How To Pay In Production

Table of contents:

How To Pay In Production
How To Pay In Production

Video: How To Pay In Production

Video: How To Pay In Production
Video: What is PAY ON PRODUCTION? What does PAY ON PRODUCTION mean? PAY ON PRODUCTION meaning & explanation 2024, March
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Good wages are the main incentive for a person to work in production. What are the forms of salary and how to organize the process of payment of monetary remuneration in the most efficient way?

How to pay in production
How to pay in production

Instructions

Step 1

Decide on the form of payroll. Distinguish between time-based and piece-work. In the first case, it is the time actually worked by the employee that is paid, based on the rate or tariff per unit of time, as a rule, for one hour. In addition, according to the results of any period: month, quarter, year - the employee is awarded a bonus based on the results of his work. Piece-work system involves payment for the performance of a certain amount of work or manufactured units of products. Also, wages can be piece-bonus or piece-progressive (the more the employee has done, the more money is paid for each unit of production). Consider the nature of your production and choose the most suitable option.

Step 2

Plan the formation of the wage bill. This is one of the main components of the cost budget, so take into account the production capabilities, market situation and other features of the financial situation. Please note that the fund must take into account the payment of annual leaves and sick leaves, payment of the thirteenth salary, and other expenses.

Step 3

Get workers interested in getting more wages. To do this, many enterprises introduce the following system: an employee receives a small guaranteed salary and a significant percentage of the company's profits. In this case, it is beneficial for him to work more efficiently. In addition, this approach allows you to get rid of lazy and incapable employees in time. With a simple hourly payment, a person receives money not for the fact that he works, but for the fact that he is at work. This often leads to the fact that a person simply “sits out” the prescribed hours, but the matter does not move.

Step 4

Think over a system of awards and rewards. Bonuses can be awarded not only for a certain holiday, after a certain period or the completion of a major project, but also for completing a particularly difficult task, winning an internal competition and on other occasions. The bonus is an effective measure to improve labor efficiency.

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