Examining Job Payment Structures: Hourly, Annual, Performance-Based

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This essay provides an analysis of different job payment structures, focusing on hourly, annual, and performance-based compensation models. It examines the legal aspects of these payment systems, including minimum wage laws and employment contracts. The essay discusses specific job roles such as machine operators, office clerks, customer service representatives, sales representatives, and automation engineers, illustrating how their compensation aligns with the discussed payment methods. Furthermore, it explores the implications of performance-based jobs, their benefits, and challenges in implementation. The conclusion summarizes the variations in payment systems based on job roles, responsibilities, productivity, company strategies, policies, and legal requirements. This essay is available on Desklib, offering valuable insights into job payment systems.
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ESSAY
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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Hourly Job.............................................................................................................................2
Annual Payment.....................................................................................................................4
Performance-based jobs.........................................................................................................4
Conclusion.................................................................................................................................6
Works cited................................................................................................................................7
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Introduction
The purpose of the essay is do demonstrate on the job posting with the different payment
criteria, payroll structure and the laws associated to the job roles. Mainly three categories of jobs
will be discussed in the paper, including the job where the candidates are paid annual salary, the
job where the candidates are paid at hourly rate and are compensated other than salaries or
wages. The essay will focus on the legal requirements and lawsuits that support the job roles
with compensation. The job posting like the consultants, sales representatives will be examined
to evaluate their payment system.
Discussion
Hourly Job
Machine Operator, Manpower, Greenville, SC
What the machine operator will have to produce is a quality product based on the
requirement of the operator. The company will serve the requirements of the clients. Hence, it is
necessary for the operators to produce quality work in order to satisfy the level of the clients
(David, Manning & Smith, 2016). If the client is not satisfied by the work, the company would
lose its relationship with the client and it will do the exact opposite of building relationships for
the company. It pays at $14 per hour.
The law that comes into play in this case is the minimum wage law. Here, the job
provides more than the minimum wage standard of the United States of America. Hence, one can
say that it would not lead to any problem regarding the laws and the government.
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Office Clerk, Ultimate, Chatsworth
The employee will have to perform the duties of arranging the files and making sure that
the administrative duties of the office are not left out. This mainly defines the role of the office
clerk. If there is any trouble regarding the arrangement of work, the duty to fix it lies in the hands
of the clerk. The job also requires the employee to have experience (Meer & West, 2016). This is
a good precedent for particularly this type of job because there are numerous requirements in
office and the responsibilities fall on a few shoulders. It pays at $20 per hour.
The law that governs this is minimum wage law. The whole point of minimum wage is
that the people are not exploited in any forms and their physical and mental resources are not put
into a bad usage.
Customer Service Representative, Ultimate, Chatsworth
The main thing that the employee will be required to do in this case is to handle the
clients. Whatever requirements that the clients possess will need to go through the employee at
the very beginning. In short, the employee will have to be the face of the company for the clients.
In this particular job advertisement, this aspect of the job is not highlighted well enough. The
salary of the person is around $16 per hour.
Minimum wage law is the law that governs this particular case. Anybody who does a
particular job for any organization and is employed full time will need to be paid the minimum
wage. Here, there is no discrepancy regarding this matter (Harasztosi & Lindner, 2019). The
employee is being paid more than the minimum wage of USA.
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Annual Payment
The first job posting, where the annual payment was found is the job role of a sales
representative. An organization is benefitted through the amount the sales representative was
able to sell in the entire financial year. Hence, it does not matter whether the sales representative
works for 5 hours per day of 9 hours per day. The sales representative is paid a significant
percentage of the amount the company has earned by the sales representative. Hence, in the sales
representative job posting, the candidates are paid annual, rather than hourly. The job posting of
a sales consultant was also yearly paid rather than the hourly or compensation base. The salary
of the sales consultant depends on the advice and guides the consultant has provided throughout
a year.
In the position of an automation engineer, the candidate is also paid in annual basis
(Careerbuilder.com, 2020). The employment contract of the job role supports the annual salary.
For three of the posts, salary is AWS (Annual Wage Supplement). The salary is provided in form
of the Annual Wage Supplement due to the employment contracts or the strategies of the
company (Gillan, & Nguyen, 2016).
Performance-based jobs
Extel Consulting, Chennai.
A situation may arise where you know that you need a professional with a pre-mentioned set
of skills and you mail you HR with the details of the jobs. After reviewing what feels like the
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100th resume, you feel that all these candidates presented may have the right skills but may not be
perfectly suitable for the organization. This type of dilemma is often faced by recruiters.
To solve this kind of problem, they come up with a different job description- Performance-
based jobs. A performance-based job focuses on outlining the end goal of the position and the
results expected from the professional. Using this job description they are not judging the
candidate based on the technical skills they have but rather on how they perform while they
execute the initiatives given to them in the past.
In these types of jobs, they provide with financial compensation or reward in contrast to set
salaries. Performance-based pay is based on compensating the employee on the basis of their
individual contribution and not the position itself. Some companies often engage in what we may
say profit sharing where the employees receive a certain percentage of the company's financial
gains.
This type of pay offers loads of benefits to management. If there is a fair and effective
performance review system, the employees will strive to work hard. Also, as a result, low
performers will leave but motivated and qualified performers will still remain.
On the other hand, some companies struggle to implement this system as it is really difficult
to establish performance levels and objectively evaluate employees. Also, the performance
criteria can be vague and inadequate. The employees may also start to blame the management
when they fail to receive the expected wage raise.
GE, Hyderabad, Telangana
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There are several types of job in the market where the wage is decided based on the
performance of the person. There are several different criteria based on which the wages are
designed and regulated. A performance engineer will have to analyze the performance of the
engineers who work as subordinates. If their performance is not up to the mark, then the blame
will go to the performance engineers. That person will have to analyze if the progress of the
engineers working below is up to any standard. The standards will be evaluated and worked upon
based as a team and it will ultimately contribute to the company.
Minimum wage law is the law that governs the wages of the employees, however, in this
particular case, minimum wage law does not contradict the system followed by the company.
This is mainly because the wages paid by the company is higher than the minimum wage rate of
the state.
Conclusion
To conclude, the payment system of wages varies with the job postings. The payment system
of a job posting depends on the roles and responsibilities of the job, the productivity, company
strategy, policy and the laws. For instance, the job post of a machine operator provides hourly
based salary as the wage of the machine operator depends on the hours of operating the machine.
The job of the sales representative supports the salary of annual base, as it depends on the
amount of total capital earned through the sales representative in the entire financial year. There
are several jobs were the candidates are compensated in other way other than salary as the job is
service based.
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Works cited
Automation Engineer Job in Melbourne, FL - Robert Half . (2020). Careerbuilder.com.
Retrieved 13 March 2020, from
https://www.careerbuilder.com/job/J3Q1XQ67R1M3GT3XPJQ?ipath=CRJR7
David, H., Manning, A., & Smith, C. L. (2016). The contribution of the minimum wage to US
wage inequality over three decades: a reassessment. American Economic Journal:
Applied Economics, 8(1), 58-99.
Gillan, S. L., & Nguyen, N. Q. (2016). Incentives, termination payments, and CEO
contracting. Journal of Corporate Finance, 41, 445-465.
Harasztosi, P., & Lindner, A. (2019). Who Pays for the minimum Wage?. American Economic
Review, 109(8), 2693-2727.
Meer, J., & West, J. (2016). Effects of the minimum wage on employment dynamics. Journal of
Human Resources, 51(2), 500-522.
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