Some people think that to motivate and encourage employee to work hard is to pay them based on their outcomes, but it’s not always beneficial for the organizations. There is no denial for the importance of the pay but there are several more factors that may affect the performance of an employee.
Quality of products are compromised due to number of goods produced by those employees who get their wages upon number of items they produce, this is most common in textile sector. Workers who get paid upon numbers surpass most of the quality measures which results in wastage as goods are produced but they are defected or not up to the mark, the main goal of employee is to just make more and more. So, organization’s are now hiring employees on monthly wages and not on the target based wage in order to maintain their goods quality and also to reduce wastage.
However, one of the drawback of paying upon the outcomes is that there are such time in which orders are less which means less good produced. Now, employees will be less paid as they were given wages upon number of items manufactured. Back in COVID-19 when there was a halt on trade and manufacturing process was slow due to pandemic, most of the workers lost their jobs and those who were employed were not even getting half of their salaries.
Although, there are many benefits of paying employee on their outcomes but there are numerous disadvantages. From benefits of organization to job security and proper wage of employee, there are the factors that strongly supports the dis agreement of paying employee upon how much they produce.