Each enterprise has a certain system of organization of payment for the labor potential of employees. It may have several components or contain only a share of wages in the form of a salary.
In order to avoid conflicts in the workplace, it is necessary to motivate employees to increase productivity in the workplace through rational organization of wages, one of which is a tariff-free system.
Essence
The tariff-free system of remuneration at the enterprise is a developed system, the essence of which is that the remuneration of each employee depends on the productivity and efficiency of his work and the work of his team as a whole. The staff does not know in advance about the amount that will be given to them at the end of the work.
An exceptional feature of the tariff-free pay system is the ability to motivate employees to improve their performance.
The tariff-free system is a methodologydetermining the remuneration of an employee of the company, taking into account his individual coefficient. This indicator is not constant. The calculation takes into account not only the length of service, but also the professional status of the employee, the level of his qualifications, the share of participation in the common cause, compliance with the level of success of the team as a whole, as well as specific results of human activity.
The salary of employees is distributed from the accrued fund of the total salary. The team that carries out specific operations or sales forms the amounts of the payroll fund from a part of the proceeds. Each employee's share is calculated based on their personal qualifications.
There are no single rules for calculating this coefficient. Calculation rules should be fair, realistic, simple and clear.
So, having fulfilled or exceeded the established plan, the employee can count not only on the standard salary, but also on the bonus, if it is provided for by the employment contract.
However, the essence of the tariff-free wage system ignores the minimum wage, overpayment for night shifts and holidays. The employee will receive exactly as much as he has earned.
A tariff-free system is a system in which the remuneration of employees is established from the total payroll, formed on the basis of the final indicators of the effective work of the staff.
The main elements of the tariff-free wage system are: the total amount of wages for all employees, the labor participation rate as a personal contribution of each employee to the final resultslabor.
When studying this coefficient, the following points can be taken into account:
- employee skill level: the ratio of the employee's salary to the minimum wage;
- share of the employee's personal contribution to the common cause;
- employee participation;
- complexity of the work performed by the employee;
- volume and number of operations performed by an employee.
The tariff-free wage system also includes several other criteria. They can all be summarized into a single complex indicator called rating.
A tariff-free wage system is based on the concept of labor achievements. Both collective and individual labor achievements are taken into account. Most often, it is effective in small companies, where employees must complete the established plan during the reporting month.
The essence of the tariff-free wage system is monthly payments that enable employees to receive their bonus part of the salary. At the same time, the total amount is not divided into equal shares between employees, but in proportion to the positions of employees. For example, the director - 1, 3; deputy head - 1, 0; for employees and workers - 0, 8.
This settlement system includes special separate payments, which are formed under the influence of several factors:
- employee skill level;
- KTU;
- business hours.
Many believe that this system excludes wages in terms of salary. However, this is notso.
Employees receive monthly official salaries that barely exceed the minimum wage. The bonus part is issued separately for each employee.
The main elements of the earnings system under study are calculated based on many indicators:
- performance for the last reporting period;
- percentage of plan implementation, performance improvement;
- maximum staff employment.
In the case of more than 20 employees, the collective result is taken into account. Depending on personal achievements, it is much easier to collect the premium part separately.
To do this, the head of the department in the report card indicates not only the hours worked by the employee, but also the labor participation rate. Usually it is in the range of 0.5–1.2, but it may have other indicators for different firms.
Scope of application
The tariff-free method of calculating wages may not always be applied, and therefore a number of limitations should be noted:
- for large enterprises, where the calculation of the coefficient for each employee will be difficult;
- for companies where the activities of employees are individualized.
This system is most effective in cases involving workers:
- teams temporarily engaged in general labor activity (shift service);
- companies with several business units;
- small companies.
Views
There arevarious varieties of the tariff-free wage system, in which various forms are used. The choice of the most suitable of them depends on the characteristics of the enterprise.
Option 1. Worker's ratio consists of a constant skill component and a dynamic measure of personal performance. This combined form is useful when people with different experience and professional skills work in the same team.
Option number 2. It is only possible to use the KTU coefficient if there are clear indicators of employee participation in the overall activities of the team.
Option number 3. The coefficient is calculated based on the number of operations performed and their level of complexity. It is most rational to calculate wages using this formula in organizations where labor activity is of an individual-collective nature.
You can also distinguish the following types of tariff-free wage system:
- Collective pay system.
- Commission payments.
- Floating odds system.
Let's consider the main forms of the tariff-free wage system in more detail.
Collective system
In the collective form, the amount of income directly depends on the final indicators of the joint work of all employees. In most organizations, only the successful completion of the activities of the entire unit as a whole is taken into account. Professional achievements of individuals are not taken into account.
Within the framework of the collective system, remuneration is carried out depending on the savings in the fund. The amount is dividedproportionally between all employees, depending on the KTU and the qualification factor.
Is such a system beneficial for ordinary workers? On the one hand, yes. If the team is united, it is set to receive a good salary, it is not difficult to achieve the total expected results.
Another thing is that in one team everyone is responsible only for himself and for his actions. In this case, the effective work of one or two workers will not allow them to receive wages above the average.
Commission
Among the types of tariff-free wage system, let's single out the commission system. Currently, the commission system is very popular. It is found in private companies and among professions such as a broker, re altor, etc.
The system of commission payments differs in that the salary is issued based on the results of the work performed and depends not so much on the quality of the conditions provided, but on the quantity.
The employee receives a commission for the reporting period or after the provision of the result. The commission system is great to motivate employees to increase productivity and improve their performance.
Floating odds
Another type of tariff-free system is a floating form, in which earnings are determined at the end of the reporting period based on the results of the work performed.
This system applies to leadership positions. Rate dependsdirectly from the quality of work performed by subordinate personnel.
Many large companies practice the so-called contractual wages. This is due to the drafting of an employment contract, in which the employer clearly prescribes the salary level, its value and the bonus part.
The contract system can be valid for 1 month, but more often the contract is concluded for up to six months. During this time, the employer has no right to change the terms of payment. It's about wage cuts. But paying additional bonuses or the thirteenth salary is not prohibited.
Application areas
The tariff-free wage system has its own difficulties, so it is used in medium and small enterprises. The users of the system are, first of all, manufacturing enterprises, private agencies when working with individuals, trade organizations.
Sometimes large companies can also use this type of remuneration. This is possible only if the organization is divided into divisions, each of which has its own direct manager.
This system is used quite often in trading. The principle of the trade organization: the more sold, the higher the salary. In trade there is KTU, the coefficient of service, etc.
In large enterprises, it is inappropriate to practice a tariff-free system, since it is impossible to assess the quality of work performed by each employee separately.
Exceptions arebrigades that have been issued a specific work plan for the reporting period. But the working population likes this system, provided that there are no lazy colleagues in the team who want to receive high salaries at the expense of their team.
System Benefits
Let's highlight the main positive aspects of the remuneration system under study:
- This system is interesting for many employers because it allows you to determine the salary on the basis of an already formed pay fund. Initially, the size of the payroll is calculated in the prescribed manner, after which the share of each employee is determined.
- The system touches upon the issues of stimulating and encouraging labor: with the growth of benefits from the entire enterprise, each employee will receive more. This means that there is no need to use and implement an additional incentive payment system, which greatly simplifies the payroll process.
- There are clear benefits for employees too. In the end, products or services also become more expensive, which leads to an increase in the company's profit, which means that the salary of each employee is automatically increased without additional settlement from management.
- Equally important is the fact that ease of calculation is also attractive to the company.
System flaws
Like any economic phenomenon, this system has its drawbacks.
- Each employee musttake a responsible approach to the performance of his part of the work, since errors in his activities can provoke a deterioration in the final results of the work of the entire team and, as a result, a decrease in earnings in relation to all employees at once.
- When using this system, the calculation of coefficients is a certain difficulty for large enterprises due to the large number of employees. In order to eliminate this shortcoming in such enterprises, it is possible to establish coefficients in divisions, and not the entire enterprise, and assign a utility factor to each division throughout the entire production.
- The tariff-free system is dangerous because of the possibility of subjective assessment of the work of employees. If you're just evaluating the effectiveness of a faceless workplace, then not every manager, excluding emotions and personal attachments, can determine how much a particular worker is useful to the enterprise.
- The total amount of earnings for an employee remains an unknown value until they receive their salary, which does not allow the employee to predict their income and possible expenses.
Calculation formula
Most often, the following formula for calculating the tariff-free wage system is applicable to all types:
FROM=SKSKS / FOT, where:
- FROM - earnings of a particular employee;
- KS - share of a certain employee;
- FOT - the total value of the wage fund;
- SCS is the sum of the shares of all employees.
Calculation ruleswages of employees of the company must be recorded in the documentation of the employer and reported to employees without fail. Only then will they be considered valid and legal.
Example
To understand how the system works, it is worth considering a specific example of a tariff-free wage system.
The salary of each of the company's employees depends on the KTU coefficients for these employees, which are defined as follows:
- CEO - 1, 8;
- deputy director – 1, 5;
- sales manager - 1, 4;
- assistant sales manager - 1, 2;
- working – 1.
Suppose that in July 2017 the payroll amounted to 450,000 rubles.
Calculate the total KTU by adding:
OKTU=1, 8 + 1, 5 + 1, 4 + 1, 2 + 1=6, 9.
Salary can be determined by the formula:
FZP /OKTUKTU employee.
We calculate payroll for each employee:
- general director: 450000/6, 91, 8=117391 rubles
- deputy: 450000/6, 91, 5=97826 rubles
- manager: 450000/6, 91, 4=91304 rubles
- assistant manager: 450000/6, 91, 2=78261 rubles
- working: 450000/6, 91=65217 rubles
The above example refers to wages at which a company's fund is formed. Do not forget that official wages must be given to employees under all circumstances.
This can be a certain amount that all employees of the enterprise will receive, regardless of their position.
CV
The tariff-free wage system is a special system that allows you to encourage each employee separately, motivating him and all staff to work productively.
This payroll method can be used in almost any enterprise, regardless of the nature of the company.
The only thing that is required from the employer is to notify newcomers of the current wage system.
If you want to motivate employees, you should not save on bonuses for them. An unexpected cash bonus paid for productive work to an employee is a great motivator for productive work.
The main fundamental point of the application of the system under study is the fact that each employee has his own certain share, depending on his personal contribution, in the total amount of remuneration for all employees. With the growth of personal contribution, the calculation and its share, and hence earnings.
