Remuneration

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 What factors 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

Questions 1. 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 be piece rate pay or time rate pay?

Sewing jeans Working in a

restaurant Marking exam

papers Washing cars Playing in a band at

a wedding Driving a taxi Working at a check-

out in ASDA

Can you think of any that could be both? Why?

Mechanic Selling cars Librarian Selling houses Baby sitting Tutoring Working in a pub Hairdresser

Payment by results:What monetary incentives could you offer to make 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 What other things would you want, that

could be used as a reward instead of money?

Evaluate if remuneration is a good incentive to motivate workers.