Piece Rates
Pay for Performance
The purpose of piece rates is to motivate employee performance
in return for a monetary reward.
A simple, valid concept which is centuries old.
Today there is great interest, especially for construction activity.
Piecerates can be developed to benefit the contractor and to motivate tradesmen
An effective piecework plan will have these features:
- Tradesmen can earn more, through individual skill, effort and consistency.
- As work is performed faster, projects are finished earlier.
- Labor costs are more predictable, and relate more closely to estimated times and local bid values.
- A simple pay plan, transparent and fair, is administered without undue clerical effort.
- Field reporting is often improved, to identify delay and waste.
- Rates can be tailored to contractors and subs, to commercial or residential, multi-unit or single unit,
custom architecture or large developments.
JPR can maximize the benefits, quickly
We are experienced in piece rates, in union and non-union application.
JPR can establish rates by time study, from your estimating data, or by recognizing local prevailing values.
JPR can set up or modify piece rate pay plans quickly, as we tailor our proven manuals, forms, reporting,
calculating and procedures to your situation.
A comprehensive plan may require only a week or so depending on the number of tasks to be covered and what
time-related data is available.
Piece rates may, probably will, require more careful reporting
A key factor to recognize is that workers on piece rates must still be paid at least the minimum wage, state or Federal;
and that all work hours must be considered in the minimum wage calculation. As a result, reporting must record not only
the production on which piecework is applied but also timekeeping of all hours, and the arithmetic to assure that the
letter of the law is followed.
Piece rates involve bookkeeping and labor law in addition to the expectations themselves. It's a good idea to
involve the company lawyer and CPA in any pay plan.
What Now?
Your particular objectives and circumstances are unique.
One size does not fit all, because a number of factors affect a piecerate plan.
click here for a free list of these key factors.
Use it to identify for yourself just what applies in your circumstances. Then if you wish,
send your outline to me and I'll offer comments, at no cost or obligation.
or, call Jack Greene at 843-422-1209, 626-375-2468 in California.
Piece Rates Apply in Many Operations
Piece rates have traditionally been set in factories,
especially apparel. But other labor intensive activity is also well suited for piece rates, and JPR is
qualified to install them in traditional and new settings.
- Construction; masonry, block, brick, slabs, beams, electrical, dry wall and sheeting,
stucco application, painting, piping and plumbing, carpentry. roofing
- Installation for commercial or home; HVAC, electronics, security, TV, irrigation,
flooring, appliances, septic tank, energy equipment such as windmills and solar panels
- Hotel housekeepers, maids
- Janitorial and custodial, buildings, public facilities, schools
- Maintenance with a clear work description such as preventive maintenance