Worker incentives in our country began to be practiced at the beginning of the last century. The main task, the solution of which the innovation was aimed at, was to increase the activity of workers, improve production. However, what to hide: the same goals are pursued by the heads of enterprises today, by assigning various payments, incentives, gifts to staff.
History and present
The forms of employee incentives originally practiced in our country involved the payment in addition to the basic salary for the results of the work process, if they exceeded the established standard. Nowadays, in many enterprises, the system has changed significantly, bonuses are automatically added to the remuneration of all employees of the company. There are also such companies where payments are extremely opaque, the accrual mechanisms are not clear to the staff, so the staff rightly doubts how much adequate remuneration it receives. All this affects the motivation of employees, but at the same time - the result of the work process.
Encouragement of employees, types of incentives, the procedure for their application - these issues should be on the agenda of any company manager, if he wants the prosperity of his company. For the company to be successful, it is necessary not only to establish the production process and ensure an adequate atmosphere, but also to consolidate the incentives. No less important, however, is the topic of punishment. All employees of the company should know for what actions and results they will be entitled to a plus, for which they will have negative experience with administrative measures, in what order and how it will be implemented.
All by the rules
If a person works actively, conscientiously, makes every effort, achieves a significant result, he deserves encouragement. If carefully practicing people and those who carelessly perform their tasks are in an equal position, the motivation to work efficiently disappears.
Currently, at enterprises, types of incentives for employees under the Labor Code are usually paid, namely taking into account the contents of article 129. In the sixth section of this part of the legal document, you can find information on payment in the form of wages - this is the main part of the labor remuneration. Additionally, the law requires the payment of compensation and incentives to stimulate the employee. The main part of the people receive, simply fulfilling the standards laid down by the contract, and additional amounts must be accrued to those who achieve great results.
Goals: multifaceted
The current types of incentives for prosecutors, production personnel, workers in the field of culture, trade and any other areas are aimed at increasing the final wage - it begins to depend directly on the activity of a person. The higher the payment should be, the more important the employee’s contribution to the achievement of the company’s goals. Such payments make a person personally interested in the best results.
Types of encouragement by the employer of the employee are a way of recognizing the performance of staff. Through additional payments, the employer shows that he sees and respects the merits of people. At the same time, the authority of a specific person in the team is growing. It seems reasonable to increase both the authority and income of the best employee. Bonuses are money that a person receives for work achievements.It is reasonable to pay such amounts when reaching a certain date for the anniversary.
It should be remembered: there are bonuses included in the payroll system, as well as lump-sum payments related to one-time successes or life events. In addition, employee incentives can be tied to some milestone in the company. Information about one-time accruals can be entered in the work book - it has a special section reserved for such information. But regular bonus fix in this document is prohibited.
Features of some institutions
The type of incentive for a particular employee is determined not only by the specifics of the workplace, but also by the fact that the enterprise belongs to municipal, budgetary, state, unitary enterprises. So, if the payroll is formed on the basis of federal budget allocations, additional payments are strictly subject to the collective agreement, regulatory documents adopted within the company, as well as individual agreements. All of these documents must clearly comply with legal provisions.
The employee reward system is rather complicated if the institution receives money from the subject budget. The payment of incentive amounts must clearly comply with laws of the federal level, as well as acts adopted by the state authorities of a particular subject, from the budget of which finances are allocated.
When receiving money from the local budget, it is necessary to pay incentives, keeping in mind the rules and laws in force at the federal and regional levels. It is necessary to clearly follow the regulations issued in a particular place by self-governing bodies.
Freedom and Opportunity
Things are much simpler when working in a private company. Here, employee incentive systems are formed taking into account the enterprise budget and the employer's wishes. The owner of the company, the board of directors or another governing body evaluates its own funds, and based on these opportunities, awards are awarded to certain categories of people. At the same time, you need to remember: to assign the payment of amounts should be given the general requirements of the laws. The current TC establishes an obligation to pay reasonably, fairly. Laws prohibit discrimination in determining which of the employees what benefits are due.
In order to avoid doubts as to what types of incentives do not apply to employees at a particular enterprise, which are applicable, what is the frequency of their payment and the amount to be charged, internal documentation should be adopted that regulates the process. The best option is a local regulatory act. It indicates the amount of payments and the procedure for their calculation. When formulating the documentation, it is necessary to demonstrate the project to staff representatives and take into account the opinion of such a commission. The company’s state representative office can go to court to appeal the regulatory act, if one was passed, despite the disagreement of the work team.
Forms and Options
Choosing which one to introduce in the company the type of employee incentives for work, determining the appropriate format of benefits, the set of benefits that the best can count on, it is necessary first of all to focus on their capabilities. The employer has the right to choose those options that fit most well into the budget. Financial opportunities for many are the first and most important rule to be guided by when choosing a reward program within the company.
The law establishes that the promotion is a public recognition of the merits of a particular person. This is a phenomenon reflecting a positive assessment of a person’s work by the employer. It is generally accepted to present material incentives to an employee in a festive atmosphere, as part of an official meeting.True, they do it for a reason: first you need to issue an order, the signature of which is put by the chief executive of the company. Promotion is not only a financial privilege, but also showing honor to a particular person. However, in some cases, incentives are only moral, without material support. It is customary to divide all cases in this way: into those associated with real goods and designed to reflect honor.
Morality and Benefit
In contrast to the material incentive of the employee, moral is aimed at creating a positive impression of the workplace. Influence should be primarily ethical, and the main goal of such an event is the moral satisfaction of a person. Material, in turn, is a monetary reward. It simultaneously brings both income and moral satisfaction.
Moral incentives are practically not used today, and this is no coincidence: letters, honorary books and blackboards, announcements of gratitude in the presence of the whole team in former times were massive. Such incentives did not actually have a base, were not supported by a financial award, therefore, today they do not show any result. There are certain situations when the moral form of employee incentives may be extremely appropriate: if a person has received a certain penalty, they can be removed for success in his work. Another option for a moral reward is the official inclusion of a person in the list of applicants for a superior position in the internal hierarchy.
All by the rules
Following the current legislation, it is possible to put into practice moral forms of employee incentives by issuing letters of appreciation and declaring gratitude. The law recommends representing individual staff representatives for the title of best in their chosen profession. Material options, following the law, are the payment of a premium and a valuable gift.
Presentation for the title of the best in the chosen professional direction is an industry award awarded for specific, especially significant merits. The choice of this type of employee incentive usually involves a preliminary submission by the employer to the officials responsible for this area, a petition confirmed and verified by representatives of the trade union.
Material encouragement of a person who conscientiously and actively works at the enterprise can be expressed by presenting a good gift. The laws do not establish how high the estimated cost of a presentation can be, so the employer determines the appropriate budget for the gift, based on the financial capabilities of the enterprise. Often, material remuneration is paid in the form of a one-time bonus. This format is perhaps the most common in practice.
Options and limitations
The types of employee incentives listed in the legislation are not a complete list of all possible options that are applicable in practice. Certain varieties can be installed in a particular enterprise, based on the characteristics of the work schedule adopted by the company. Some companies practice additional vacation time for employees, paying this period at full rate, while others compensate for staff expenses during vacation trips. The introduction of personal allowances or the issuance of funds for the purchase of housing is practiced - against a refund, but without interest. An order to encourage an employee may contain an indication of the conferment of an honorary title not specified in applicable laws, as well as referral of this person to an additional educational program, conference, internship. You can assign the creation of special working conditions, more comfortable than for everyone else. In a word, a specific list depends only on the inspiration and imagination of the employer, as well as its real capabilities.
If the merits associated with labor activity are especially significant, the order to encourage the employee may include an indication of his presentation as a candidate for a federal award.
Everything is official
So that there is no doubt about the correctness of the promotion, the leader first issues an order. With the complex structure of the enterprise, the basis for such an order may be a memo of the immediate superior of a distinguished person. The branches practice coordination of incentives with the CEO, the head office of the company. The basis for the publication of an internal document may be a memo, a presentation in which the head of a distinguished person indicates what type of award the employee is entitled to based on internal documents and the characteristics of the work process.
The presentation is usually made out arbitrarily. A unified form for this kind of documents has not been developed, although within a particular enterprise they can accept and implement a template for generating documentation. There are generally accepted standards that allow you to correctly compose appeals on the issue of rewards. In order for the document to become the basis for the issuance of the order, it is necessary to indicate in it the full name of the person applying for the award, his date of birth, position in the company, including all the nuances - belonging to the structural unit, duration of employment. It is worth mentioning the level of education. The immediate boss gives an assessment of the person’s labor activity, as well as the motive for issuing the decree, the basis for the document and the type of encouragement recommended in the particular case.
How it works?
Inside the company issue an order or decree signed by the chief executive officer, with the approval of the chief accountant. This document announces a promotion. Further, the contents of the paper should be brought to the attention of interested persons from among the personnel of the enterprise. The draft order should be prepared by the department responsible for personnel, and the visa on it is set by the head of the personnel department. With the material form, it is necessary to coordinate the project with the chief accountant.
The first copy of the new order must be presented to the employee, taking from him a signature confirming familiarization with the date of this event. It is wise to immediately make several copies of the document and transfer one of them to the accounting department, the other to the personnel department for attaching to a personal file. The original order is kept in the file, where all orders related to the dismissal, admission, transfer and other aspects of the execution of personnel are combined. The order is the basis for recording information about the promotion in a person’s personal card.
Only those incentives are indicated in the work book, which are written about in a government decree issued in 2003, issued under number 225. It is declared here: in the Labor Code it is allowed to mention state awards, honorary titles, the basis for which were instructions, decisions in an official manner. You can record information about diplomas, signs, diplomas, titles and other variants of distinction adopted within the company. Other types of incentives can be entered in the workbook only if they satisfy the terms of the collective agreement, the laws of the country, the internal regulations of the company, its charter and disciplinary provisions.
State awards
If the employee is distinguished by special merits to the state, the public, he can be presented to the state award. Such incentives are described in article 191 of the Labor Code, which discloses the nuances of the award from the side of your power and the administrative structures of the state. State awards - this is the highest option of promotion. The president has the right to hand them over. The 89th constitutional article states the president’s ability to reward powers with state awards, and to award top ranks, including military and special ones.To receive state awards, it is necessary to issue a presidential decree published among other laws.
State awards currently include the title of the country's hero, the awarding of a number of orders, medals, awards. They can also give a sign of the laureate. The President has the right to confer an honorary title. For this, a representation in the name of a specialist in the field of culture, science, and the national economy is necessary. The start of the process begins in the labor collective, then the application for approval is sent to the local executive power, and from there to the state power and administration. The deprivation of awards or ranks is possible only in the case of a judicial representation or presidential decree.
Not only pros, but also cons
Speaking about rewards, one should not forget about the possibility of penalties. Unfair, irresponsible, poor work of personnel attracts the attention of the employer no less than high-quality work. Following the current legislation, the head has the right to apply the option of recovery against the background of the employee's misconduct. Absolutely no measures can be taken, the variety of punishments is strictly limited by laws - all possible measures and those misconducts on the basis of which they are applied are listed here.
The laws stipulate the possibility of making comments, reprimanding and dismissal, if there is reason for this. The last option is the most stringent measure. Earlier, a severe reprimand was practiced, but later it was removed from the law. The list of penalties presented in the law is exhaustive, there can be nothing else, which significantly distinguishes it from the list of rewards.
In rare cases, additional measures are allowed, but only if the misconduct falls under a special law. So, if we are talking about a civil servant, he can be warned about the incomplete compliance of the position. Employers cannot invent and apply penalties not stipulated by the rules. At the same time, in reality, fines and deprivation of allowances are not uncommon. They may reprimand with a warning or apply another illegal penalty. The law, of course, stipulates the possibility of financial punishment on the part of the employer, but this is possible only with poor work results, failure to comply with labor standards established by the agreement, and non-compliance with obligations. If the employee is found guilty of this imperfection, payment is established on the basis of what has been done, and not in accordance with stable payment under the contract.