Compensation based mostly on output, reasonably than hours labored, is a system the place workers are paid a certain quantity for every unit they produce or motion they full. As an example, a seamstress would possibly obtain $5 for each garment sewn, or an information entry clerk may earn $0.10 for every document processed. The full earnings rely straight on the amount of labor accomplished.
This methodology of remuneration can inspire elevated productiveness and effectivity, as earnings are straight tied to efficiency. Traditionally, it has been employed in manufacturing, agriculture, and numerous industries the place output will be simply measured. Its enchantment lies in aligning worker compensation with enterprise outcomes and incentivizing staff to maximise their output. It may additionally provide flexibility to staff, permitting them to doubtlessly enhance their revenue by finishing extra work.
