Posted by The remuneration of each employee can be paid in one of five forms: time-based, piecework, bonus, task-based and commission-based. The time-based form, which was the most popular until recently, involves compensating the company’s employees based on working time. Despite the obvious disadvantages of such a system of motivation for the employer – the lack of a link between the commitment and skills of the employee and the results of his work and his salary – this way of shaping salaries is considered beneficial by the beneficiaries themselves. This is because one of the basic needs of an employee – the need for security and social stability – is met in this way.
Few people are able to work in a commission-based work system, which is the opposite of temporary work. Although theoretically an employee should feel more motivated to make an effort and get positive results – if he doesn’t complete a task, he won’t get paid – in practice a system based solely on commission on turnover of, for example, products sold gives rise to frustration and a desire to change jobs. It’s better when commission-based pay is tied to a fixed salary for the time spent working.
Piecework is designed to link pay and employee performance. It also increases commitment and responsibility for work performance. Nevertheless, with the exception of agriculture and some manufacturing industries, it is rarely used in practice. The reason for this is the atmosphere of strong rivalry between team members, which weakens the motivation caused by the vision of additional income. The synergistic effect is then lacking. Team work, unlike the usual, does not bring greater results compared to the sum of the results of the work of all its members.
The task-based form of payment of wages involves paying an employee’s emoluments for a task performed, which was agreed upon in advance by both parties. This way of paying wages is used for most civil contracts, such as a contract for work or a contract of mandate. On the one hand, the employer knows the cost of labor, and the employee is guaranteed an income in advance if the task is completed. On the other hand, however, a person who has been employed for a long time under a civil contract and is rewarded in this form may lose motivation due to the high uncertainty of income even in the near future.
Bonus form of remuneration is used as an additional component of remuneration constructed on the basis of all other criteria. The bonus should strictly depend on the performance of the employee, although in reality, especially in state-owned enterprises or institutions, it is based on previous seniority or position held. The bonus is supposed to motivate people to repeat positive actions in the future. It also provides an opportunity to increase monthly emoluments.