Employee bonus criteria: how to evaluate, who to reward?

Employee bonuses represent the payment of remuneration, which is incentive incentive in nature and is additionally paid. Salary is an important aspect when looking for employment. An employer often draws attention to his company through a motivation system. Employee bonus criteria can be attributed to the main factors when it comes to additional incentives. The legislation of Russia does not impose strict requirements and does not impose restrictions on the amount of payments. This is done individually, depending on company policy. Each manager has the right to independently determine the criteria for employee bonuses and choose the most profitable motivation structure for the company.

System design and development

As you know, the employer always acts in accordance with the articles of the Labor Code. According to the law, any manager has the right to reward employees who faithfully perform their duties. In most cases, remuneration is calculated in cash. However, in some enterprises, the system of intangible bonuses is actively used, such as issuing letters, honor boards, etc.

Each organization has an SMOT (remuneration motivation system). Additional fees and benefits are included in this structure. The document is created on the basis of internal agreements, including localized acts and collective agreements. The law does not prohibit the procedure for paying incentives in an employment contract.

Bonus criteria for employees of a budget institution are also set internally and may differ from a similar structure. In practice, the most widely used incentive system, consisting of two elements: the salary part and the bonus. This is established by the relevant regulation, which comes into force after the order from the head of the enterprise is issued.

System elements

The choice of the bonus structure is left to the director of the organization. Before you stop the choice on any particular system, you need to make decisions on the elements:

• establish the conditions under which remuneration will be paid;
• define criteria for evaluating employees for bonuses;
• set goals that the company will pursue with the effective implementation of labor.

A motivation system is necessary in order to convince staff of the value and importance of active work. After all, if each employee tries, the result will be an effective team showing excellent results. A well-designed incentive procedure influences labor incentives, career growth, and staff cohesion. Responsible employees who cope with their duties receive additional financial assistance.

There are several types of rewards:

• one-time payment;
• for length of service;
• for a long stay in a particular organization;
• for high results for the planned calendar period.

If we talk about the criteria for motivating employees of a budget institution, then here is a little easier. Promotion is awarded for intensity, high results, as well as for the holidays. The main type of award in such organizations is for length of service.

Payment Decision

To develop a motivation system, a special working group is often created.She decides who, when and for what will receive salary increases. Within the group itself, there is also a distribution of responsibilities. This usually happens as follows:

• general management and control is carried out by managers and their deputies;
• employee evaluation criteria for bonuses are developed by the heads of departments;
• the personnel department is faced with the task of collecting data on remuneration from third-party companies operating in a similar direction;
• economic departments and accounting assess the possibility of payments and their size.

Finished information is displayed in the text of internal documents of the organization. Candidates for a vacant place in any enterprise are usually introduced to the labor motivation system.

Premium Payout Indicators

It is worth noting that rewards are issued without a specific algorithm. However, with this approach, there are many disadvantages. With an organized structure of motivation, it will be clear to the employer and staff in which cases and for what the promotion occurs.

Employee bonus criteria - certain indicators, by which employees receive additional payments. These include:

• fulfillment or overfulfillment of the set sales or service plan;
• compliance by the employee with the requirements of job and labor instructions, the performance of an action strictly according to the regulations;
• saving resources of the enterprise in carrying out activities;
• lack of defective products;
• lack of disciplinary and material penalties for a certain calendar period;
• lack of customer complaints.

Executive Remuneration

It is worth noting that not only ordinary employees, but also department heads, deputy heads and, in fact, the head of the company, are entitled to receive incentives. The remuneration structure is also prescribed in the Regulation and the motivation system. Criteria for rewarding employees of managerial positions can both coincide with the above and differ from them.

The indicators of incentives for managers include, first of all, the effectiveness of the organization as a whole or of specific departments. An important aspect is the amount of work performed for a certain period. To get an increase, it is necessary to prevent marriage at manufacturing enterprises. Subordinates must act in accordance with the job description and labor standards. If the company specializes in transactions, you need to conclude the maximum number of profitable contracts. Of course, the direct duties of the head include the advanced training of employees and their training.

Salary and bonus

As noted above, most companies use a wage system consisting of a salary and a bonus part. The size of the salary is established and prescribed in the employment contract of each employee. As for the bonus criteria for employees of a school, budget institution or any other organization, they are enshrined in the collective agreement on the relevant Regulation. It should be noted that there are no restrictions, indicators can be set absolutely any.

For example, in internal acts one of the conditions is stipulated:

• remuneration is paid in any amount without any indicators every month, quarter, year;
• only employees who have fulfilled certain conditions receive rewards;
• bonuses are paid in addition to the salary if for a certain period there were no disciplinary sanctions and well-grounded complaints.

The “salary plus bonus” system is in demand because of its simplicity. Salary consists of two main parts: salary, which is always paid in a certain amount, and a bonus, the payment indicators of which are set in the relevant Regulation.

The bonus criteria for educational institution employees comply with generally accepted standards. In such organizations all the same internal acts are present, which describe in detail the wage system.

Point system

The second most popular motivation structure after the above. The bonus criteria for employees of the DOE (children's educational institution) are based on this principle. Certain assessment indicators are established and prescribed in advance in the Regulation. When performing each of them points are awarded. When there are enough of them, the employee receives an increase in salary.

It is worth noting that often negative points (-1, -2, etc.) are also added to the system. They are accrued for dishonest attitude to work and failure to meet indicators. To make employees more understandable, special tables are used to make work more efficient.

Consider an example of an internal act where a point system is established. The employee is paid a bonus in the amount of salary, if for a month he scored 30 points. Scoring is as follows:

• fulfillment of the plan - 15 points;
• lack of disciplinary sanctions - 10 points;
• saving resources of the organization - 5 points;
• lack of marriage and substantiated complaints - 5 points.

Here it is clearly demonstrated how the employee can receive his bonus. If the employee fulfilled his plan, was not late for a month and did not allow marriage, he will receive encouragement.

The bonus criteria for DOU employees are reduced to the quality of work performed, activity and achievement of high results. If a substantiated complaint is received, the employee will not receive additional compensation.

Are bonuses recorded in the workbook?

In the vast majority of cases, incentives are not included in the document of a working person. The employer, as a rule, does not have such an obligation. According to Government Decision No. 225 of 04.16.2003, regular bonuses provided by the wage system at the enterprise are not to be entered in the workbook.

However, in the same Decree there is paragraph 24, which states that the incentives provided by law or local acts of the company for certain merits are required to be noted in the main document of the employed person.

It can be concluded that the employer enters data if the incentive is not provided for by the remuneration system in the organization. They also mark the employee in connection with the remuneration paid for merit. This provision does not apply to the bonus criteria for kindergarten employees, since staff receives maximum encouragement for their length of service. In practice, a certain incentive is paid on birthdays and holidays.

Ways to evaluate employees

As already noted, the leader at the end of each month evaluates the employee according to certain criteria. Bonuses to employees of a museum or other budget institution are carried out in accordance with the Regulation on Remuneration.

The more priority characteristics of the employee to be evaluated include integrity and responsibility, the ability to quickly respond to changes, analysis, the ability to resolve conflicts, the desire to acquire new knowledge and skills, discipline, the manifestation of initiative, etc. A new employee, only getting into an organization does not always immediately show its full potential. Often, the best qualities appear after a certain time. If a person meets all the requirements, then we can draw conclusions about the appointment of a monthly or even quarterly bonus.

Recommendations for the correct organization of the system

Bonus criteria for school employees and other organizations are determined for each of the departments.The employer needs to determine the characteristics that he will evaluate when choosing employees for remuneration. Prizes can be both individual and collective. The first are made in cases where it is possible to track the performance of each employee. This takes into account the type of wages, piecework or time-based.

In production, the reason for the promotion is an increase in the volume of production made, or an increase in its quality. An important factor is the decrease in the complexity of the main processes. The head independently decides which employees and for what should be rewarded in cash.

The bonus criteria for employees of a budget institution include activity in the public life of the enterprise and the manifestation of the initiative. Particularly welcome proposals to improve the existing system, which already performs well.

In production workshops, the key role belongs to the quality of the products. The assessment is made by the head by researching supply and demand compared to the previous calendar period. Industrial organizations are actively promoting increased material rewards. In this case, indicators are not so important, the main thing is to establish interaction between the participants.

Bonus criteria based on the results of the work of DOU employees are reduced to three components: active participation in works that are not provided for by job descriptions; in connection with public holidays and retirement. The remuneration is paid to those who have worked in the organization for more than three months.

Employee Bonus Mistakes

The wage system cannot work effectively if there are any punctures and shortcomings. What kind of mistakes do employers make when creating a reward system? Let's consider in more detail:

1. The payment of incentives is not related to the results of work. Here bonuses are provided to all employees of the organization, regardless of the performance of each employee and the enterprise as a whole. There are no performance criteria and methods for their calculation.
2. Bonus as a deterrent to the employee. For example, if the staff does not fulfill the plan, there will be a complete or partial denial of the incentive. This leads to nervous breakdowns of workers and an unhealthy psychological situation in the team.
3. The amount of reward is too small. In some organizations, regardless of employee bonus criteria, the accounting department, for example, receives the least. This is the wrong approach, the amount of remuneration should be at least 20% of the salary.
4. It is not possible to meet the indicators and get paid. Usually in such situations, employees simply do not have motivation, because, despite the efforts made, there will be no return.
5. Explanations of workers are not accepted. As you know, often the failure to meet planned targets is directly related to difficult life circumstances. If the result was unexpectedly bad, the employer must first understand the reasons and listen to the version of employees.
6. Shortcomings in work are not corrected. It is not enough just to give the employee to speak, you need to objectively relate to the matter. The manager should identify the real cause of the failure and develop specific measures to address the gaps.
7. Lack of moral reward. Of course, if you choose one type of motivation, most will focus on the material. But do not underestimate the moral side. Any employee will be pleased if, in addition to the cash payment, the manager says a few kind words.

Conclusion

It is worth noting that even the most reliable and verified system of employee benefits cannot work for a long time without adjustments. The employer should occasionally make certain changes, adapting them to modern realities.After all, the results that seem incredible today will become the norm tomorrow. The manager is required to have a subtle understanding of the situation and timely change of bonus criteria for employees of institutions.

Creating a reward system from scratch, you need to consider the personal characteristics of employees. It should be understood that all people are different. One performs some indicators with ease, but for the other it is an incredible test. The best employees need to be encouraged, but not bent to avoid losing motivation. As for fines, here is at the discretion of each leader individually. Someone actively uses deprimation, and someone does not even want to hear about it. In different situations, fines have different effects. Before making a final decision, the manager needs to carefully study everything in order to make the right choice.