Piecework wages

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Piece rate is a wage (salary) whose height does not after the spent working time , but according to the obtained operation result is measured.

Business perspective on piecework wages

The REFA defines the piece rate as

“A principle of remuneration in which the wage is usually differentiated depending on requirements and performance. The quantity output that can be influenced by humans, or the degree of time derived from it, is used as the performance indicator . The efficiency rate is related to a certain reference service. "

- REFA

Essentially, a distinction is made between time and money chords, with the time chord being the more common form. Its basis is a standard time per order or per unit of measure ( time per unit ). The piecework is usually designed as a piecework surcharge, which is added to a basic remuneration that meets the requirements. From the base rate of the so-called will and the chord surcharge piecework rate determined.

There is no basic pay with the money accord. The remuneration is achieved entirely through the amount. So: double the amount also leads to double payment. In mining, this chord is called Gedinge .

The chord is tied to specific requirements:

  1. Working conditions and workflow must be determinable in advance. Human-friendly work design with repeated work processes, workers (people) suitable for piecework , adequately designed work systems and organizational structures that do not allow any major disruptions in the work flow are required.
  2. The default times must be reproducible. They have to meet minimum requirements for reproducibility and statistical reliability (see time study ).
  3. It must be possible for people to influence the volume output. If essential parts of the work cycle are predetermined by external influences (for example the cycle of a machine), then the work is not capable of chord work.

advantages

The following advantages are seen in the chord:

  1. Because of the simple connection between performance and remuneration, a strong performance incentive is seen.
  2. The determination of the standard time is associated with the optimal design of the workflow .
  3. The default times can also be used for calculation and production planning.

disadvantage

The following major disadvantages are the reason for the extensive withdrawal of the chord from practice in the last decade.

  1. To prevent overuse of people, chords are often cut. However, this prevents further performance development.
  2. Extensive preparatory work is required to determine the standard times. Their use for the determination of remuneration ensures constant unrest and discussion in the company.
  3. There is a risk that volume will be provided at the expense of quality.
  4. When absent, the employee receives the average of his piecework. In order not to endanger him, he will stay at home even with minor illnesses.
  5. If recovery is necessary, there is a risk that the employee will consciously cause disruptions so that recovery can take place during the repair.
  6. The employee will keep recognized improvements to himself and use them solely to secure his piece of work.
  7. A chord covered under 1 leads to the so-called “front water” when exceeded. The excess performance can be used to compensate for under-performance. As a result, the remuneration stabilizes at the upper limit of the piecework. The expected incentive to perform becomes a hindrance to performance.

species

  • The piecework wage only has a performance-oriented component.
  • When mixed piecework there is a time wage component and a chord surcharge.
  • The individual piece wage is the wage based on an individual.
  • The group piecework wage is corresponding to the performance result of a group.
  • Proportional piecework wages means that a constant wage is paid per unit

Formulas for calculation

Piece-time piecework wage

The standard time is determined through precise working time studies . It is the time to complete a work item with average performance. It can be used to calculate back to normal performance . 

     Normalleistung je Stunde = 60 : Vorgabezeit

Determination of the piece rate

(Hourly earnings at normal performance) 

     = Grundentgelt +  Akkordzuschlag

Determination of the minute factor

     = Akkordrichtsatz  :  60

Determination of the default time

     = 60  :  Normalleistung

Determination of the gross wage

     = Minutenfaktor  *  Vorgabezeit  *  geleistete Stück

Determination of the performance level

    = (Istleistung  :  Normalleistung)  *  100

Piece money piecework wage

Determination of the unit money rate 

     = Akkordrichtsatz  :  Normalleistung

Determination of the gross wage

     = Stückgeldsatz  *  Istleistung

Measurement examples

The amount can be measured according to various criteria :

See also

Individual evidence

  1. ↑ REFA - Association for Work Studies and Business Organization e. V. (Hrsg.): Methodology of business organization: Pay differentiation . 2nd edition Munich: Hanser, 1989 ( ISBN 3-446-12704-6 ), p. 32.
  2. ↑ REFA - Association for Work Studies and Business Organization e. V. (Hrsg.): Methodology of business organization: Pay differentiation . 2nd edition Munich: Hanser, 1989 ( ISBN 3-446-12704-6 ), p. 39.