Even though firms and workers can both benefit from piece rates, piece rates are sometimes not implemented because of:

Question

Quizplus · Accepted Answer

Issues of distrust can arise when implementing piece rates because workers may be concerned that their efforts will not be accurately measured or that they will not be paid fairly. Employers may also be concerned about the potential for workers to intentionally or unintentionally slow down production in order to receive higher pay. These trust issues can make employers hesitant to implement piece rates despite the potential benefits.

Even Though Firms and Workers Can Both Benefit from Piece