Definition of Flat Rate Compensation:
* Flat rate compensation involves paying employees a uniform rate for the same type of work, regardless of seniority, performance, or additional factors.
Why Same Rate for Same Work is Correct:
* This system ensures consistency and simplicity in compensation, often applied in standardized roles where tasks are uniform and performance differentiation is minimal.
Eliminating Incorrect Options:
* A. Based on seniority:Seniority-based pay typically involves incremental increases over time.
* B. Based on performance:Flat rate pay is not performance-based.
* D. At an appropriate rate for employment skills:Flat rate pay disregards skill variations.
International HR References:
* ILO Equal Remuneration Convention (No. 100):Advocates for equal pay for equal work, aligning with flat rate principles.