Salary

Also known as: Performance fee, performance fee

Es gibt diverse Formen des Entgelts, die unterschiedliche consequences bzw. Effekte haben. Eine dieser Entlohnungsformen ist der Pensumlohn, der in der Praxis selten Anwendung findet.

Definition / explanation

The full-time wage is a type of payment in which, according to the employment contract, the employee owes the employer not only his labor, but also a certain performance. This means that the total wage differs from the normal case, in which the wage does not depend on the result of the work. The stipend wage is therefore a reversal of the basic principle:

The employee's remuneration depends on the result of his work (= output)

functionality

The employer discusses a service with his employee. This must be provided in a previously agreed period. The employee receives remuneration for this, which is also determined in advance.

The exact amount depends on whether and to what extent the employee performs the service. This means that the remuneration is reduced if the workload is not reached.

An additional consequence is the delayed payout. In contrast, better performance is rewarded with higher compensation and faster payment. In this way, credit can be saved and poorer performance can be offset at another point in time.

Structure and criteria

The workload is made up of two parts: a fixed basic wage and a workload share. For a service provided to 100%, the employee receives the agreed share. Depending on the level of performance within a period, this can be lower or higher. Common criteria for the design are:

  • Produced amount
  • high quality
  • Cost efficiency
  • Way of working

Benefits of part-time wages

Compared to other types of remuneration, the total wage offers many advantages. The employee is clear from the start what performance he has to achieve. The default corresponds to normal performance. That means it is perfectly realistic to perform.

This creates significantly less time pressure and a more pleasant working atmosphere for the employee. He can work more relaxed and is not overwhelmed by constantly increasing demands. In the long term, it is more efficient.

Disadvantages of part-time wages

Due to the fixed remuneration, there is no direct incentive to perform. In addition, it is time-consuming for the employer or the responsible department head to measure the workload. This also makes payroll accounting more difficult.

Another challenge is that the works council has to be involved in the introduction of the full-time wage.

Summary

  • The employee's remuneration depends on the output achieved
  • The stipulation of the stipulated wage corresponds to normal performance
  • Advantage: the service to be provided is clearly defined
  • Disadvantage: no additional performance incentive
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