Compensation primarily based on output, somewhat 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 illustration, a seamstress may obtain $5 for each garment sewn, or a knowledge entry clerk might earn $0.10 for every file processed. The entire earnings rely straight on the quantity 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 attraction lies in aligning worker compensation with enterprise outcomes and incentivizing employees to maximise their output. It might probably additionally supply flexibility to employees, permitting them to doubtlessly enhance their revenue by finishing extra work.
