Budgeting

How to pay in production

How to pay in production

Video: What is PAY ON PRODUCTION? What does PAY ON PRODUCTION mean? PAY ON PRODUCTION meaning & explanation 2024, July

Video: What is PAY ON PRODUCTION? What does PAY ON PRODUCTION mean? PAY ON PRODUCTION meaning & explanation 2024, July
Anonim

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 paying cash compensation most effectively?

Image

Instruction manual

1

Decide on the form of payroll. Distinguish between time and piecework patch. In the first case, the time actually worked by the employee is paid based on the rate or tariff per unit of time, usually 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. Piecework system involves payment of a certain amount of work or manufactured units of production. Also, remuneration may be piecework-bonus or piecework-progressive (the more the employee made, the more money is paid for each unit of production). Consider the nature of your production and choose the most suitable option.

2

Plan your payroll plan. This is one of the main components of the cost budget, so consider the possibilities of production, the market situation and other features of the financial situation. Please note that the fund must take into account the payment of annual leave and sick leave, the payment of the thirteenth salary and other expenses.

3

Get workers interested in getting more wages. To do this, the following system is introduced at many enterprises: the employee receives a small guaranteed salary and a significant percentage of the company's profit. 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 on time. With a simple time-based payment, a person receives money not for the fact that he works, but for being at work. This often leads to the fact that a person simply “sits out” the set hours, and the business does not move.

4

Consider a system of bonuses and rewards. Prizes can be awarded not only for a holiday, after a certain period or the completion of a major project, but also for completing a particularly difficult task, winning a domestic competition and for other reasons. Award is an effective measure to increase labor efficiency.

Recommended