What's the difference between salary system and contract system?

What's the difference between salary system and contract system? Let's have a look.

The gratuity system refers to the method of collecting gratuities from the property service funds received in advance according to the agreed proportion or amount and paying them to the property management enterprises, and the rest is used for the expenses agreed in the property service contract, and the balance or insufficient part is enjoyed or borne by the owners.

Contract system, that is, the owner pays a fixed property service fee to the property service enterprise, and the profit and loss are enjoyed or borne by the property service enterprise.

Advantages of shrinkage drying:

1, the contract system is relatively simple to implement, which is conducive to the adoption of small property companies;

2. With the limited professional level and energy of the members of the owners' committee, the contract system is implemented simply and easily to avoid the supervision and audit of the accounts of property service enterprises;

3. Because the cost saved by the contract system may become the profit of the property management company, it can stimulate the property service enterprises to innovate management methods and save costs to a certain extent.

Advantages of contract gratuity system:

1, the charging system is more transparent, and the owners can monitor the expenses of the property service enterprises, which further embodies the independent management of the owners;

2. The service expenditure of the realty service enterprise has no direct influence on the profit of the enterprise. With fixed remuneration, enterprises do not need to consider diversification, which is conducive to the specialization of property management;

3. The reward system embodies the "housekeeper" service relationship between the property service enterprise and the owner, and reduces the contradiction between the property service enterprise and the owner in property charges.

The advantage of the reward system lies in financial transparency, and the owner can directly supervise the use of funds. Contract system means that owners don't have to participate in the problem, which saves trouble! Both have their advantages and disadvantages.