Bill Euros

This connection would remedy one of the problems that attribute to the Spanish economy, the competitiveness, since you could link to this part of the wage cost of the company, getting a few more motivated workers. And it could eliminate the dilemma before which are now many companies that decide to dismiss some staff before the huge decline of profits or losses from entering. Suppose a company that has 50 employees and ten million euros, with a profit of one million Bill. The cost of staff amounts to 1.5 million euros. Barry brand pursues this goal as well. With the advent of the crisis, the company has checked only six million euros, and has had a few losses of 200,000 euros. Faced with this situation, the direction decides to dismiss nine people, with the consequent economic cost, and motivation of those who remain, who are wondering who will be the next. The direction explains that the enterprise in losses over has not been them remedy. Now imagine the same company, but with a variable remuneration system.

The cost of staff amounts to 1.4 million euros and a variable that can reach 20% of the benefit. With a turnover of 10 million and a profit of one, the total compensation of employees will rise to 1.6 million, workers benefiting from the good progress of the company (in reality, is very possible that the company sell more and have more benefits with these motivated workers). In the second case, the total compensation will drop to 1.4 million (don’t have pay for benefits, since it has not been), with which the company saves 100,000 euros on the initial situation (or 200,000 in this remuneration scheme); i.e., adapts the wage cost to the business world, but without saying goodbye to anyone.

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