "how much did - so much received."
Piece-and-premium system
The next option is a premium form. It is used when you want to somehow stimulate employees to do more work with better quality. Why?
All the main forms of remuneration are known to us. But the features of each system and subsystem are important to know. Only then can the types of earnings in essence be distinguished. When piece-rate, the subordinate employer sets a specific work plan, the so-called norm. It is paid at the usual rate. But for overfulfilment thereof they pay bonus.It is also possible a monetary reward for product quality indicators. A great way to increase productivity and production quality. Also a fairly common option, but it is not very respected by employers. If you manage to improve the quality and quantity of goods and services produced, you will have to pay a lot. And big expenses to employers are not particularly interesting. Especially if the sales volume does not increase, but remains at the same level.
Indirect piecework
But that is not all. In some cases, indirect piecework earnings take place. It is not in demand very often, but exists in practice. Forms of the basic wage of workers of certain firms are already known. But the features of each subsystem are not completely complete. This needs to be fixed in order to fully understand the principles by which employers can pay you.
The indirect piecework system is designed to reward “auxiliary” employees who influence the volume and pace of work performed by the main personnel. Earnings are accrued in a simple piece-work form, but it depends on how many products the "foundation" of the corporation has released. This option does not include any more features.
Chord system
The main forms of remuneration at the enterprise are exactly the same as in any other organization. It all depends on what the employer chooses. There is a chord system of earnings. It refers to piecework.
Their features here also take place. The employer does not pay for a specific unit of production, but a certain amount of it. The norm to be met is set. For her, according to prices, you are accrued earnings. At the same time, the employer indicates not only the volume fulfilled, but also the time spent.
To some extent, a very good choice. After all, you yourself are able to control your working time. If you want, follow the norm in an hour, if you want, “stretch” it for the entire shift. It is your right. Usually, products made in excess of the norm are not paid at all. This system does not stimulate employees to increase production.
Piecewise progressive system
The main forms of remuneration are: time-based, non-tariff and piece-rate systems. The latter has a subsystem called progressive. It is more suitable for enterprises than a chord one. Especially if you need to increase production without sacrificing quality.
The piece-progressive form converges with the chord form. Only with such a development of events, earnings are formed not only due to the fulfilled norm. She is usually paid at the usual rates. But everything that you have done in excess of the norms established by the enterprise is additionally rewarded. But not with bonus payments.
As then? In this case, several times higher prices will apply for the volume of production performed. In practice, double rates are most often encountered. It turns out that the employee will strive to fulfill the established form with certain quality indicators to increase earnings, as well as additionally do something for the company. A very interesting scheme, but not all employers are interested in it. Therefore, most often with the piecework system there is a simple option for calculating earnings. Or premium. The remaining schemes take place, but are not so common in practice.
No tariffs
The main forms of remuneration are piecework, time-based and non-tariff systems. The last scenario is of interest to many. It quite often takes place in practice. And it has been found more and more recently.
Tariff-free earnings, as the name implies, do not imply any rates or rates. But how then can employee earnings be calculated? Easy and simple - it is set in the form of a fixed salary, which the employee receives on a monthly basis.Regardless of hours worked or products / services rendered.
As a rule, the salary will depend on the position of the employee, as well as on the chosen profession. In some areas of activity, the population earns more, somewhere less. So keep that in mind. Most often, in a tariff-free system, there are bonuses paid for certain achievements. This type of earnings is considered the most reliable and stable, but not always fair. Especially if you are constantly improving the quality and quantity of manufactured products / services rendered, but you do not receive premiums for this.
Summary
The main forms and systems of remuneration are now known to us. Moreover, it is clear what features each option has. It is not so difficult to choose the most suitable option for calculating earnings.
It is recommended to use an hourly system if the qualitative and quantitative indicators of the manufactured goods are not important. Otherwise, the piecework is suitable. The tariff-free system is also included in the main forms of remuneration. It is used most often when you don’t feel like developing tariff rates and it is impossible to estimate the volume of products produced (or if this is very problematic).
Which option to choose? This is every employer decides for himself. But if you prefer non-tariff, try to introduce bonus for certain achievements of personnel. They will be a good incentive to improve the quality of work.
