What does the term "piecework" refer to in compensation?

The term "piecework" refers specifically to a compensation method where workers are paid a fixed rate for each unit of output they produce. This system incentivizes productivity, as workers earn more by producing more goods or completing more tasks. By linking pay directly to the amount of work completed, piecework can motivate employees to increase their output and efficiency.

In contrast, the other options reflect different compensation structures. Pay based on sales commissions rewards employees based on their sales performance, while periodic bonuses are additional payments not tied directly to the amount of work done. A flat salary maintains a consistent pay rate regardless of output. Each of these approaches serves different purposes in compensation strategy but does not align with the specific definition of piecework.