Paying a "Piece Rate" along with a salary

[DariusCool]

Good Morning,

I was looking for some feedback / experience from those who have implemented or seen a business which pays a salary and then a "piece rate".

I was hoping to create a structure where a salary is paid, to offer security and meet minimum / living wage criteria, but then a piece rate for every job they complete (repairing electrical equipment).

Look forward to any input or ideas.

Darius

 

[WaveJumper]

I thought the term "piece rate" went out with the ark, why not just pay the "proper" going rate for the job, I would have thought repairing electrical equipment is quite a specialist role

 

[DariusCool]

I thought the term "piece rate" went out with the ark, why not just pay the "proper" going rate for the job, I would have thought repairing electrical equipment is quite a specialist role

I was looking into it as being an incentive. It rewards those that do more work

 

[eteb3]

There are legal considerations:

Minimum wage for different types of work

Minimum wage rates for different types of paid employment - time work, output work, unmeasured work, salaried hours work.

www.gov.uk

Practically, piece-rate is better suited to volume work where there is the same repeated task. I would guess each repair is different, so it may be hard to apply the fair rate test

If it's an incentive, rather than a means of managing workers you can't supervise, I would call it a bonus. And don't make it too big a proportion of the wage: there's plenty of evidence that pay-per-task reduces overall motivation.

 

[WaveJumper]

My dear departed father was a Docker, line up, raise your hand and hope you got picked for a gang, all piece rate, how quick can you unload the ship and move on to the next (no quality involved) times have changed. I would suggest you want quality not unrealistic volumes.

As above, consider a bonus structure based on performance / quality of work, as they say pay peanuts you get monkeys

 

[DariusCool]

The company gets paid £X per repair, I am looking at a way of fairly distributing this to those that earn it if there is currently such a thing