People Processes
Should I Pay My Employees a Flat Rate by Budget or by Actual Hours Worked?
- Autor: Vários
- Narrador: Vários
- Editor: Podcast
- Duración: 0:15:56
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Sinopsis
[youtube https://www.youtube.com/watch?v=KmjNGQGvsKg] A group of mechanics employed at a South Carolina chain of tire and automobile repair stores was paid under a compensation plan that contained two components. They received an amount determined by multiplying the particular mechanic’s “flat rate”;—an hourly pay rate assigned to each mechanic based on that mechanic’s particular skill, experience, and certifications—by the mechanic’s " turned hours," a pre-established amount of time designated by the employer for each mechanical task, for all tasks completed by the mechanic during the relevant pay period. The compensation for turned hours did not account for the actual time spent working on a particular task or during the pay period overall, however. Instead, it was based exclusively on the number of tasks completed and the pre-assigned turned hours for such tasks (the same measure of turned hours used to form a mechanic’s pay for a particular task also was used as the basis for the labor c