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Contractor Payments and Piecework
TCS has many Clients who prefer to engage labour through the Agency on a piecework (payment by results) basis. Some dramatic decreases in costs occur when workers are provided with options to earn more if they put in greater effort.
In numerous instances Clients' have worked with TCS to establish appropriate piecework rates that have seen productivity increase, and overheads decrease
In one notable instance 17 contractors being paid on an hourly basis, at one Client site, were reduced in number to 11 after the implementation of a new piecework arrangement
(NB: the team of contractors made the decision to reduce the number of workers - not management!).
The cost reduction to the Client was substantial, and his ability to win other contracts was greatly enhanced. As a result the 11 contractors now enjoy a substantially higher income stream as the level of their payment is determined by the number working. As the new system provides the incentive to the workers to produce, management costs and time are reduced and the site now operates independently of direct management supervision!
Piecework allows clients to calculate an accurate costing for the production/processing of an item. Labour can therefore be treated accurately like any other fixed cost in the production process.
In a few areas it is not possible to "pay by results" and hourly or daily rates are implemented.
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