Piece Rates
Pay for Performance
Incentive Pay
The purpose of piece rates, or any incentive pay for employees,
is to motivate employee performance
in return for a monetary reward.
A simple, valid concept which is centuries old.
Today there is great interest, especially for construction activity.
Please Read On for general information, as well as specific suggestions for success.
Piecerates and incentives benefit the business and motivate employees.
An effective incentive or piecework plan can be developed to have these features:
- Employees can earn more, through individual skill, effort and consistency.
- As work is performed faster, projects are finished earlier for better organization cash flow.
- Labor costs are more predictable, and relate more closely to estimated times or standard costs.
- A simple pay plan, transparent and fair, is administered without undue clerical effort.
- Reporting is often improved, to identify delay and waste for quick improvement..
- Rates can be tailored with unique features for employees or departments with different characteristics.
JPR can maximize the benefits, quickly
We are experienced in piece rates, in union and non-union application.
JPR can establish rates by time study, from your estimating data, or by recognizing local prevailing values.
JPR can set up or modify piece rate pay plans quickly, as we tailor our proven manuals, forms, reporting,
calculating and procedures to your situation.
A comprehensive plan may require only a week or so depending on the number of tasks to be covered and what
time-related data is available.
Piece rates may, probably will, require more careful reporting
A key factor to recognize is that workers on piece rates must still be paid at least the minimum wage, state or Federal;
and that all work hours must be considered in the minimum wage calculation. As a result, reporting must record not only
the production on which piecework is applied but also timekeeping of all hours, and the arithmetic to assure that the
letter of the law is followed.
Piece rates involve bookkeeping and labor law in addition to the expectations themselves. It's a good idea to
involve the company lawyer and CPA in any pay plan.
What Now?
Your particular objectives and circumstances are unique.
One size does not fit all, because a number of factors affect a piecerate plan.
No one web page can address your particular issues, or create ideas to resolve
your particular circumstances, but a phone call can often start to do so. Please contact us,
and we'll be glad to answer questions and offer guidance, at no cost or obligation.
or, call Jack Greene at 843-422-1209.
Piece Rates Apply in Many Operations
Incentive pay has traditionally been set in factories, and piece rates have long been used
in the apparel industry. But other labor intensive activity is also well suited for incentives or piece rates, and JPR is
qualified to install them in traditional and new settings.
- Construction; masonry, block, brick, slabs, beams, electrical, dry wall and sheeting,
stucco application, painting, piping and plumbing, carpentry. roofing
- Installation for commercial or home; HVAC, electronics, security, TV, irrigation,
flooring, appliances, septic tank, energy equipment such as windmills and solar panels
- Hotel housekeepers, maids
- Janitorial and custodial, buildings, public facilities, schools
- Maintenance with a clear work description such as preventive maintenance