Piece Rate System/ Payment byResults System
This is the easiest system of payment. A worker receives payment depending on the amount of items he produces. Management does not have a problem determining the items of production and the number each worker produces. Workers determination and hard work are the determinants of the amount they receive at the end of the day.
Benefits
It is very easy to measure a workers output which makes the system’simplementation quite easy. Secondly, workers are motivated to work harder. This is because the more they work the more they get.
Disadvantages
Sometimes, workers may compromise quality of work in an attempt to produce more items. The effects of this are spiraling as it leads to direct customer dissatisfaction, which may result in lost business. It also does not recognize the human aspect of employees. Motivation comes from more than just making money. In other terms, it projects money as the only motivator of human beings, whichis not true.
Salary Payment System
This system rewards employees after a certain period. Normally, it is a month. Workers report to work and leave after a certain period.
Benefits
The workers get motivated because they do what they love. Their input does not go through rigorous measuring procedures. Hence, performance of an employee stems from other factors, which may or may not include money. Secondly, employees find it fair. This is because there are those workers who are faster than others are and may always end up getting promotions if a company adopts other methods. Thirdly, the company rests assured of quality work. The employee inputs everything possible skill to produce quality work (U.S. Merit Systems Protection Board, 2006).
Disadvantages
An organization may not always measure each workers output correctly. This means some employees may take advantage of this policy to laze around at the expense of others for an equal pay. Consequently, management should take careful interest in each worker’s output, though in a subtle way. It is also a permanent expense in the books of the company despite revenue performance.
Hourly Payment System
Under this system, workers receive payment on hourly basis. This is the most beneficial payment system on the side of employees. Normally, consultants, lawyers and others who offer professional services use and prefer this payment system. This is because they are not permanent employees of a particular company. They are engaged in one-off decisions or solutions.
Advantages
The company or organization that engages this services pay for them only once. Therefore, this expense does not feature in the books of accounts permanently. Secondly, since the process of selection happens only once, the company is in a position to pick the best that can offer the service. This guarantees them best services. Another outstanding advantage is the fact that a company can always outsource these services since they do not form a core business function per the definition of the company (U.S. Merit Systems Protection Board, 2006).
Disadvantages
The payment associated with these services isnot standard. Different providers offer different services and charge differently. This means a company can only come up with a certain range of acceptability. Nonetheless, it may lead to overpayment. Because of the nature of the reason for sourcing the professional service, a company may incur huge costs. For example, an unexpected lawsuit or a disaster that requires professional public relations.
ComparableWorth
This is a new workplace doctrine that attempts to ensure that jobs that require similar professional or educational qualification receive equal compensation despite male or female predominance or perceived ‘fit to do the job’ status. Traditionally, as many studies confirm, women dominated professions with similar qualifications as parallel male dominated professions comparatively get lower compensations. These jobs include elementary education, childcare and health care (Ander and Velasquez, 2011).
This discrepancy prompts rights activist to propose equality. However, workplace traditions dictate that this is something that exists from a long time ago. Its implementation is a paradox. Employers do not know how to go about this. It is as if socialization precisely gears women towards least paying disciplines.
However, as employers argue, it is impossible to adjust such payments to fit into the new social demands placed upon them by the advocates of comparable growth. Should they pay more in salaries and risk going down just to meet social pressure? (Ander and Velasquez, 2011).
The legal systems propose that every individual should receive equal treatment at work. The constitution guarantees workers’ rights. Therefore, employers have a responsibility to uphold the same. However, it is almost impossible to compensate different professions by men and women equally.
This is because, socially and traditionally, these professions do not generate as equal revenues. Additionally, the risks associated with the women dominated professions are less. The way is narrow for employers to walk as they attempt to bridge this gap without risking legal processes (Ander and Velasquez, 2011).
References
Ander, C. & Velasquez, M. (2011). Comparable Worth. Retrieved from https://www.scu.edu/ethics/focus-areas/business-ethics/resources/comparable-worth/
U.S. Merit Systems Protection Board. (2006). A Report tothe President andtheCongress ofthe United States. Web.