THE BELL

There are those who read this news before you.
Subscribe to get the latest articles.
Email
Name
Surname
How would you like to read The Bell
No spam

Staff motivation is one of the ways to increase labor productivity. Staff motivation is a key area personnel policy any enterprise. The most effective system of employee motivation is “motivation for results”. The results of the work of employees are determined using KPI (Key Performance Indicators). KPI and staff motivation can significantly improve the efficiency and productivity of the company. Most theorists of motivation systems came to the conclusion that only motivation for the result is a perfect system, because. justifies the payment of remuneration to the business, and gives employees the opportunity to receive and increase income in a clear relationship to the efforts made. AT modern conditions it is difficult to overestimate the role of the human factor in the activities of the organization. Even the most perfect management system will not lead to success if the staff of the organization does not consist of professionals dedicated to their work. In modern conditions, when looking for ways to improve the efficiency of the functioning of the organization, the shift in emphasis occurs towards a specific person.

The highest art of a leader is to thoroughly understand a person, to understand what he loves, because, oddly enough, most people have no idea what kind of activity they are more inclined to and what their special gift is. When a person does what he loves, he is satisfied and happy, and if everyone is calm, joyful and friendly, this creates a special atmosphere in the company. The task of each manager is to create motivation for employees to work more and better, while motivation, related to the mental state of a person, determines the basis of his behavior, forms restrictive barriers to behavior. Motivation is understood as the readiness of people to make efforts to achieve the goals of the organization in the name of satisfying their own individual needs; a set of internal and external influences that encourage a person to activity, set the boundaries and forms of activity and give this activity an orientation focused on achieving certain goals. The concept of "motivation" includes issues of activation, management and implementation of purposeful human behavior. Motivation answers the question: why does this person act this way and not otherwise.

There are the following types of staff motivation:

    Material

    intangible

It is not always correct to talk about the priority of material motivation and its greater effectiveness, compared to non-material ones. Although material motivation has certain advantages. In particular, it is the most universal, since, regardless of their position, employees value monetary incentives and the ability to manage the funds they receive more. In some cases, employees are even ready to exchange any methods of non-material incentives for their cash equivalents. Consider material methods of motivation:

Salary. The most effective way of material motivation is to increase wages, and at the same time, the most basic is to determine the magnitude of the change wages. In order to get real value from an employee, the amount of expected remuneration must be substantial, otherwise it may cause even greater reluctance to perform their duties. Some managers take the path of least resistance and periodically increase the salary of employees by insignificant amounts, however, even a one-time, but significant salary increase is more effective for motivation. Ideally, the decision to raise wages should be taken by the employer on their own initiative, but this, as a rule, does not happen - at least in our conditions. On this basis, the demand for a revision of wages becomes a common method of blackmail by some employees who threaten to leave their jobs. Often this method works, but there can be no talk of a significant increase in wages, in this case. For this reason, after a while, the employee again shows dissatisfaction with his salary, since there is a so-called “addictive income effect”.

Prizes. One of the most common ways of material motivation are quarterly or monthly bonuses, as well as a bonus for long service. The main increase in the percentage of seniority bonus falls on the first years of work in the company, when the employee works effectively for the benefit of the company and tries to maximize his potential. On the other hand, there is a risk that after 2-3 years the employee, for one reason or another, will want to change jobs. The greatest stability is observed among the personnel who have worked for the company for more than 5 years, especially since by this time the bonus for the length of service already amounts to serious amounts.

In Russian companies, it is often practiced to issue "prizes-prizes" - a monetary reward that an employee receives spontaneously for any success. There is an opinion that the effect of surprise should inspire employees even more, but this only introduces confusion, as the employee ceases to understand why in one case he received a bonus, and in the other - not. For this reason, it is better to inform employees about those specific situations when the issuance of bonuses is provided. On the other hand, if the bonus becomes an attribute of monthly income (for example, as for employees of industrial enterprises), then this also poorly motivates them to increase labor efficiency.

There are several basic provisions on premiums that do not affect the specifics of the company and are universal. The manager should be guided by them when introducing methods of economic motivation:

    Bonuses should not be too general and widespread, otherwise they will be perceived simply as part of the normal salary under normal circumstances.

    The bonus should be related to the employee's personal contribution to production, whether it be individual or group work.

    There must be some acceptable method to measure this increase in performance.

    Employees should feel that the bonus comes from additional, not normative, effort.

    Additional efforts of employees stimulated by the bonus should cover the costs of paying these bonuses.

Percent. The following method of material motivation is most common in the field of trade and the provision of various services. This is a percentage of revenue, the essence of which is that the employee's earnings do not have a clearly defined limit, but depend on the professionalism of the employee and his ability to stimulate the sale of goods or services. Some companies that also rely on the qualifications of their employees provide a different way of rewarding professionalism as a material motivation. This encouragement is assigned based on the results of certification, which evaluates the results of the work of the employee and his compliance with the position held.

Bonuses. The number of material incentives includes various bonuses, but their fixed amount often becomes a demotivation. A fixed payment amount does not contribute to the desire to increase the achieved result, since the amount of the monetary reward will not change anyway. Based on this, in order to increase motivation, it is recommended to use an extensive system of payment bonuses. For the top management, an additional remuneration is provided for his contribution to the improvement of general financial or economic indicators, such as cost reduction, increase in overall profit, etc. Bonuses can be not only personal, but also team. A team bonus is a premium reward for a group for achieving certain goals (for example, increasing sales). When accruing bonuses, it should be borne in mind that encouraging one department may be justified in specific cases, but this is not enough to increase overall performance. All structures of the organization, one way or another, are interconnected, and encouraging only one of them can demotivate the other.

Payments for working conditions. Unfavorable working conditions, if it is practically impossible to improve them, must be compensated for the employee, primarily by increasing rest time, additional free food at work, and preventive and therapeutic measures. Shift payments are set for work in the evening and night shifts. Surcharges for the level of employment during the shift are introduced mainly for multi-machine operators, adjusters and repair personnel. Also, surcharges are established when combining professions.

Sale of shares. If you sell part of the company's shares to employees at a very low price, then all employees, even the lowest levels, will have an incentive to work and do everything for its prosperity.

Intracompany benefits. It is also a very effective means of motivation. They mean:

    payment by the company for medical services;

    long-term disability insurance;

    full or partial payment of expenses for the employee's travel to the place of work

    providing its employees with interest-free or low-interest loans;

    granting the right to use the company's transport;

  • club membership;

    advising on legal, financial and other issues;

    food during work.

Present. The practice of motivating employees of firms with the help of gifts has become widespread, but on condition that the gifts correspond to their purpose. Gifts, though inexpensive, can stimulate people. They understand that management does not see them as faceless workers, but notices the loyalty and diligence of everyone. A good incentive would be a gift dedicated to the end of work or the achievement by the team of any goal, on the birthday of the employee. Gifts should not bother and provide for any reciprocal obligations.

Non-material motivation is a system of incentives of an exclusively non-monetary nature. It should be noted that with all the effectiveness and versatility of monetary incentives, the restriction only to material motivation will not bring the desired result. Members of any team are people with different life values ​​and attitudes, besides, it is quite problematic to promote team building by issuing bonuses and bonuses. Moreover, material incentives are calculated based on the results of the work performed and may vary even among people occupying the same position in the hierarchy. All this often causes discontent and does little to create a healthy atmosphere in the team. In many cases, some kind of moral compensation and a balancing factor are simply needed, in the role of which are the methods of non-material incentives.

Species not financial incentives there are many. And the scope of this set is determined only by the desire and competence of the leader. The most commonly used types of non-monetary incentives are listed below:

    Education (trainings, advanced training programs);

    The possibility of self-realization and creativity (the content of the work, allowing you to go beyond);

    Stability and prestige (reputation and fame of the company itself);

    Attractive job title;

    Fixation of achievements (personal attention and encouragement from the authorities);

    Participation in decision-making (feeling that the employee himself is involved in decision-making, for example, polls, voting, etc.);

    Leadership style (atmosphere in the boss's office, style meetings manner of communication between superiors and subordinates

The methods of non-material motivation include the creation of optimal working conditions for employees: the installation of new computer equipment, the creation of comfortable working areas for staff, the improvement of the design of premises, the installation of modern air conditioning and heating systems, etc. To this, one can add the issuance of workwear to all personnel, depending on the work performed, as well as various attributes of the company during events (for example, T-shirts with the company logo). The most important tool of non-material motivation is corporate holidays, especially with the involvement of employees' family members. There is also such a thing as team-building (team building) - team building through joint trips to rest homes or sanatoriums, participation in excursions and general events. Presentations and other actions aimed at demonstrating the success of the company should also be held with the participation of team members to create a sense of ownership in the common cause.

Summing up, we can make an absolutely obvious conclusion about the need to use methods of both material and non-material incentives for the successful operation of any company. The motivation mechanisms that exist today are far from ideal, but they are effective and continue to be actively used in practice. In particular, in order to increase the effectiveness of material motivation, indicators of material incentives should be compared with business goals and incentive systems should be provided not for the implementation of specific tasks, but for the implementation of general plans. In fact, preference is given to material incentives for specific employees and working groups, since it is believed that these methods are easier to manage motivational mechanisms.

However, in the financial structure of a company, bonuses are often the most chaotic and unstructured part of the budget, confusing the company's accounting department. The reason is a poorly written bonus scheme, the lack of clear rules and conditions for awarding bonuses. This situation also confuses employees, who no longer understand the connection between their own performance and encouragement. How to properly organize the bonus budget, what types of bonuses are there and how do they affect employees?

The award is an encouragement of employees for outstanding services to the company with the help of tangible or intangible means.

The bonus is a stimulating factor designed to support the employee, motivating him to work effectively and efficiently. Most often, the bonus refers to cash payments that are made in excess of the basic salary, however, this is not the only way to encourage.

Types of premiums

There are three main types of awards: material, social and moral. The last two, respectively, refer to methods of non-material incentives.

material prize These are direct cash payments. By right the most popular and most effective type of premiums. In the classical scheme, there is a guaranteed salary paid to an employee without taking into account the quality of his work (except for fines, of course), and there is a bonus part accrued in excess of wages when the employee reaches certain indicators.

The bonus system should be flexible and take into account the individual characteristics of employees as much as possible, so that each employee feels that his work is fairly appreciated. It is also necessary to clearly prescribe all the conditions and procedure for calculating bonuses. This will help to avoid wasteful spending and really affect the motivation of employees.

Social premium - this is an extension of the package When looking for a job for an employee, this factor can become decisive in favor of the company offering the most attractive conditions. Medical insurance, travel expenses, company-sponsored training, membership to a fitness club, free meals and much more. Well, if these conditions are provided to choose from, then the employee can choose the necessary services based on their needs.

A big plus of social bonuses is savings for the employer and increasing employee loyalty: the social package is considered by employees not only as a monetary bonus, but also as care and attention from the authorities, which favorably affects the motivation of employees.

Moral Prize - this is the recognition by the management of the merits of the employee, the assessment of his professionalism and the transfer of this knowledge to others. Certificates of honor, recommendations, qualifications, public recognition - in a word, all those regalia and statuses that a person can present as proof of his professionalism. The essence of moral stimulation is informational. This is information about the employee that is transmitted in the social environment and helps the employee achieve the desired position or public recognition.

Moral incentives are the most difficult type of bonuses to implement. In order for this method to work, it is necessary to create a specific atmosphere of openness and objective assessment in the team. Employees must understand why and for what someone receives a diploma, and someone reprimands. The personnel assessment system should be transparent for the employees themselves, allowing them to understand where to strive. Each employee must be convinced that his work will be evaluated objectively and success will not go unnoticed. Indeed, sometimes there are situations in which more resourceful employees find themselves on a pedestal, while true "hard workers" remain in the shadows. It is quite difficult to implement such an assessment system, especially in creative professions. However, if successful, the results will not be long in coming: it is unlikely that the employee will want to leave the company where he is truly appreciated.

In addition to the main types, bonuses can be divided into different categories based on the criteria for consideration. Awards may be considered depending on:

  • categories of bonus personnel (a separate group of workers, the entire company, a bonus for long service, etc.);
  • time of payment (per month, quarter, year);
  • periodicity of payments (one-time, permanent);
  • the size of the premium (fixed, percentage);
  • fund for accrual of payments (from the payroll fund, from the profitable fund);
  • taxation (accounted for, not taken into account).

Awards and motivation

Conventionally, most of the difficulties associated with bonuses can be described in one word - transparency. The lack of transparency in the appointment of bonuses for employees makes them lose the connection between their own activities and the result, then the motivational aspect of bonuses ceases to work. Each employee should be able to calculate their income, understand why and in what cases bonuses are assigned, what performance indicators need to be achieved. Another most common mistake is constant bonuses to all employees. When the bonus is paid to everyone in a row and monthly, it begins to be perceived by employees as part of the salary. And if the bonus part is canceled, the employee feels that he was not paid extra.

Let's formulate several principles of successful bonuses that will help make using bonuses effective.

  1. The bonus payment regulations should be clearly defined and include such indicators as: the circle of persons to be awarded, the grounds for bonuses, the amount of bonuses, payment periods, bonus indicators (which must be achieved), bonus criteria.
  2. Transparency of the bonus scheme for all employees.
  3. Objective personnel assessment system.
  4. The award should not be unexpected and should not be in the form of a prize. When the bonus is a surprise, the employee does not associate it with the results of his activities, which, accordingly, does not affect the quality of his work.
  5. Achievable goals. If the indicators upon reaching which the bonus is issued are too high, this will only reduce the efficiency of employees and their aspirations to the specified height.
  6. Individual approach in the calculation of premiums.
  7. If the bonus is paid to a category of employees without calculating their personal results, then the payments should be the same for employees of the same positions.
  8. The bonus should not be a permanent increase in salary, so that the employee does not begin to perceive it as part of the salary.

And this is far from all the conditions that should be followed in rewarding employees. Omitting details, one can deduce Golden Rule: the formula for calculating bonuses should be accessible and understandable for every ordinary worker. If the formula is not overloaded and easy to calculate, if each employee clearly understands the cases in which the bonus is given and can calculate their bonus income, if the conditions for issuing bonuses are transparent, then the bonus will definitely fulfill its motivational functions and encourage employees to work more efficiently.

Expert opinion

Degtyar O. A.

Lawyer, HR and service management specialist, personnel office work

Incentive payments are not properly regulated in the legislation. Now they are regulated by Article 191. Incentives for work of the Labor Code of the Russian Federation, Article 135. Setting wages, as well as judicial practice. As a rule, for the payment of bonuses, inspectors require a clearly defined and approved in internal documents (PWTR or a separate regulation on bonuses) a system of incentive payments.

When receiving awards, you should proceed from the following:

  • According to Art. 22 of the Labor Code of the Russian Federation, the employer is obliged to provide all employees with equal pay for work of equal value. The employer does not have the right to unilaterally change the employee's remuneration (the system of incentive payments is included in the system of remuneration for work).
  • The process of changing the bonus system should be reflected in internal local acts(all options), and management, in order to avoid disputes with employees, needs to stipulate any change made to them. A change in the bonus system is a change in the prerequisites employment contract, which must be carried out under Art. 72 of the Labor Code of the Russian Federation, i.e. by agreement of the parties in writing, if it is a one-time bonus or a system introduced for the first time at the enterprise. In the event of a change in the bonus system - if these systems are prescribed in local acts (regulations on bonuses and / or PFTR) - it is enough to issue an appropriate order with a notification against signature of employees 2 months before the date of introduction new scheme. Employees are notified of the incentive payment system, and the employer, by order, changes the system to one or that - for certain categories of employees, not personal, but, for example, for all security guards or all managers; or depending on working conditions - on the season, on the category of employees, on personal economic or quantitative indicators.

The employer is not limited in choosing the method and procedure for additional material incentives for the employee, determining the amount of such additional payments and allowances. Bonuses can be set by the employer in any form (in a fixed amount of money, as a percentage of salary, of the amount of work performed). The list of grounds for calculating the bonus is determined by the employer independently.

It is impossible to deprive an employee of a bonus, for example, “de-premium” (reduce wages). One can only “not accrue” bonuses for non-execution of orders, violation of the rules of the PVTR, which are fixed, and one must take into account that one and the same misconduct cannot be “punished” by both a disciplinary measure and an incentive. Therefore, employers should pay attention to the conditions prescribed for the calculation of bonuses, which must be indicated very carefully.

If the bonuses are reduced, and the employee does not agree with this, then the logical outcome of such an employee’s disagreement is dismissal under paragraph 7 of Art. 79 of the Labor Code of the Russian Federation - the employee's refusal to continue working in connection with a change in the terms of the employment contract determined by the parties (part 4 of article 74 of this Code); or the Labor Code of the Russian Federation. Termination of the employment contract at the initiative of the employee (at his own request).

When using materials from the site, the author's indication and an active link to the site are required!

Basic rules for annual bonuses for company employees

ELENA FILATOVA, HR consultant at 4 Service ТМ

The system of material and non-material motivation in different companies is based on several basic principles. Knowing these principles will allow the CFO not only to decide who to reward in their own department, but also to take part in the development of motivation policies for the entire company. This move will ultimately allow for greater control over cash flows.

EVEN IN A SMALL COMPANY, there are opportunities to implement a well-thought-out and multifaceted motivation system. And when the first results of the year are summed up, the following question arises: on what grounds to pay bonuses to personnel. In practice, the system of material and non-material motivation in different companies is based on three main principles. Sometimes all three principles are implemented, sometimes only one, which becomes the cornerstone, and the whole system is built on its basis.

Principle one: motivation according to the needs of the staff

Some employers regularly conduct employee surveys and identify the main incentives for categories and groups of personnel. Often this is a financial reward, a social package (insurance, mobile connection, car, etc.), the possibility of a career or professional growth and other incentives. There is an example, which has already become a textbook, when workers at a plant were motivated by bonuses for overfulfilling the plan. However, the plan was not fulfilled, and the staff turnover was high, that is, the motivation did not work. After a survey and research, it turned out that most of the workers in this workshop are of pre-retirement age, which means that the main thing for them is a “white” salary, which makes it possible to receive an adequate pension in a few years. It turns out that the study of staff expectations and the perception of motivational incentives is appropriate in any company where there is a resource for this and a willingness to change the motivation system based on the results of the survey. A survey for the sake of a survey has no value and is even demotivating, because the staff, based on the results of such a survey, always expects that their opinion will be taken into account and positive changes will occur in the company.

Principle two: motivation as an incentive to achieve the company's goals expressed in performance criteria (KPI)

This is the path of pragmatic companies that formulate goals and motivate staff by the results of achieving them. A company with immature or spontaneous management can be impragmatic, which, in contrast to the Western market, is abundant on the Ukrainian market. Not available in all companies strategic planning, goal setting. It is all the more difficult to translate company goals into specific targets for employees. This path requires serious time, human and financial costs. Therefore, many companies use a simpler way - payment for results based on plan / fact analysis.

Principle Three: Competency Based Motivation
This principle is often used along with motivation by goals, since at the same time as the goals are determined key competencies personnel needed to achieve the goals. The level of development of competencies and the level of remuneration are determined on the basis of personnel assessment. Competences can be different, for example, innovation, teamwork, leadership, planning, etc. The work on compiling competencies is a responsible and costly process (time, human resources), but the result makes it possible to identify clear criteria not only for assessment and motivation, but also in recruitment, in building corporate culture.
Alternative principles
Sometimes meet alternative principles business-specific. They concern, first of all, enterprises that are in dire need of loyal staff. For example, consulting business, highly intellectual spheres, journalism. It will take years for such companies to train an employee, since there is usually an acute shortage of qualified specialists in the labor market. In these cases, the loyalty and length of service of the employee are encouraged, for example, by a bonus for years of service.

If bonuses are awarded fairly, then the benefit will be for the entire organization, and each employee will be able to improve their performance and develop.

Basic rules for the annual bonus
1. If the goals and objectives of the year are met, then bonuses should be paid.
At the end of the year, all employees expect bonuses, bonuses and gifts from the company. In this case, the principles of achieving goals and implementing plans can be used. For calculation, you can use a non-linear scale: a bonus is paid in the amount of 100% when goals are achieved by 90% or more; in the amount of 50% - when goals are achieved by 80%; not paid when goals are achieved by 70% or less. In this case, the bonus can be equal to a fixed amount, for example, 2 or more salaries. For top-level employees, bonuses are higher, and they can be paid in several stages, for example, in December and March, since not all companies can plan to pay large sums at the end of the year.
Some companies simply give bonuses at the end of the year (traditional 13th salary). Each company determines the time of payments based on its own capabilities. Of course, many businesses need to look forward to summing up the results for the year, but most employees rely on gifts and bonuses before the New Year, and not after it. The search for a solution is in the field financial planning and prediction of the result.
If the leader of an organization/department is a pragmatist, a person focused on results, not relationships, and besides, the company has clearly defined goals, then non-material motivation can be implemented by mentioning the achievements of an employee in a corporate newspaper, or it can be completely absent. If the leader and the HR work in creative business, focused on partnerships, the palette of tools will be different - from competitions to Friday beer parties.
2. Clearly communicate the criteria for the payment of bonuses.
If the company plans various payments only to individual employees, then managers should clearly and easily explain the principles by which bonuses are distributed. Otherwise, there is a possibility of resentment and misunderstanding by the staff of these bonuses. In this case, the transparency of accrual and adequate communication is important.
3. The criteria must be relevant to the company, that is, the company must encourage exactly what is important to it at this stage of development.
Recently, complex motivational schemes have been used quite often. For example, the salary of an employee of the financial department consists of a rate and a variable part. The variable part is determined based on performance criteria. For example, there are three main characteristics according to which employees of the financial department will be rewarded: timeliness of work, the amount of fines and tax deductions, fixing all documents in software package. There may also be criteria that are most relevant for the company at the time of development, for example, timely reporting, cost optimization, the introduction of special programs, the accuracy of budget planning, cash flow, interest on loans, and others.

4. Do not forget about the intangible component.

Non-material motivation is used along with the material component. At the same time, the term “non-material” is relative, since funds are also needed to implement this type of motivation. Often the criteria for obtaining non-material motivation is also the achievement of goals or the completion of any project tasks. For example, according to the results of the year, an employee completed a large amount of work, received a bonus for achieving goals, and as a gift - a paid trip with his family to a warm country. Such a combination will make the reward more memorable, provide the employee with family support, and therefore achieve the goal of motivating him to further work.
Sometimes non-material motivation is not associated with specific achievements: its goal is to introduce values ​​into organizations, build a corporate culture, PR and communications (for example, corporate newspaper, which regularly talks about the achievements of employees), creating a friendly and interesting atmosphere (say, titles, nominations, corporate events, etc.), creating conditions for the development of employees (a training center in an organization, a training and development system).

When creating a bonus system, it is worth focusing not on solving a momentary problem of the company, but on taking into account certain trends in the future and on warnings of various kinds of problems.

&.FINANCIST interviewed the heads of several companies in order to find out what bonus systems they use in practice, to determine their strengths and weaknesses.

As soon as the bonus system begins to become more complex, a problem arises

DMITRY POZIGUN, financial director of JSC InterChem:
- There are two ways to motivate employees: either the stick or the carrot. Since we rarely use the stick, the carrot in our case is bonuses to employees. We consider it expedient to combine several options for employee bonuses. The first option is a bonus for the fulfillment or overfulfillment of planned indicators. This is a monthly bonus. If in general the plant fulfills the plan, then employees receive a bonus. As for the percentage of overfulfillment of the plan, such a bonus is paid according to the results of the personal achievements of each employee. The person who determines the amount of such a bonus is the head of the department or laboratory. When evaluating premium volumes, the minimum performance was set. In this case, if the performance is below the minimum, the work is considered ineffective, so the employee is left without a bonus. The remaining bonus volume in this case is distributed among employees in proportion to their total contribution to the implementation of the plan. If this is not possible (everyone has minimal performance), then the bonus is accumulated and can be paid based on the results of the implementation of semi-annual or annual plans. The main thing is that the total amount of the premium is not reduced and cannot be used for other needs.
The second option is a seniority bonus, or the 13th salary. This premium is paid once a year. At our enterprise, it appeared relatively recently, since the need for it arose over time. After the enterprise had existed for more than five years, it became clear that an employee who had worked for quite a long time since the establishment of JSC InterChem deserved a reward for loyalty, which, no doubt, was beneficial to the enterprise. The issue of introducing the 13th salary was discussed for a very long time. She has transformed a little. this moment paid as a seniority bonus. Equally controversial was the question of how much interest must be paid. The amount of the 13th salary is determined by the number of years the employee has worked in the company. There is a certain gradation: 1; 3; 5, 7, 10, 12, 15 years old. An employee who falls into one of the intervals receives, respectively, a quarter of the salary, half, 75%, and so on - an additional payment for each period.
The third option is a bonus for reaching a certain age by a person. At our company, when an employee reaches retirement age (starting at age 55), a certain amount is paid every five years.
For "field" employees there is a completely different bonus system. It is usual: the premium is calculated based on the data on the volume of sales and the percentage of the plan completed.
At our enterprise, the premium is mainly in monetary terms, although under New Year there is also a drawing of valuable prizes. Maximum size the bonus was 1.5-2.5 salaries.
The bonus system that currently exists in JSC InterChem is only 50% operational. The fact is that a person gets used to it over time, and the system ceases to motivate him to new achievements. There are other disadvantages: we average the bonus for the fulfillment of the plan by the overall result at the enterprise. Relatively speaking, a situation may arise when a person who, although he was on vacation or on sick leave for some time, nevertheless formally receives an award. But, in my opinion, the ideal bonus system does not exist. The bonus remains a real motivating force if the system of its payment is constantly improved. The employee must feel that the management of the enterprise is constantly taking care not only to index the salary, but also to increase the bonus. In addition, they change planned indicators, labor productivity is growing, and accordingly, changes are required in approaches to the calculation of bonuses. On average, our system is reviewed once every three years, and new approaches to employee bonuses are introduced. The sources of such innovations are books, the experience of others pharmaceutical companies. But not all of them work. We tried to introduce some latest developments, but as soon as bonus systems began to become more complex, a problem arose. If an employee who is awarded such a bonus cannot figure out for himself what and how much he is paid for, this is a non-working bonus system that is not capable of motivating a person’s work. The simpler the bonus system, the clearer it is to the person who receives this bonus, the better such a system works. Therefore, know-how is good, but not always. And what has been tested over the years really works well.

PRIZE REMAINS OF THE PRESENT MOTIVATIONAL POWER , IF SYSTEM HER PAYMENTS CONSTANTLY IMPROVED

Choosing the principle of bonuses, we tried to avoid the one-factor nature of this process and take a comprehensive approach to this issue
VICTOR FEDOROVSKII, owner of TM "Extreme Style", President of the group of companies "Extreme Style"

The system of employee bonuses in general is a very important management tool. It should be borne in mind that it is developed taking into account the desired result at the output of any company for which qualified personnel motivated to achieve certain goals is the main value. If the priority for the company is the quality of the work performed, then the employees who perform their duties with the highest quality are rewarded. If the priority is to generate creative ideas, then the prizes are received by those who managed to develop the maximum unique offers. In our situation, the formation of incentive payments is aimed at increasing the level and quality of sales. Since the goods of the Extreme Style chain of stores are technological products, and also due to the fact that one of the decisive factors when buying is the quality and literacy of service, we encourage sellers to study in detail all categories of goods, regardless of which department they work in. This knowledge is not easy, so employees who perform better on product knowledge tests and their features receive an additional increase in their wages. It also helps to resolve disciplinary issues.
Creating a certain bonus system in our company, we focused not on solving a momentary problem that had arisen, but on taking into account certain trends in the future and preventing various kinds of problems, more precisely, on preventing them. When choosing the principle of bonuses, we tried to avoid the one-factor nature of this process and take a comprehensive approach to this issue. When introducing a bonus system, several tasks were taken into account at once.
The amount of the premium is calculated taking into account clear functional duties, which are performed by employees of certain departments in our company: for their high-quality implementation. Based on this, the bonus accrual system cannot be the same for all employees. Year-end bonuses are not mandatory for everyone. Bonus payments are received by employees whose results achieve the maximum correspondence to the tasks set without loss of the quality of the work performed. All this must be confirmed by no means by subjective judgments of management at certain levels, but by quantitative indicators.
I believe that an ideal bonus system does not exist, since in this case we are dealing with a special resource - human. Despite the fact that each person has his own personal and professional characteristics, it is very difficult to determine the ideal bonus system based on his individual features. It is important to remember that people, namely personnel, are not goods, equipment, or exhibition space that can be bought.

Employees need to be told what criteria they can be DEPRIVED CERTAIN PAYMENTS , AFTER ALL EVEN MOST RESPONSIBLE PERSONNEL SOMETIMES IT HAS PROPERTY TO RELAX

We must not allow the bonus to turn from a motivational factor into a permanent part of the salary
ANATOLY PODOROGNY, CEO OOO "BogMark-Ukraine"
- Bonuses - one of the factors to stimulate and improve performance. Unlike the salary (and social package), the bonus is not guaranteed; it cannot be allowed to turn from a motivational factor into a permanent part of the salary. To fulfill their role effectively, bonuses must be varied and flexible. The activity of employees, which brought additional profit to the company, should be rewarded. At the same time, the labor organization system itself, the management system should allow the employee to independently choose “where and in what direction to dig”.
As an example, I can give such a case. An employee of the supply planning department successfully completes the sales plan. But after analyzing how the distributor distributes goods among its regional warehouses in dynamics, I found regularly occurring zero balances.
What does a sales person do?

  1. He identifies this problem as a problem holding back sales growth.
  2. Finds ways to influence the distribution of goods by the distributor.
  3. It achieves results - in six months all points are provided with goods.

As a result, the sales volume of the goods by the distributor increases, the company receives additional profit. The employee himself found an additional task, solved the problem, and the company received economical effect. After that (for example, at the end of the year), he was rewarded in the amount of a certain percentage of unplanned sales growth.

Each company must to choose TOOLS AND MOTIVATION SCHEMES, RELYING ON INDUSTRY STANDARDS, MARKET TRENDS LABOR IN BRANCH AND THE VALUES OF THE COMPANY ITSELF, ITS LEADERS
We deliberately created a situation where fixed salaries are quite high and employees do not expect bonuses like manna from heaven
YULIA PLIEVA, Partner, CEO of Apple Consulting

In order to reduce the element of subjectivity, since 2005, twice a year, we have been conducting a survey of company employees, which includes several blocks of questions.
The first block includes questions, the purpose of which is to obtain information about the projects where a person participated, what new knowledge he received as a result, what was interesting for him in these projects. Thus, we systematize the knowledge of the person himself: what he took from the project and what he personally gave from himself. Accordingly, the information is received by the person processing this questionnaire.
The second block of questions contains information about what the person lacked for the successful implementation of the project. There can be a lot of options here: insufficient involvement of the project manager, lack of knowledge in certain area etc. This block of questions gives us information about what a person will have to work on later, what additional training he needs to undergo.
The last block provides information about how a person imagines the development of his career in the future: whether he sees himself within the same practice or in a completely different incarnation. For example, today he is a financial consultant, but he sees himself in the future as a marketing consultant, moreover, in another company. Also in this block there is a question about how a person sees himself after a certain time, which allows us to determine the ambitions of our employees.
These questionnaires are analyzed by the head of the company and the person responsible for the personnel, by jointly processing the answers and discussing the results of such a survey. As a result, we get a fairly clear picture: the level of knowledge and skills acquired by the employee; what did he lack to achieve the goals set in the project; how he sees the development of his career; How satisfied is the level of communication within the company; their current level of income. We also ask employees which of the additional material incentives is important to them. At one time, it was a discovery for me that among the proposed elements of the social package (in particular, medical insurance, subscription to gym) employees of our company preferred an interest-free loan. This suggests that now for people the issue of buying real estate, a car is more relevant. The aforementioned survey gives us an understanding in which areas of material incentives to direct our efforts.
Since we conduct such surveys every six months, it is very interesting to observe the change in the opinion of our employees during this time. In addition, the survey gives us information about the level of communication between individual employees, between departments of the company. Based on the results of the survey, certain conclusions are drawn, decisions are made and improvements are introduced.
I want to note that consultants in our company receive a fairly good fixed salary, which does not depend on whether there is a project at the moment or not. We do not work with freelancers, we focus on the staff, which means we must guarantee the team financial stability. We have deliberately created a situation where fixed salaries are quite high, and employees, unlike a number of other businesses (especially trade), do not expect bonuses like manna from heaven. In addition, there are certain bonuses for the implementation of consulting projects. As a rule, they are paid at the end of the project, if the whole complex of works is completed on time and on time. high level. The last factor is evaluated, firstly, by the perception of the client, and secondly, an internal assessment is applied by the head of the relevant practice with the involvement of the company's management. In this case, the consultant receives a bonus in the amount of 100% of the salary - mainly for a three-month completed project. If the project is longer, this may be a double payment. Project managers receive an additional payment for project management. Practice leaders, in turn, receive a percentage of the profits of "their" practice, which allows them to be interested in the results of their work.
For a year, a consultant can receive from 14 to 16 monthly salaries. I think that it is also necessary to make employees aware of the criteria by which they can be deprived of certain payments, because even the most responsible staff sometimes tends to relax.
Published: Financier Magazine, No. 1, January 2008

Employees work in the company in order to satisfy their personal needs and interests (personal enrichment). The task of the company is to balance the interests of shareholders (the board of directors) with the needs for personal enrichment of employees, directing the interests of employees in a direction that is beneficial for the campaign and keeping them within certain limits determined by the corporate culture.

The interests of individual employees within the company are multidirectional at every moment of time, respectively, being left to themselves, they are an example of Brownian movement. The level of culture and upbringing of each employee determines the degree of uncivilization of the methods used for personal enrichment. In this regard, there are 3 main types of behavior of the company.

  1. Leaving things as they are refers to uncivilized methods of personal enrichment as a necessary evil. In this case, the shareholders and the board of directors provide their own interests “outside” or “before” the project development process, using this process itself as a kind of drive mechanism to ensure their own interests.
  2. Choose the path of active struggle, putting numerous obstacles and barriers to uncivilized enrichment. According to the author's deep conviction, this is the case about which it can be said that the fight against evil makes it stronger and stronger.
  3. Transfer (preferably at an early stage of development of a company or project) individual attempts of uncivilized enrichment into a civilized channel by creating a system of civilized enrichment of employees (bonus system). Moreover, this is the case that they say "further into the forest - more firewood." The later the company starts this work, the more difficult it will be to achieve positive results.

With all the differences in behaviors 1 and 2, it should be noted that both of them clearly lead to a significant decrease in the effectiveness of projects. It should be noted that the “losses” from the introduction of the bonus system (type of behavior 3) are not comparable in scale with the losses from the first two types.

This chapter will not consider the question "Is a motivation system in general and a bonus system in particular necessary?". The author believes that the material presented below will make the answer to this question obvious, transferring it to the plane of choosing the format of the motivation system, determined by the goals of the company and the availability of the necessary resources.

When considering issues related to motivation in development, there are several important prerequisites to keep in mind:

    The employer deals with employees aged 23-25 ​​years and above, that is, with people who have already fully formed as individuals, whom it is almost useless to try to re-educate in a direction convenient for the company. Ultimately, the question is as follows - or the employee for a certain time is effectively integrated into production activities company (by independently making the necessary efforts for this) or the company parted with it. Intermediate options lead to losses in one form or another and, ultimately, to a decrease in the company's efficiency.
    Conclusion. The motivation system should be supplemented by a repressive system that provides for the dismissal of employees who do not provide the required quality of performance of their production duties.

    The absolute majority of employees work in the company in order to solve their personal issues and problems, “along the way” solving the issues and problems of the company within the framework of their job duties. The motivation system is the main and often the only mechanism (for an exception, see the Chapter "Formation of a learning organization"), which allows, on a voluntary and conscious basis, to bring the personal interests of individual employees into resonance with the interests of the company.
    Conclusion. The main task of the motivation system should be to create conditions that guide the actions of employees, determined by their personal motives, for the benefit of the company.

    Any system of motivation has both instantaneous and accumulated (cumulative) effect. The immediate effect can last from a few days to months. The cumulative effect manifests itself over long time intervals, can provide an impact that improves the company's efficiency, orders of magnitude more noticeable than with an instantaneous effect. The cumulative effect is manifested in positive changes in the corporate culture, in the growth of staff awareness in the performance of their duties, mutual support departments of the company in the development of projects.
    Conclusion. When working with the motivation system, it is necessary to create conditions for the manifestation of the cumulative effect of its application. There are only 2 such conditions - the stability of the structure of the motivation system and the invariability of the practice of its application over time.

Note

It is required to pay special attention to the quality of the internal content of the motivation system. Should it contain only positive incentives, or at the same time, along with them, also repressive mechanisms of influence on personnel? The laws of physics say that the combination of "+" and "-" results in "0" and is accompanied by the release of a certain amount of energy in the form of heat, light, sound, etc. Application experience various systems motivation clearly confirms the laws of physics - negative and positive incentives (bonuses / de-bonuses) used within the same motivation system, neutralizing each other's energy, reduce the effectiveness of the motivation system to “0”. At the same time, the activity of employees is transferred from the constructive channel of the decision production tasks for various unproductive activities. The motivation system turns from a unifying and reinforcing factor into a factor of separation and weakening, losing all sense of its application, unless, of course, other tasks were set for the motivation system ... For example, elementary cost savings ...

The answer to the question posed in the previous paragraph is very simple. The motivation system should have a set of only positive incentives. And the more stable and unchanging such a system of motivation, the higher its effectiveness. But! It is impossible to do without negative impacts, since mistakes are always made in the development of projects. Therefore, the system of motivation must be balanced by a repressive system (dismissal, demotion and salary, transfer to another position, etc.). The mixed system of motivation/demotivation, used everywhere, should therefore break up into two diametrically opposed systems - a system of motivation and a repressive system, each of which provides a solution to a strictly defined range of tasks that do not intersect with each other.

When writing this chapter, it was not the task to describe all kinds of motivation that have the potential to increase the efficiency of the company. The employer, in an effort to achieve quick and tangible results from the introduction of motivation, should prefer material motivation to non-material ones, focusing primarily on the bonus system as the most powerful, reliable and predictable motivational mechanism. All other types and methods of motivational influences on employees can be left for in-depth study personnel services companies.

Below are the main principles based on experience and the laws of logic aimed at building an effective corporate bonus system in the development of investment and construction projects:

  1. The bonus system should be transparent, strictly deterministic and built on uniform principles for all employees.
  2. The bonus system should have maximum stability over time.
  3. The bonus system should have a differentiated approach depending on the position and division of the employee, salary, length of service in the company.
  4. The bonus system should depend on the results of project development. The source of bonuses are % deductions from the profits of projects. At the development stage, bonuses are accrued based on the estimated value of the project's profit.
  5. A useful measure is the creation of a company-wide bonus fund with possibly regular informing (at least of key employees of the company) about its size.
  6. The necessary confidence of employees in the bonus system can be formed through partial payments made during the development of the project in relation to certain significant events (GPZU, administrative document, building permit, etc.).
  7. The bonus system should ensure the establishment of closer ties between employees related by their functions, thereby forming informal labor groups from them. It is necessary, encouraging the effective work of each employee, to create a single team interested in the development of both projects and the company as a whole. It is required to form an understanding among employees that the effective work of a department/company depends on the effectiveness of interaction between the company's departments and individual employees.
  8. It is necessary to exclude from the procedures used in the bonus system, mechanisms aimed at de-bonding employees. Summing up and making organizational conclusions should be done only after the payment of bonuses. Offended employees, it doesn’t matter if they were deservedly punished or not, by cutting bonus payments. They, as a rule, fail to prove the justification of the punishments imposed.
  9. It is required to balance the bonus system through the creation of a repressive system that allows sanctions to be applied to employees whose qualifications do not meet the requirements for their position.

Below is a functional diagram of the bonus system based on the use of the formulated 9 principles. It has shown its viability and effectiveness in practical application.

The basis of the presented bonus system is the process of forming interest rates for the calculation of bonuses. From the point of view of the mechanism for forming rates for accruing bonuses, the company's employees are divided into 3 categories:

  1. DG and some of the deputies (heads of production units).
  2. Project managers and construction managers.
  3. All employees of the company with the exception of 1-2 categories.

For categories 1-2, the bonus system is direct - the rates for bonuses are set by the board of directors / shareholder of the company directly in the form fixed interest from the profits of the company on developed projects. At the same time, for category 1, we are talking about all the projects of the company, for category 2, only those projects that are directly managed.

For category 3, the bonus system is indirect - bonus rates are set through the calculation of coefficients labor participation employees (KTU) on the basis of percentages of the profits of projects determined by the board of directors / shareholder of the company, which are used to accrue bonuses to employees.

The value of the KTU of an employee directly depends on the size of the employee's salary (O), job coefficient (Kshould), depending on the position held, and the rate of participation of the unit in the development of projects (Nuch). The most difficult issue in determining Nch is finding a consensus between departments when making expert assessments of the degree of participation of departments in the development of projects. After all, these norms can also be set in a directive way. It is important that the specified norms of participation, being agreed “with the battles”, in the future, when they are used, do not cause any reactions among the “participants in the battles”, being the basis of the bonus system. The final KTU of an employee is calculated by the formula:

The result of the process of formation of interest rates for bonuses is an array of individual interest rates, set directly for 1-2 categories and indirectly for 3 categories.

The accrual and payment of bonuses to employees is carried out in 2 modes: current bonuses and final bonuses.

The current bonus provides for the payment of up to 50% of the project's estimated premium during the entire period of project development. Current premiums are accrued in relation to the estimated value of the project's profit, approved by the investment committee of the company. Current premiums are "tied" to significant events in the development of the project (for example, the issuance of a GPZU, the resolution of the administration regulating the development of the project - 15%, obtaining a building permit - 15%), and also include periodic payments during the construction process (for example , up to 20%). Current premiums are paid on a discounted basis. As the discount rate (Сdisc) used in the calculations, the project discount rate, as well as the interest rate on credit or on own funds, can be used.

The final premium (not less than 50% of the bonus) is accrued and paid after the completion of the project. Before the final premium is calculated, the profit of the project is calculated, which includes the final indicators of revenue and costs (including taxes) of the project. The final premium is equal to 100% of the total premium calculated at the end of the project, minus accrued current premiums.

Accrued bonuses are subject to adjustment depending on the period worked by the employee in the company at different stages of the project.

The implementation of the project may differ markedly in terms of timing and the value of performance indicators from the planned values. What to do? It is necessary to understand the true causes of failure, whether they were internal or external. In the case of internal causes, find out which employees' actions led to these failures. Further, given the fact that the strength of the entire chain is determined by the strength of its weakest link, it is necessary to take organizational measures in order to eliminate the causes of failure. The most likely option is the elimination of a weak link - the dismissal or transfer to another position of employees whose qualifications do not correspond to their official duties.

Below is an example of calculating bonus accruals for company employees. The presented calculation does not reflect bonuses accrued to company executives.

(9) An employee's KTU is defined as the product of (O x Nw x Kshould) divided by the sum of the works (O x Nw x Kshould) for all employees except for company executives, project managers and construction managers
(5) The average salary of an employee for the period of bonus accrual is used (the sum of accrued salaries divided by the length of the period), which allows an adjustment to be made in the calculation, reflecting the length of service of the employee in the ongoing project.
(11-12) Paid upon the issuance of the GPZU, an administrative document that approves the rights to invest and build, and determines the volume indicators of the project.
(13) Paid upon receipt of a building permit.
(14) Paid at the stage of construction and commercial implementation quarterly (or 1 time in 2 quarters).

Note

The principles laid down in the presented bonus system can be extended to the entire wage fund, including the wages of employees. In this case, the salary represents advance payments, which are subsequently deducted from the accrued interest on the profits of projects. Naturally, the percentages deducted from the profits of projects and presented above as an example should be increased, as they will include both wages and bonuses. Extending the principles of the bonus system to the entire wage fund provides an additional increase in the interest of the company's employees in the results of project development.

Certain practical difficulties are caused by the integration of the commercial department into the presented bonus system. There are 2 mutually exclusive options:

  1. Internal sale - the commercial department of the company sells commercial space in the developed projects on its own. In this case, it is advisable to “put” the department (in some cases, employees directly involved in the implementation) on a percentage of the proceeds. Distribution within the department is similar to that described in the bonus system for the company.
  2. External implementation - commercial areas in the developed projects are implemented by the involvement of authorized realtors, the commercial department performs coordinating functions. In this situation, a general approach to the calculation of premiums is applied. The only question is to determine the rate of participation of the unit ( Nuch).

If the commercial implementation of some projects is internal, and the other part is external, then in the first case, the internal bonus system of the commercial department operates, and in the second, the company's bonus system. But in the second case, profits from projects with internal implementation are withdrawn from the base for accruing bonuses to employees of the commercial department.

In project teams formed for large or regional projects, the distribution is carried out according to the same principles that are laid down in the presented bonus system of the company.

What is a reward system? This is a certain tool of motivation, an incentive to do your job well and do more than what is required of you. Many companies have not yet learned how to stimulate their employees and, when developing this or that motivation strategy, they are guided by the primitive principle of “give as little benefit to the employee as possible”. Greed is the quality of leaders, which does not allow, in the end, to achieve maximum profit due to the interest of the team. Inspiration is what allows a person to create and at the same time have fun. So what do we have today? Have you ever conducted an employee satisfaction survey? How often do you consider their wishes? Do you know the true causes of the so-called employee turnover in your company? Are you sure that your motivation system works? And if so, does it allow you to maximize profits?

Leaders often forget that there is a simple truth. In order to get something, you have to give something. In my practice, I had to deal with several systems of financial motivation, but, unfortunately, they were not effective enough.

Choosing a reward system

So, what does it take to make an employee engagement strategy work for your company?
We all know that the bonus system can be annual, quarterly, monthly. The company, of course, is most satisfied with the annual. Why? Let me give you an elementary example. You, with your manager, draw up a plan of tasks that you need to complete in order to receive a certain amount of remuneration. In the case of an HR specialist, this is a recruitment plan. As a result of its implementation, you receive or partially receive, or maybe not receive your bonus. What is the benefit of this company? Primarily, this system motivation allows you to reduce staff turnover, allows the manager to significantly reduce costs, because not all employees remain at their jobs during the year. Someone has been demoted, promoted, and the plan immediately ceases to work. Gives the manager the opportunity to change tasks during the year, i.e. increase the plan, in my case, as a personnel specialist, during the year the list of vacancies increases by 50%, respectively, the amount of the bonus payment lies on the conscience of the manager and depends on his subjective opinion. And in the end, at the end of the year, anything can happen: a crisis, bankruptcy, not fulfilling the general plan, and you can forget about the bonus. Therefore, it is better often, but little, rather than nothing at all.

For employees, the most desired bonus is the one that is paid once a month. For example, salary bonuses for fulfilling a sales plan. Everyone clearly knows how much and for what amount they need to sell in order to earn in excess of wages. Is this a good incentive? Yes, only if the reward for the work done is worth it and if your manager in the motivation system took into account the moment that you can suddenly sell even more than it should be according to the plan. Usually in such cases, experienced managers increase the plan, but, unfortunately, leave the same figure in bonuses, which significantly lowers the general mood of old employees who remember how it was originally. And other bosses go a different way and deliberately set a plan, which, like the stars, cannot be reached. In this case, initiative is out of the question. The only way to motivate employees is the daily, hourly pressure from superiors, which, as a rule, encourages people to change jobs.

And yet, most large organizations use a quarterly bonus system. It allows you to most successfully determine the effectiveness of an employee. It gives time for a person to prove himself, the company, to earn money.

Summing up, you should put everything on the shelves and determine components of the most effective bonus system.

  1. The reality of the plan. It is necessary to take into account all factors: the city, the mentality of people, the number of enterprises, the population, prices, conduct analytics more carefully and, based on this, set tasks. Many companies that operate throughout the country divide regional centers into categories, mainly based on the number of people, but at the same time, without taking into account the specifics of their activities, which is important. So, for each category, a work plan is established, according to which the result is then evaluated.
  2. System transparency. Ask your employees if they clearly understand what they are being paid for? And you will be surprised at the true answer. Most of them believe that the bonus is an integral part of the salary.
  3. The reward for the implementation of the plan should give the employee an incentive to receive it.. Therefore, it is necessary to correlate the percentage of the implementation of the plan with the sum of the bonus. For example, for 80% of completion, the employee receives 50% of wages, for 90% - 80%, etc.
  4. Additional bonuses for employees for overfulfillment of the plan. And of course, in order for your team to strive for more, set a special reward for exceeding the plan once a month, for exceeding two, three, etc. months in a row.
People should feel comfortable and enjoy working for you.

THE BELL

There are those who read this news before you.
Subscribe to get the latest articles.
Email
Name
Surname
How would you like to read The Bell
No spam