Hourly wage: pros and cons
There are different forms of remuneration. In the West, and in recent years, and we have, popularity of hourly wage. So whether it is good? The pros and cons of hourly wage will help you understand the country of the Soviets.
Many companies use a tariff-free wage system. In this case, the salary of an employee depends not only on personal success but on the success of the entire enterprise or its departments, as well as the amount of payroll. Tariff system of remuneration implies the outcome of a specific employee (the amount of work performed or the amount of time worked). Thus, the tariff system of remuneration includes the following forms of remuneration: piecework, time-based and mixed.
Hourly wage – this is a special case time-based forms of remuneration. It applies in the case that it is difficult to standardize the work of the employee. You can count the number of parts, which has made the working hours, but how to evaluate the work, for example, a teacher? Of course, if hourly wage is taken into account not only the workplace, but also the qualifications of the employee.
Hourly wage may be different. Simple hourly pay implies a fixed cost of one hour of work regardless of the outcome, which demonstrates the employee. It is used in cases where performance does not play a significant role. If hourly wage is taken into account the quality or amount of work performed, the hourly rate is added award. The amount of the premium agreed in advance. Finally, hourly wage with a standardized assignment in addition to the payment for one hour of work implies a surcharge for the accurate performance of the task. It is used in cases when the fulfillment of the plan is more a disadvantage than an advantage.
The tariff rate is calculated subject to the minimum wage. According to the labor standard working time is 40-hour working week. This term cannot be exceeded, but the number of working hours per week may be less – for example, when part-time employment. Then the minimum cost of a working hour is calculated based on the minimum wage and the length of the workweek. The tariff rate can be higher than the minimum, for example, taking into account the complexity of the work or qualifications of the employee, but not below. When hourly wages are calculated by multiplying the rate of charges on the number of hours worked.
Than hourly wage is advantageous for the employer? First, time is always of the same duration, in contrast to the working day. Fixed cost of working hours will enable the most accurate method to calculate earned by any employee amount, given the absence in the workplace for various reasons. Second, the hourly wage allows optimal to pay the workers, working incomplete working day or a week working part-time or flexible schedule. Thirdly, it saves money – you pay employees only for actual time worked. Fourth, hourly earnings will help monitor how effectively your employees use their time.
To disadvantages of hourly wages for employers include the complexity of the calculation (must keep strict account of working time of each employee), and ineffectiveness of the hourly wage without bonuses. Besides, saving on the payment of already hired employees, you will have spent on the wages of another, who will control the working time of their colleagues.
And what about the employees themselves? Whether to agree to them on an hourly wage? If you want to work part-time, flexible hours or part-time, then hourly wage – what you need. Also hourly wage choice to employees working day which may not be clearly specified for example, a teacher. One day he may have two pair, and the other with all six. Often, hourly pay is used for payment of labor Tutors. childminding. cleaners, etc. Hourly wage is also suitable for waiters, cooks and bartenders with an incomplete working day (of course, with the surcharge, for example, for night hours work). If you are a student and looking for a summer job (for example, a promoter or by courier) – you likely also will pay for an hour of work. Hourly pay with convenient uneven workload. Let's say you know that in the beginning of the month you have little work so you have slack, and at the end of the month leans the work and you sit overtime. In this case, it makes sense to negotiate flexible hours and hourly wage – you will know that get money for something that really worked.
However, some unscrupulous employers try to squeeze out the employees maximum, so they set a large amount of work for one hour. If you can not cope with it – you will not end up in the premium to the minimum rate. Besides, if you had not insisted that the employer fixed hourly wage in the employment contract. it does not fundamentally will differ from the “shadow” salary in an envelope. Be sure to in the employment contract it was stipulated that the payments to you in proportion to time worked.
And yet, good or bad hourly wage? It depends on your occupation, the desired schedule of work and the integrity of the employer.