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Buy an essay: Business

To begin with I would like specify four types of pay systems that, in my opinion, will attract and retain the best employees. Among them: salary, commission plan, bonus plan and profit sharing.
As a fact, salary – is monetary compensation, which the worker receives in exchange for his labor. Obviously, this type of pay system guarantees to employee that at the end of the month he will receive a paycheck, and will be able to pay bills. As a rule, it is the most common and the most safety way for employees, because regardless of the situation, his/her work will be paid, unlike for example piece work.
It should be noted that commission plan – is a scale that performs how much can earn employee if he/she meet certain performance. As a fact, commission plan allows employee earn as much money as many goods or services he/she have sold. As a rule, some employees earn more money than their managers, only because employee has commission plan and managers – salary.
In my opinion bonus plan – is the most attractive pay systems type. As a rule, it is combined with other type – salary. Obviously, it is widespread in financial sector. Employee, usually after financial year ending receives bonuses – the results of his work. It can be said that very often bonus amount exceeds salary in several times. I think this type is very motivational for employees.
As a rule, profit sharing is given to employees who became business partners. As a business partner, employee may earn significant amount of money, however, it depends on size of a firm and its entire situation. I think the main disadvantage of this type is that not always profit is guaranteed for the company.
To sum it up, I would like to express that every type has its advantages and disadvantages. In my opinion, bonus plan is the most attractive pay systems type.

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