The truth about South Africa

[Marq]

Nice input Guys.

[Blurock]

The rationale behind the "Rainbow plan" is that businesses cannot always sustain fixed costs that keep rising. In low season they are forced to put staff on short time or to even retrench. By making salaries a variable cost, there is an incentive for staff to earn more if they can give quality work that generates more sales of their services and products. Often employers are requested to let someone work overtime so that they can earn more money. If he/she was incentivised by manufacturing a quality product or providing a quality service in a given time, they could plan their own time to produce more and also earn more on a regular basis.

Most jobs have a rate per hour. Electricians, engineers, technicians, IT, HR, doctors or any profession has a recommended or agreed rate. If more can be done in an hour, that person may be entitled to some reward for the extra effort. Even my wife applies this principle. Our domestic is paid for a full day, although she finishes her daily chores in half a day. She does a good job and no-one has to check on her or tell her what to do.

The second rationale is that all workers/employees are interdependent as each have a function and role to play in a business. This may be more prevalent in a manufacturing concern where one part of a job has to be completed before another can start. In construction, the foundations have to be dug and the slab done before the walls op up. Then follows the roofing, glazing and other items. This interdependency can be used to create self-motivating teams who can earn more if they are productive. They will then urge on the guys that has to supply them with components to finish their part of the job. By working towards a common goal (NB Goal) they can motivate each other and eliminate the slackers who will be exposed by their co-workers. Once they exceed the goals, there has to be a substantial bonus which would not have to cost the company more, as they would have paid overtime anyway, and with less productivity.

[Dave A]

So seeing as everyone is interdependent, does everyone get an equal share in the profit sharing scheme?
Or are some more equal than others?

[tec0]

So seeing as everyone is interdependent, does everyone get an equal share in the profit sharing scheme?
Or are some more equal than others?

Employees linked to what we/i do gets a good bonus every 3 months and it SHOWS, i cannot be happier with him and he puts in so much extra for that bonus it is frankly scary. He gets 60% on his pay and really business can handle it so why not... He is worth it, it shows in in his work and more importantly it shows in his attitude. Sure he made some mistakes in the beginning but now "we" as a group cannot complain.

He gets treated like i would have liked to be treated when i was at that stage. Respect, loyalty and clear proper communication

[Blurock]

So seeing as everyone is interdependent, does everyone get an equal share in the profit sharing scheme?
Or are some more equal than others?

All employees work on an hourly rate. Obviously the rate for an artisan for IT specialist cannot be the same as for a secretary or cleaner. Depending on achievement to target, the bonus or profit share may be multiples of the basic salary or hourly rate. In this instance, you measure output, not input.