Methods of Pay

Flat/fixed rate -Get payed the same each monthE.g. Teachers ManagersAdministrators Advantage -Able to plan because of knowing how much money they will receiveDisadvantage -Worker is not motivated because they will get paid the same regardless of what they do

CommissionReceive percentage of the amount of things they sellE.gCar Sales peopleAdvantage - MotivationMay be difficult to sellEasier to see who's working productivelyDisadvantage - If it is difficult to sell, employees may leave

Time RatePaid by the hourE.gShop assistantsFactory WorkersAdvantage -Paid for all hours at work even if you're not workingEveryone receives same rate for the same jobCan be paid for over timeDisadvantage - Employer has to pay regardless of how much work they didEmployee may work slowly in order to do overtime for more money

Over timePaid extra for working over your normal hoursE.g. Shop AssistantsAdvantage - RewardMotivationBetter workDisadvantage - Employee could work slowly in order to do over time for more moneyIncreases wages bill of companySome employees may say no to over time

Piece Rate Paid for how many products they produceE.g Factory WorkersAdvantage - FasterPace yourselfPaid by ability so it's fairDisadvantage - Need for speed may produce bad workSlave Labour

BonusesExtra money awarded for good workAdvantage - MotivatesMore productive workLess Customer ComplaintsDisadvantage -Targets must be realisticJealousy within the other peopleMoney alone may not motivate some people

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