Various Methods of setting Pay
The words wage and salary are sometimes considered synonymous strictly speaking however they have slightly different meaning. Wage refers to at an hourly rate of pay and is the pay basis used most frequently for production and maintenance employees. Salary refers to a weekly, monthly, or yearly rate of pay.
Setting pay needs some methods to follow. Pay administration is an important part of managing a business. When you have a formal pay administration system in place, it helps control personnel costs, increase employee morale, and reduce workforce turnover. By consulting a number of books, we have collected these methods as follows:
- Time rate method,
- Piece rate method,
- Increase piece rate method,
- Measured day work method,
- Time-saving method,
- Emerson’s efficiency method,
- Group plan method,
- Halsey plan,
- Rowan plan,
- Bedaux plan,
- Differential piece rate system,
- Gantt’s task plan,
- Multiple piece rate system,
- Scanlon plan,
- The share of the production plan,
- Profit sharing plan,
- Sliding plan,
- Employee Stock Ownership Plans (ESOP),
- Modern Income security plans,
- Suggestions system.
