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A Smarter Way to Get Paid

The majority of companies employ their While the bad staff stay bad and the good
staff on a time basis. The employee is staff turn bad and demoralised, the SEO
contracted to work so many hours each sits in his
week and is paid for each one of those ivory tower saying that it is too hard
hours.The questions to pay on performance indicators rather
is....why?Pay-for-Time versus Pay-for than by time alone while. Poor thing.
PerformanceIf an employee is employed Let's put the SEO on a pay-by-performance
simply to be somewhere and not have any system and see if things change! Yes,
other function then it may be let's take away his salary and give him a
understandable that they are paid solely small chunk of the company. Now he is a
on how many hours they are there. A few - part-owner, how does he feel about
very few free-riders using up his
- examples come to mind: perhaps a money?ProgressPay-by-time goes back to
security guard who simply reports what he factory work and sweat shops from the
or she sees or is simply there as a last century and the century before, when
deterrent to would-be thieves; perhaps the machines kept running and the staff
somebody who is employed to monitor how simply had to turn up and sew, or put
many cars pass through a particular this gismo into that gismo etc. Yes,
junction. Hey, wait a minute, surely the there are still sweat shops around the
security guard needs to look smart and world, but even
have many of them are more sophisticated
his or her top button fixed; the these days with staff being paid on
car-counter must ensure that an accurate quality
record is being kept?Well, the more criteria. In fact, many factories are
enlightened companies tend to pay on a leading the way in pay-for-performance. I
mixed basis with time still being the would say that it is in administration
main element and quality elements such as and even is some
smartness or accuracy, for example, being professional work where there is a
used to top up the salary. However, with stubborn lack of progress.Chef
many jobs should this be taken one stage ExampleTake, as an example, a chef. I
further? Surely most companies want their would class this as a professional job.
staff to complete the tasks they have Yet many
been establishments pay their chefs according
set? Many jobs are not directly to how many hours they have worked. OK,
dependent on the clock at all. They are they may not clock on and clock off, but
more dependent on getting the job done. they will be expected to put in a week's
Admittedly, a call-centre salesperson may work for a week's pay. As an illustrative
be tied to their desk (some might say example only, why
chained!) for a fixed period of time. not pay on this basis:Weighting
Yes, they have tasks to Aspect60%
fulfil, but they are governed largely by Profit achieved20%
the clock. However, the labourer, Michelin Star (or similar)10%
electrician, plumber, postman, sales
manager, buyer etc etc are largely judged Health and Safety Record10%
on getting the job done. Why shouldn't a
fast postman, for example, be allowed to Cleanliness and Food Safety RecordOK,
go home early on full pay - if they have the Michelin star element is a little
completed their round? By the same token, ambitious for most restaurants, but there
shouldn't the slow postman be made to are equivalents at lower
stay until the job is done, without any levels! The health and safety record
extra pay? Further still, shouldn't the speaks for itself: accidents can be
fast postman be permitted to carry out a banded into grades of
second round in one day and double his seriousness. Cleanliness can be measured
pay? Of course I have simplified the by having an outside independent agency,
argument to make the point. Many postal or the boss, if you like, carrying out
organisations do have a policy of paying random inspections against predetermined
for the round (or perhaps paying criteria. You see, as long as it's
according to how many letters are posted) measurable, then a fair system of
- but many do not. Why? Why are so many remuneration can be built around it. If
companies paying on a time basis when the chef works for 90 hours a week to
this does not fit the goal of the earn a decent living then, so be it (it
organisation? Take builders. If a house may be worth his while looking for
could be built simply by having a load of another job). If, on the other hand, chef
builders turn up on time and stay for 8 has set things up so efficiently that he
hours each day then house building would only needs to pop in for few hours a week
be very easy indeed. No, builders should to achieve his goals and therefore earn
surely be paid for their productivity. a good living then good luck to him! The
Turning up for 8 hours a day doesn't business
really come into it.Speed versus QualityI is obviously thriving and the chef
think I partly know the answer to my own deserves his time off. In this situation
question. I have omitted quality, of an ignorant owner might sack his
course. Take builders. Just being fast is successful chef and pocket the money for
only part of their job. They also must himself. Wrong wrong wrong again. If a
work safely. Skilled builders must do a manager, or any member of staff is paid
quality job, not just hit the deadline. for doing a good job, rather than merely
The postman must post the letters to the turning up AND ends up doing just a few
right hours a week, then that employee is ready
addresses: if he tries to squeeze in an for promotion. I would say to
extra round he may not achieve this in the restaurant owner: hurry up and open
the rush. Because this balance must be another restaurant and get your chef
struck in most jobs - the speed versus running two so he can double his pay and
quality balance, it is easier for you can get a healthy return.Rabbits and
companies to simply pay on a time basis, HatsPay by time can be very unfair. Many
and manage staff within that staff quietly and conscientiously get on
framework.Too Complicated - Too with their work and do a good job. They
DifficultIsn't this laziness on the part get ahead of the game, smoothing over
of employers? Wouldn't is be better to future problems, removing barriers before
analyze each job and work out the best they appear. Others are
way to pay staff. Surely the salesman's fire-fighters. They don't anticipate
salary should be mainly weighted towards looming problems and hit them head-on,
sales with minor weighting given towards sometimes failing to solve them. Other
administration, keeping up corporate times they dramatically solve such
policies and image etc. Shouldn't a problems themselves and grab the
labourer's pay be weighted with safety headlines and become the hero. These are
record at say 55% and productivity at the people that get noticed. They put
45%? And what about our postman, rabbits in hats and then pull them out
wouldn't it be better if his pay rewarded again. They are the ones that get
quality and speed in roughly equal promotion while those that prevent
measure? No, say many employers, this problems in the first place go unnoticed.
would not be better, it would be very Now, with a pay-by-performance system,
complicated. Speed could be measured such
fairly easily but quality aspects require fraudulent and unfair practices would be
judgements. There are bound to be exposed.Fly KillersIn our business we
anomalies and accusations of unfairness, sell fly killer machines that use
say employers. It's simply easier to pay ultra-violet lamps to attract and kill
by time, make sure the staff turn up and flies. The ultra-violet emissions, that
then work on them.I say that is the lazy are the main attractant, degrade after
approach. I don't accept that most about a year and the uv bulbs need to be
quality measurements changed. We also sell a gadget called a
boil down to human judgement. Most UV Light Tester. Those that are
measurements can be devised using conscientious - who want to change uv
established bulbs at the optimum time - have
criteria, often simply based on purchased the u.v. Light Tester from us.
mathematics.UnfairnessIt's unfair when a They will not suffer from inexplicable
hard working member of staff is working fly infestation nor will they have their
alongside a lazy here-for-the-ride premises closed down by the
good-for-nothing waste-of-space employee Environmental Health Inspector. Those
and both are paid by time and both on the that buy this gadget would surely be paid
same rate of pay. That is surely unfair. well under a pay-by-performance system!




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