Different types of payment system
As we have shown, many factors that affect our organisation pays its workforce about the issues and values that the organisation feels are important. It is import that the message given is appropriate to support the strategic objectives of the organisation might choose. There are many variations in systems of payment; some of the more common types will be considered here.
- Time rates
- Individual payment by results
- Group incentives
- Profit sharing
- Performance-related pay or merit rating
- Non-monetary awards
- Cafetería-style payments or flexible pay
- Total reward
International issues in managing pay
Anyone who is concerned with HR in a multinational organisation will appreciate the added complexities of establishing a fair and equitable payment system which operates successfully across many countries.
Some of the factors that determine payment systems will be the same to determining pay rates in organisations in the UK but these will be issues such as fluctuating currency exchange rates and varying cost of living.
These may also be additional payments relating to the need to provide for security and safety for the workforce and to pay people at a substantially higher rate if they are working in a dangerous area. Issues relating to family, accommodation, schooling, healthcare and regular flights home may also form part of an international payment package.