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How Does "Piece Rate" Compensation Work?
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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