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How Does "Piece Rate" Compensation Work?

Paying your crew for labor using the Piece Rate method

Matt Honeycutt avatar
Written by Matt Honeycutt
Updated over a year ago

There are three options for paying your crew members for labor: Hourly, Percentage, and Piece Rate. Both Hourly and Percentage are straightforward. Piece Rate, however, is a more complicated method of paying your crews.

What is Piece Rate Compensation?

If you choose Piece Rate, your crew member will be paid a percentage of your configured 1-man hourly rate for the job. If the 1-man rate for the day of the job is $100, and you configure the crew member to receive a 10% Piece Rate percentage, he would receive $10 per hour.

Consider this example:

Joe's labor settings are Piece Rate and 10%. The job's 1-man hourly rate for the day is $100. The billed time for the job is 5 hours. Joe would receive $50: 10% of $100 times 5 hours.

Enable Piece Rate Compensation

Step 1: Navigate to Settings -> Dispatch -> Crew Members.

Step 2: Select the crew member that you would like to adjust their compensation settings for.

Step 3: Navigate to the compensation tab and locate the line item for Labor.

Step 4: Enable the toggle switch to begin paying compensation for labor.

Note: The toggle switch will turn green once enabled.
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​Step 5: Select Piece Rate from the drop-down menu.


​Step 6: Enter the percentage of the 1-man hourly rate that you want to pay your crew member.

Step 7: Click Save.


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