What payment system rewards employees for the number of items they produce?

The piece rate payment system is designed to reward employees based on the quantity of items they produce. This system calculates compensation based on the actual output of work rather than the time spent on the job. For example, if an employee produces 100 pieces and the piece rate is set at $2 per piece, then the employee would earn $200 for their work.

This method can motivate employees to increase their productivity, as their earnings rise with the number of items they produce. It creates a direct correlation between effort and reward, encouraging high performance and efficiency.

In contrast, wages typically refer to a fixed amount paid for hours worked, and bonuses are often one-time financial incentives based on performance metrics but are not directly tied to the number of items produced. Commission is a form of compensation often used in sales contexts, rewarding performance based on sales rather than production.