Methods of Pay

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Flat/fixed rate -

Get payed the same each month

E.g.

Teachers

Managers

Administrators

Advantage -

Able to plan because of knowing how much money they will receive

Disadvantage -

Worker is not motivated because they will get paid the same regardless of what they do

Commission

Receive percentage of the amount of things they sell

E.g

Car Sales people

Advantage -

Motivation

May be difficult to sell

Easier to see who's working productively

Disadvantage -

If it is difficult to sell, employees may leave

Time Rate

Paid by the hour

E.g

Shop assistants

Factory Workers

Advantage -

Paid for all hours at work even if you're not working

Everyone receives same rate for the same job

Can be paid for over time

Disadvantage -

Employer has to pay regardless of how much work they did

Employee may work slowly in order to do overtime for more money

Over time

Paid extra for working over your normal hours

E.g. Shop Assistants

Advantage -

Reward

Motivation

Better work

Disadvantage -

Employee could work slowly in order to do over time for more money

Increases wages bill of company

Some employees may say no to over time

Piece Rate

Paid for how many products they produce

E.g Factory Workers

Advantage -

Faster

Pace yourself

Paid by ability so it's fair

Disadvantage -

Need for speed may produce bad work

Slave Labour

Bonuses

Extra money awarded for good work

Advantage -

Motivates

More productive work

Less Customer Complaints

Disadvantage -

Targets must be realistic

Jealousy within the other people

Money alone may not motivate some people

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