Piece-rate System Of Performance
Piece-rate System Of Performance
The piece-rate system represents the ultimate relationship between pay and performance as a method of compensation that pays workers based on the number of units produced.
Several years ago I worked for a company in Bowling Green, Kentucky. My position with this company was a data entry operator. The firm processed information for the post office and the video images were pieces of mail. I basically sat at a computer and inputted information from the mail images that appeared on the screen. The way the pay system worked was that there were a minimum number of images that I had to process per hour. Not only was the pay based on the number of items processed, but it was also based on my accuracy level. Once I met the minimum requirements, my base pay was $14.50/hour. If I did not reach the minimum, then my base pay for that day was $9.00/hour. Any additional items that I processed were rated on a scale. If I processed 10% more than the minimum, then my pay increased by $5.00. Throughout all of this, if my accuracy level decreased or was not maintained, then that too was taken into consideration. The incentive for me was to work extremely hard and to make sure that I was maintaining my 95% accuracy level, so that my paycheck would cover my debts. The program worked, but it was extremely difficult to maintain the company’s expectations. One of the most difficult aspects was that there numerous occasions when the total number of items that came through the system in one hour was less than the minimum requirements. At this point, the company had to adjust everybody’s pay scale. Another downfall with this system was that there were, on average, thirty other people trying to get the images in order to meet the minimum requirements. I could sit there for twenty minutes and never gain access because there were so many people fighting for the images. I only worked for the company for three months. During this time, I made pretty good money, but from week to week, I had no idea what my paycheck was going to be. If I performed exceedingly well, my pay was excellent. If I performed below the expectations, my pay was mediocre.