Piecework

Piecework is a compensation system where employees are paid a fixed rate for each unit of output produced or action performed, rather than for the time spent working. This method of payment is often contrasted with time-based wages, such as hourly or salaried pay. Under a piecework system, the more units an employee completes, the more they earn.

Historically, piecework has been common in manufacturing industries, particularly where tasks could be easily quantified and standardized. Examples include assembly lines, garment production, and agricultural harvesting. The appeal of piecework for employers lies in its potential to incentivize productivity and reduce labor costs if output increases significantly. For employees, it offers the possibility of earning more than a standard wage if they are efficient and skilled.

However, piecework can also present challenges. Concerns have been raised about potential negative impacts on worker health and safety, as the pressure to produce more quickly might lead to rushed work or neglecting safety protocols. It can also create a disparity in earnings based on individual speed and ability, potentially leading to unfairness. Some argue that piecework can lead to lower quality work as workers prioritize quantity over craftsmanship. In many modern workplaces, regulations and labor agreements have influenced or limited the prevalence of pure piecework systems.