Reward begins early and is a direct incentive to efficiency, but there is not the same urge towards the 100 per cent. line as in the case of System No. 1. Usually there is an extra bonus given, say 5 per cent., to those reaching standard time, and this takes the form of a lump sum, so that the angle of the line of increase is not interfered with.
(c) Reward System No. 3.
Reward in this case begins at 80 per cent. efficiency and all the time saved is paid for.
It is a method suitable for high-class workers and necessitates a very accurate time study. It needs a decided effort to get reward, but once reward begins it increases rapidly. An inaccurate time study means either little or no reward if the inaccuracy results in increasing the difficulty of the job; while if it makes the job easy, then excessive rewards are earned.
There is usually an extra bonus of 10 per cent. when standard time is reached.
The system is suitable for automatic work where there cannot be a great variation in efficiency, and where the operations are to a large extent taken out of the hands of the worker.
This method of payment is now adopted by Mr. Allingham after conference with trade-union officials, as it gives the worker the whole of the time saved.