Our civilization is called a "consumer society", and if on one scale there is a buyer, then on the other - the seller. In a situation where the market for goods and services is crowded, as we can see today, for the business owner, the main question becomes not “how to produce”, but “how to sell”. Of course, advertising and various marketing tricks help in this, but a lot depends on the right motivation of the seller.
Soviet past
Once salespeople were paid a fixed salary, and everyone was happy with that. But this type of calculation is effective only in a situation where there is some shortage in the market, and buyers simply have no choice. Now at every step we see stores with shelves full of goods, and numerous companies that provide any, even the most exotic services, so the seller must be competent and active so that the buyer does not go to the neighbors. Of course, this requires both staff training and the creation of a positive reputation for the employer, but motivation comes first. Therefore, to replace the Soviet fixedrates came piecework wages, in which the staff receives as much as they really earned.
Percentage of sales
So, the development of the economy requires new approaches to payroll. Let's figure out what constitutes piece-rate progressive wages. Piecework - means that the payment depends on the "deal", that is, on the volume of sale or production. Progressive - the higher the amount of revenue, the higher the payment for each unit. Let's look at an example.
Piecework:
Let's say a clothing salesman gets 10% of the sales. Then:
- Sales 300 thousand rubles.=30 thousand salary.
- Sales 500 thousand rubles.=50 thousand salary.
Piece-progressive wages: the percentage of payroll increases with the growth of revenue. For example, for an additional 100 thousand, 5% is added, for 200 thousand over the norm - 6%, etc.:
- Sales 300 thousand rubles.=30 thousand salary.
- Sales 500 thousand rubles.=62 thousand rubles.
Make it harder
There is also a more complex (and interesting) piecework-progressive form of remuneration. At the same time, the increased percentage is calculated not only from additional revenue, but also from the main one. That is: let's take the same rate of 10% and a surcharge of 2, 3, 4%, etc. for each additional 100 thousand, but this surcharge will already work for the entire amount:
- Sales 300 thousand rubles.=30 thousand salary (10%).
- Sales400 thousand rubles=48 thousand salary (12% of the total).
- Sales 500 thousand rubles.=65 thousand salary (13% of the total amount);
Of course, in a large enterprise, it will not be easy to calculate piecework progressive wages, and this is the main reason why such a scheme is used mainly in sales of goods and services. Below we will look at a formula that can be used in a manufacturing plant.
Why is this necessary
It would seem that the usual piece-rate payment also works well. So how is piecework-progressive wages better? Of course, motivation! If the employer pays a flat rate, there is a high risk that the employee will not try very hard: he knows for sure that he will receive the same amount in any case. With a simple piecework salary, motivation already arises, but numerous observations of personnel in various areas have shown that many employees set the bar for themselves (“well, I have earned 30 thousand, you can relax”). But piecework-progressive wages constantly motivate to work more and more, because by making the same efforts, you can get not 50, but 60 thousand. Especially if the option is used when the growing coefficient is applied to all revenue (or output), and not just to the amount in excess of the norm. In this case, there is a feeling that, without making additional output, the employee seems to lose part of the salary that he could have received.
Underwaterstones
Despite the fact that the piece-progressive wage system has worked well, it is not used as often. The main reason for this is the reluctance of many leaders to change something. It is really not so easy to introduce a new system, for this you need to perform a number of actions:
- Monitoring the enterprise to make sure that the h alt in development is due to lack of motivation among employees.
- Calculate the multipliers so that they are sufficiently noticeable for employees and at the same time do not exceed the allowable consumption rates for the employer.
- Explain the new pay system to employees, show its purpose and benefits.
- Make sure the accounting department knows how to calculate piecework progressive wages.
The first two points are very important, since it is possible that the problems lie not in the lack of motivation at all, but in the unprofessionalism of the sellers or the shortcomings of the products/services. In addition, sometimes it is easier and more beneficial to hire an additional employee, instead of raising everyone's salary. New hires are often a good motivator in and of themselves as competition increases (plus there are suspicions that layoffs are coming).
Application areas
Above, we considered examples of the use of piece-progressive wages only in sales. This is no coincidence, since in other areas of the economy this type of calculation is more difficult to apply for several reasons:
- Significant increase in the volume of calculations: if in sales today managers often fill out preliminary calculations themselves, and departments, as a rule, have a relatively small number, then in production, the accounting department is forced to fully calculate the salary for a large number of employees.
- The production volume depends on the capacity of the equipment, the supply of raw materials and the time required to produce a unit.
- Risk of increasing marriage.
- The risk that an employee will be idle due to breakdowns or other circumstances beyond his control and will not be able to work out an increased rate.
- As production grows, so do variable costs.
Nevertheless, progressive piecework wages are used in both manufacturing and agriculture, although often not quite in the same form as in sales, and not as often.
Calculation types
Partial-progressive wages can have several forms that are used to simplify calculations or reduce risks:
- Bonus: for additional output or revenue, the employee receives a bonus, the size of which is higher, the greater the excess of the norm. This method is simpler, since the amount of the premium is clearly stated in the documents in advance and does not require additional calculations.
- Piece-time: used in those industries where there is a high risk of downtime. Here, the salary is conditionally divided into three parts: basic piecework + progressive (subject to excessnorms) + time wages for those periods when the employee was unable to perform his duties for reasons beyond his control.
- Indirect: Great for payroll for support departments (eg maintenance crew) or management. Their payments will directly depend on the amounts that will be accrued to the main production. Thus, repairmen will be interested in having as few breakdowns as possible.
- According: used for teams performing one-time work: construction or harvesting. If the work is completed ahead of schedule or in excess, the employer issues a bonus for the entire team, and then this bonus is distributed among the employees depending on the contribution of each of them.
Exact calculation
Because in each case different principles can be applied, according to which piece-progressive wages are calculated, the calculation formula will also be different each time. In large industries where such an indicator as standard hours is introduced, the following formula is often used:
ZP (general)=ZP (sd) + (ZP (sd) x (Pf - Mon) x K) / Pf, where:
- RFP (total) - final salary;
- RFP (sd) - payment at the basic rate for the entire output;
- Pf - actual production;
- Pb - standard production;
- K - progressive coefficient.
Statement in documents
In general, progressive piecework pay provides forpayment, the growth of which directly depends on the excess of the established norm of work efficiency, but the norm, as well as the form of calculation, may be different. Therefore, each enterprise makes its own decision on the principles for calculating payments, increasing coefficients, bonuses, and so on. If you decide to introduce a piece-progressive salary, then you need to:
- Develop a whole system of norms.
- Describe in detail the accrual system in the Regulations on wages and in labor agreements with employees.
- Ensure working conditions where staff will not be idle through no fault of their own.
- Establish a system to control the quality of work, so that in the pursuit of quantity, the percentage of defects does not increase or sellers do not start using incorrect sales methods.
To enter or not to enter
Piece-progressive payment is recognized by modern economists as one of the best systems, since, on the one hand, it allows for a more equitable distribution of wages, on the other, it serves as a simple but very effective motivation.
Of course, this form of calculation has its drawbacks: difficulties in accounting, the risk of aggressive behavior of employees or loss of quality, as well as an increase in salary costs, but with a competent approach, all this pays off. A good option would be to use two systems at the same time: piece-rate progressive payment along with premiums for high quality products or courteous treatment of customers. For large enterprises, indirect calculation may be of particular interest, when the salary of auxiliarydepartments depends on the output of the main departments, this helps to get rid of supply problems or long repairs.
The main thing is to remember that the profit of an enterprise depends on many parameters. And before introducing piece-rate progressive pay, make sure that all other problems in the enterprise are resolved.
