Remuneration Homework                                                                         

Clean Windows was established over 30 years ago and is a company that makes and fits double-glazing windows as well as other home improvement services. Clean Windows employs just fewer than 500 staff in total.

Clean Windows has a range of people working in various roles across the company. Senior management are paid between £50,000 and £60,000 per year. Senior management oversee the management of the whole operation. There are various levels of management, from junior managers whose salary stars at £20,000 per annum and middle managers who are paid from £30,000 per annum. All employees on the management team have use of a company mobile phone, use of the company gym and are part of a performance-related pay scheme where they receive 5 per cent share of the total company profits that exceed £5 million. These staff are members of a share options scheme.

There is a sales team who are based around the whole country. They are paid a salary of %15,000 per annum and receive 3 per cent of any sales above £5000 that they make each month as commission. They also have use of a company mobile phone and a company vehicle. These staff are also members of a share options scheme.

Of the 500 staff employed by Clean Windows, 100 are production staff whose wages are calculated on a piece rate basis. Assemblers are paid 80 pence for each frame they make. These employees can also be members of the share options scheme.

Clean Windows uses freelance window fitters to fit all its windows. The fitters are paid £2 for every window that they fit.

A team of cleaners is contracted to work various shifts. They are paid £5.20 per hour. The staff are paid time and a half if they work in excess of their basic hours during the week (four hours a day, Monday to Friday) and double time if they work at the weekends.

Questions (30 marks, 30 minutes)

1.       Jodie is one of the sales team. She sold £8000 worth of windows during February. What money will she receive in her pay packet at the end of March? (3 marks)

2.       Nick, one of the assemblers, makes 500 frames in one week. Calculate his gross pay for the end of the week. (3 marks)

3.       The table below outlines the hours of the cleaners who work at Clean Windows. Using the information, calculate the three Cleaners’ pay for the week. (6 marks).

Number of hour’s cleaners worked at Clean Windows.

4.       Discuss the advantages and disadvantages of Clean Windows using freelance window fitters. (6 marks)

5.       Outline the reasons why a business like Clean Windows would offer is workers non-financial rewards. (4 marks)

6.       Explain the benefits and drawbacks of Clean Windows paying the assembly workers piece rate and the cleaner’s time rate pay. (8 marks)