The two method that will be focused on are Wages & Salaries
Wages are given as an hourly rate (e.g. £6 per hour) and employees are normally paid weekly
Advantage: The business only pays the amount of work the employee does. This means there is no wasted money.
Disadvantage: The employee may take longer to complete the task which will cost the business more money
Bonus payments are made if a particular target is achieved.A bonus can be paid to an individual employee or to everyone in the company.
Advantage:It encourages employees to give a good performance as the employee gets paid for their good work.
Disadvantage:Other employes could get a reward for other employees hard work if the reward is given to a group of employees.
Other methods of employment include:
Which is extra pay for working longer than normal hours
Which is quoted anuallly and paid monthly
Which is additional money paid to an employee when an item is sold