Specification Detail Remuneration: the impact on staff of various payment strategies, including time v piece rate, commission, full time salary v freelance work; fringe benefits The impact on business of different payment systems
Lesson Objectives To define remuneration To understand how each type of remuneration benefits a business To identify which style of remuneration suits a businesses
Video Clip Whatfactors affect the level of pay people get? Here
Key Words Remuneration is the payment of employees Match up the remaining key words…. Wage Remuneration Salary Commission Piece rate pay Time rate pay
Questions1. Do you think Mrs Fonfe is on a wage or a salary? Why?2. Create a spider diagram for the positive and negative effects of both piece and time rate.3. Justify which type of commission you would prefer in your job; bonus; performance related pay or share option schemes
Sort which jobs are most likely to bepiece rate pay or time rate pay? Sewing jeans Mechanic Working in a Selling cars restaurant Librarian Marking exam papers Selling houses Washing cars Baby sitting Playing in a band at Tutoring a wedding Working in a pub Driving a taxi Hairdresser Working at a check- out in ASDACan you think of any that could be both? Why?
Payment by results:What monetary incentives could you offer tomake people work harder? Bonus: Extra payments over and above the basic wage or salary. Commission: Sales people may be p[aid a salary, plus a commission (a percentage of the value of their sales) Performance related: Payment when you reach an agreed target. Share option scheme: Allowing (and sometimes giving) workers to buy shares in the business. The better the business does, the more money they earn.
Fringe benefits Whatother things would you want, that could be used as a reward instead of money?
Evaluate if remuneration is agood incentive to motivateworkers.