Experience in changing the bonus system at an industrial enterprise. Point system for personnel incentives

Modern trends are such that the focus of stimulating company employees is shifting from a focus on current performance results to long-term efficiency.

For the incentive mechanism within the framework of the basic salary (which has acquired the functions of bonus incentives, being a variable value), two important elements must be provided:

• - differentiation of salaries taking into account qualitative differences in labor;
• - differentiation of individual pay within a rank or position depending on labor achievements, personal and business qualities based on periodic certification.

In order to stimulate the work of enterprise employees, it is not enough to have a transparent and understandable tariff system of remuneration; it is necessary to develop a system of additional payments and allowances (a conditionally constant part of wages). The main purpose of establishing additional payments and allowances should be to solve the employer’s problems of remunerating employees for specific achievements and extra efforts in the process of work.

In other words, additional payments and allowances are an effective and efficient tool for personalized, precedent-based incentives for employees.

In addition to material interest, employees of MEGIS LLC express wishes for the following types of incentives for work activity: the possibility of advanced training, the availability of additional social guarantees, praise and recognition of professional success, the presence of a bonus system for labor results.

Based on the foregoing, to improve the labor incentive system for employees of MEGIS LLC, it is proposed to carry out the following activities.

Table 15. Summary table of proposed measures to improve labor incentives for company personnel

When implementing the policy of stimulating the work activity of employees, the method of economic stimulation comes first, consisting, on the one hand, of organizing decent and, most importantly, timely payment for specialists, and, on the other hand, providing free time, allowing the employee to realize his needs and interests .

The study and analysis of employees' opinions about the desired structure of the labor motivation system model is reflected in the second chapter.

As part of improving material motivation, it is proposed only to introduce a fixed part of the salary, which contributes to a sense of security among employees

Based on this, the following labor incentive system is proposed for the organization under study (Fig. 7).

Rice. 7. The proposed personnel incentive system for MEGIS LLC, using all forms (material rewards, compensation, non-material incentives, mixed incentives)

Let us consider in detail the proposed activities.

Improving the remuneration system taking into account the labor activity coefficients of employees. MEGIS LLC carries out construction and installation work at various sites. The work is performed by construction workers of various specialties and qualifications, who work in a team of 5-7 people, under the leadership of a foreman or site manager.

Piece-rate or time-based wages, which are awarded to workers at tariff rates for specific work performed and time actually worked. In order to increase the interest of the entire team in the final results of labor and encourage each employee to complete the volume and quantity of work, it is proposed to introduce a tariff-free wage system.

The tariff-free option for organizing wages makes the employee’s earnings completely dependent on the final results of the work of the workforce. This system is recommended for use where:

• - it is possible to accurately take into account these final results;
• - there are conditions for common interest and responsibility for the final results of the work of the work collective (team);
• - members of the work team know each other well enough and fully trust their managers;
• - a relatively small team with a stable composition of workers.

Taking into account all these conditions, this is a tariff-free wage system for small teams working on the construction of low-rise buildings, finishing and renovation of apartments under contracts, where the cost of all stages of work is clearly defined and it is possible to accurately take into account the volume of work performed.

The proposed version of the tariff-free system has the following characteristics:

• - the level of employee remuneration depends entirely on the wage fund accrued based on the collective results of labor;
• - each employee is assigned a constant (relatively constant) coefficient that comprehensively characterizes his qualification level and mainly determines the employee’s labor contribution to the overall results of labor. In this case, data on the previous labor activity of the employee or group of employees classified as this qualification level is taken into account;
• - each employee is assigned a coefficient of labor participation in current performance results, which complements the assessment of his qualification level.

This remuneration system links the amount of remuneration to the final performance indicators of the worker. This creates a real basis for taking into account the qualification level of the employee, his potential capabilities, and, very importantly, the actual labor contribution and performance of the entire team when organizing labor distribution.

The introduction of a tariff-free wage system in the company MEGIS LLC involves the following activities:

• 1. Issuance of an order for the enterprise on preparation for the transition to a new wage model, which sets out the main reasons for the need to transform wages in the company, the essence and advantages of the newly chosen system of incentives for labor activity, the main activities that need to be implemented, indicating the deadlines and those responsible for their implementation; the composition of the commission for carrying out the preparatory work is approved, etc.
• 2. Calculation of the qualification level coefficient for each employee.

With a non-tariff model of wage organization, the qualification level is considered broader than the generally accepted understanding of the qualification category of workers or job category of specialists, managers and employees.

It is advisable to determine the qualification level coefficient based on the wage ratios that actually developed in the period preceding the non-tariff wage system.

The methodological basis of this approach is the provision that the actual level of qualifications of an employee most fully reflects not the rank assigned to him, but the salary he received.

At the same time, it is recommended to exclude random and unsystematic payments from the calculation of average wages, and take into account the following main ones:

• - bonuses for main performance results paid to employees under the current bonus systems;
• - bonuses for working in multiple shifts (if employees systematically work in shifts);
• - additional payments for combining professions, expanding service areas and similar payments;
• - additional payments for increased work intensity;
• - additional payments for leading a team;
• - additional payments for working conditions (in cases where they are not included in tariff rates and prices and are taken into account separately);
• - payment for length of service and work experience.

The experience of construction companies - domestic leaders in the construction of facilities has shown that the basis for the development of construction organizations are collective economic goals, the value of salary-generating economic indicators: the dynamics of income and profit, reducing costs and increasing labor productivity, mastering new labor methods and mastering related professions, reducing the share of consumption energy resources.

The introduction of wage distribution, which depends on reduction factors, will reduce the loss of working time due to absenteeism, and additional leaves with the permission of the administration, downtime, on average, by about 7 days per worker.

Improving the bonus system for personnel for commissioning new facilities. MEGIS LLC carries out its activities under contract agreements. From 26 to 45 contracts are concluded per year for various construction and repair work. The estimated cost of construction contracts is from 1.5 to 12 million rubles. depending on the type of work.

A survey of company employees showed that more than half of employees often do not know what exactly they receive a quarterly bonus for. It is possible to replace the quarterly bonus with a bonus for commissioning of facilities.

The establishment of bonuses for the commissioning of facilities to employees of construction organizations is regulated by the “Industrial Tariff Agreement for Construction and the Construction Materials Industry,” which confirms that the amount of funds for bonuses to employees for the commissioning of facilities will be included in the contract prices.

It is possible to establish payment of bonuses for commissioning a facility on time with proper quality of construction in the amount of 6% to 8% of the cost of construction and installation work.

In accordance with the contract, the specified premium amount will be distributed as follows:

• - 5% - to managers;
• - 10% - to specialists;
• - 85% - main workers.

The bonus for putting the facility into operation belongs to the wage fund. Workers are rewarded for quality, timely completion of construction and installation work.

Payment of the bonus is made from the wage fund, the amount of funds for bonuses is calculated based on the size of the bonus and is not limited to the maximum amount.

Managers, specialists, employees, and key workers are rewarded for exemplary performance of their duties. Bonuses are paid to employees after the commissioning of the facility, subject to the availability of funds for these purposes.

The bonus is calculated on the official salary at the tariff rate, taking into account the personal allowance paid for performing particularly important work, high qualifications, combining positions, increasing the volume of work performed, performing the duties of a temporarily absent person.

The basis for calculating the bonus is the data of accounting and statistical reporting, operational accounting.

Bonuses are awarded for actual time worked.

Bonuses are reduced or not paid in full in accordance with the list of production omissions approved by the director of MEGIS LLC, while the order must specify the reason why the employee is fully or partially deprived of the bonus.

Full or partial deprivation of the bonus is made for the billing period in which violations, omissions in work were committed or a message about them was received.

Those who have worked for a full period of time at the facility and quit before the bonus is paid are entitled to receive a bonus.

For employees who have not worked for a full period of time at the site due to conscription into service in the Armed Forces of the Russian Federation, transfer to another job, admission to educational institutions, retirement, dismissal due to staff reduction and other valid reasons provided for by current legislation, a bonus is paid for actual time worked in the relevant period.

Employees hired on a probationary period and who do not possess professional skills are not paid bonuses during the probationary period.

Disputes arising during the payment of bonuses are resolved in accordance with the procedure established by law.

The bonus for commissioning of objects will increase the interest of workers in delivering good quality construction projects on time.

Improving the system of additional payments and incentive bonuses. In the analytical part of the thesis, a significant staff turnover was revealed and it was revealed that mostly workers who have worked at MEGIS LLC for less than a year leave and 30% of them are not satisfied with the labor incentive system.

MEGIS LLC does not have a system of additional payments and bonuses of an incentive nature for continuous work experience, for work outdoors, for professional excellence.

• - additional payments to compensate for additional labor costs caused by conditions - this is for working in winter conditions outdoors;
• - bonuses that stimulate professional skills and work experience.

It is necessary to establish additional payments for workers working on construction, installation and repair work in the open air in winter conditions.

• Group 1 - Indoor work.
• Group 2 - Work outdoors.
• Group 3 - Work outdoors at height.

Additional payments are established from October to April inclusive. The amount of additional payments is made using the following coefficients.

Table 16. Amounts of additional payments

We will calculate the costs of establishing additional payments for working conditions in the open air for the main workers - 106 people,

working for 5 months in difficult working conditions, the average coefficient will be 1.2.

The average monthly wage is 23 thousand rubles. The amount of costs will be: 106 x 23, x 0.2 x 5 = 2,438.7 thousand rubles. Payments will be made from the payroll fund.

According to economic and sociological studies, labor productivity decreases by 10-15% due to the replacement of an employee. Reducing staff turnover, increasing stability and securing MEGIS workers can be achieved by using monthly bonuses for length of service.

Long-term work experience in the company contributes to the growth of professional skills, work experience and increased labor productivity.

To secure the most qualified part of workers with experience in construction, a bonus for continuous work experience should be introduced, which is paid as a monthly bonus to the official salary and tariff rates for work experience in the following amount.

Table 17. Allowances for length of service

The length of service that gives the right to receive a monthly supplement includes:

• 1. Time of continuous work at MEGIS LLC.
• 2. The length of service does not interrupt, but it does not include time of service in the Armed Forces, illness due to disability, non-work due to staff reduction, or work in exempt elective positions.

A monthly bonus for length of service is calculated based on the tariff, salary for hours worked without taking into account additional payments and allowances, and is paid simultaneously with wages at the expense of the cost of production and work.

The monthly bonus for length of service is taken into account in all cases of calculating average earnings. In cases where the right to assign or change the amount of additional payment for length of service does not arise from the beginning of the month, then the payment or its change is made from the beginning of the next month. The initial assignment of a monthly additional payment for length of service is made on the basis of an order from the manager upon the recommendation of the commission for establishing work experience.

The clarification of continuous work experience and the revision of the amount of additional payment in connection with this is carried out by the personnel department, labor organization, and is documented in a certificate sent to the accounting department. If an employee leaves the company by transfer to another company and at his own request, no additional payment for length of service is made for that month. Employees who have disciplinary sanctions are deprived of additional pay for length of service for the period the penalty is in effect.

Continuous work experience is determined by the commission for establishing work experience. The composition of the commission is approved by order of the director.

The main document for determining continuous work experience, which gives the right to receive a long service bonus, is the work book. Work experience is determined in the manner prescribed by law. Responsibility for timely review of the amount of additional payment to the tariff and salary for length of service rests with the HR department.

This event will reduce turnover and increase staff stability.

To stimulate professional excellence, workers are encouraged to establish bonuses for high professional excellence.

Bonuses are accrued for the actual time worked on a piecework or time-based basis. Premiums are set at 5%, 10%. 15 %.

So, for the 4th category in the amount of 5% the following indicators are used:

• - experience in this profession, the ability to make independent decisions;
• - good and rational organization of work, a positive impact on employees regarding the rational use of working time; compliance with all instructions;
• - fulfillment of established tasks with output not lower than the average level with high-quality performance of work.

For the 5th category in the amount of 10% the following indicators are used:

• - extensive work experience, allowing you to carry out all instructions accurately and in a timely manner;
• - fulfillment of established tasks with output above the average level with high-quality performance of work;
• - readiness for unexpected decisions and new attitudes, rapid mastery of new issues and methods, active cooperation with other employees and mentoring within the workforce;
• - constant performance of several operations not provided for in the tariff and qualification reference book for this profession.

For the 6th category in the amount of 15% the following indicators are used:

• - possession of diverse experience, very good knowledge of special issues only in their work, but not in related areas, the ability to quickly and independently make informed decisions in all necessary cases, create a clear order in the work;
• - avoiding inaction not only in one’s work, but also showing activity in improving the organization of the labor process in a team, section, workshop, fulfilling established tasks with the highest output and excellent quality of work;
• - possessing a high sense of responsibility, active participation in the search and implementation of new progressive solutions on issues of organizing labor and production, improving technological processes;
• - be an example of emotional restraint and correctness, mentoring, creating complete interchangeability in the team.

For violation of labor and production discipline or due to deterioration in performance, as well as when moving to another job, the bonus for high professional skill is canceled.

Allowances for high professional skills are established by a work order for MEGIS LLC based on a memo from the head of the structural unit.

Skilled workers change jobs more often, as they are in demand in the labor market and can easily look for a new company with higher wages.

This measure to stimulate workers will increase wages per employee by an average of 9.1%. The average monthly wage will be 25.4 thousand rubles.

The bonuses are stimulating. The proposed measure is aimed at reducing staff turnover; it is planned that it will be reduced by reducing the dismissal of those working for less than a year, since they will know that their salary will increase as a percentage, even if they work at their workplace without career growth.

The introduction of this measure will encourage construction workers working in difficult outdoor conditions to work on sites and not quit during the winter.

Additional payments for professional skills help to stimulate skilled workers and also reduce the turnover of this category of workers.

Improving non-material motivation of personnel. The analysis of the data presented in the second chapter of this work on the motivational preferences of employees demonstrates that the majority of employees are satisfied with the material reward system, and therefore, in the project to improve the motivation system at the enterprise, special attention should be paid to the management of MEGIS LLC to the non-material incentive system for personnel, since the currently existing system of employee incentives, based on material rewards, does not give the desired result.

This event includes the development of Regulations on non-material motivation at MEGIS LLC and the introduction of a cafeteria of non-material motivation tools. A flexible compensation system (in Russian terminology - a cafeteria system) will allow each employee of MEGIS LLC to choose for himself which of the additional incentive benefits the company will provide him.

The Regulations describe the principles and rules for the distribution of non-material remuneration and the procedure for forming a compensation package in the part consisting of non-material incentives for various categories of employees of MEGIS LLC.

The motivation process is aimed at creating incentives for employees, stimulating loyalty, increasing productivity and increasing job satisfaction for all groups of employees.

By creating certain corporate conditions that will encourage the company's personnel to be adherents of corporate values ​​and share the common values ​​of the company, MEGIS LLC will build a reliable foundation for long-term cooperation with hired personnel.

The creation of a system of non-material incentives also aims to develop and maintain a system of motivation for personnel as a whole. This Regulation is intended to formulate the basic principles, policies, regulations, rules and other formalized documents on non-material motivation of employees of MEGIS LLC.

Based on this Regulation, an action plan for non-material incentives will be created, which involves the involvement and participation of all groups of company employees.

The management of MEGIS LLC will be guided by this Regulation when distributing intangible benefits in addition to material monthly and annual payments based on the results of the financial year. The full version of the Regulations on non-material motivation of MEGIS LLC is presented in Appendix 3 to the thesis.

The goals of creating a system of non-material motivation. The non-material motivation system, the operating principles of which are set out in the Regulations on non-material motivation of MEGIS LLC, was developed to achieve the following goals:

• 1) Achieving the strategic business goals of MEGIS LLC by encouraging employee activities with the help of a variety of attractive incentives for employees;
• 2) Increasing the company’s profit by stimulating the efficient work of the company’s employees, applying a system of benefits and incentives in accordance with their needs;
• 3) Ensuring the stability of the company’s activities by providing employees with social guarantees aimed at increasing the level of loyalty of the team to the company and achieving stable labor results in the long term;
• 4) Formation of an attractive employer brand through a fair proportional distribution of intangible benefits as a supplement to the basic earnings of employees;
• 5) Increasing labor productivity through the use of the maximum set of intangible benefits that bring employee satisfaction with work and stimulate high-quality performance of assigned work duties.

The non-material motivation system involves the introduction of a cafeteria system that addresses additional non-material aspects.

The cafeteria of non-material motivation tools contains a list of non-material incentives that were developed by the company to introduce diversity into the system of non-material incentives for employees and meet the individual needs of, if possible, all categories of employees.

Cafeteria rules.

• 1. The approved list of non-material incentives is applied by the heads of departments and the HR department in addition to the main compensation package.
• 2. When assigning additional non-material benefits from the above list, heads of departments and employees of the personnel management department select from one to several incentives, without exceeding the limit established for each category of positions.
• 3. The nature of incentives, the period of their use and other conditions are assigned by the manager independently, within the allocated number of points for each category of employees.

Table 18. Proposed option for the distribution of points for different positions of MEGIS LLC

The list of intangible motivation tools proposed for implementation in MEGIS LLC is presented in table. 19.

Table 19. List of non-material motivation tools at MEGIS LLC

The proposed cafeteria system will increase the motivation of the staff of MEGIS LLC.

MEGIS LLC needs to create a package of non-material motivation from the following types of non-material incentives reflected in Table 20.

Table 20. Proposed non-financial incentive package for MEGIS LLC

The main means of non-material motivation and stimulation of employees' work listed above are proposed to be consolidated in the Regulations on non-material motivation of employees of MEGIS LLC.

The central place is occupied by the development of an employee remuneration system, the main stages of which are:

• 1. Research and analysis of employees’ opinions about the desired structure of the labor motivation system model.
• 2. Development of a basic model of the motivation system.
• 3. Development of a technical (working) design of the motivation system.
• 4. Experimental implementation.
• 5. Supporting the implementation of the motivation system, adjusting procedures.

Table 21 reflects the duration of the above stages of developing a reward system, as well as the responsible persons.

Table 21. Stages of development of an employee reward system

Thus, new types of labor organization will arise at the enterprise, which will make it possible, with a properly implemented policy of stimulating workers, to ensure high labor efficiency, including labor productivity, job satisfaction, and quality of working life.

The methodology for the practical implementation of non-material incentive measures is given in Table 22.

Table 22. Incentive activities

Need	Incentives to meet needs
1. Information	1) Encourage the development of employees and their desire to improve their educational level by sending them to advanced training courses, trainings, seminars, depending on the type of activity and financial capabilities.
2) Do not interfere with the desire of employees to obtain higher and postgraduate education, observing the current law on education, allocating leave to take exams, etc.
3) Provide employees with professional literature, opportunities to search for information on the Internet, etc.
4) Encourage employees who improve their educational and intellectual level to share their acquired knowledge with colleagues as part of ongoing corporate events.
2. Material wealth	1) Provide the opportunity to earn additional income within the organization through internal part-time work or combining professions, as well as in other forms that do not contradict current legislation (overtime, etc.).
2) Carry out an individual approach to each employee depending on his marital status, and choose, within the framework of the ongoing social policy, the most necessary types of non-monetary material incentives for a given individual.
3) Do not interfere with the employee’s part-time work in other organizations, if such activity does not negatively affect the results of work at the main place of work.
3. Achieving social status	1) Use the organization’s internal PR capabilities to develop the creative and communication abilities of employees (organization website, print media, online forum, etc.).
2) Increase the social significance of the activities of such employees within the organization, using the tools of corporate culture (dissemination of experience, glorification of the effective results of the work of individuals).
3) Represent individual employees for state awards, industry insignia or in-house honorary badges for achievements in work, as well as in connection with special events in life (anniversaries).
4. Marital status	1) Encourage employees who get married and have children to have free time.
2) Find opportunities to provide family workers with housing or increase its area (official housing, departmental apartments, subsidies for rental housing, etc.)
3) Provide places for children of employees in social infrastructure institutions of the enterprise (kindergartens, health summer camps), as well as attach them to departmental medical institutions within the framework of the social insurance system.
5. Vertical or horizontal growth	1) Send employees to various forms of internal and external training, internships in accordance with the needs of the organization and the personal interests of employees. 2) Build a system for planning an employee’s business career in accordance with the results of recruitment selection and current business assessment, identified abilities, etc.
3) Carry out professional rotation of employees if the interests of employees and the needs of the organization coincide.
6. Self-preservation	1) To affirm in the minds of employees corporate values ​​within the framework of organizational culture, which contribute to gaining faith in the inviolability and sustainability of the organization in the current market segment.
2) In case of layoffs of employees, introduce outplacement technologies (soft dismissal) in order to create among employees confidence in management’s care for their subordinates.
3) Provide legal advice to employees on issues not related to professional activities, as well as involve the security service in the event of physical threats against the employee or members of his family.
4) Allocate funds for medical insurance of employees, preventive examinations, and subsidies for treatment.
5) Employees who want to share their professional experience with younger employees within the organization should be appointed mentors, tutors, etc.

Improving the social development of the team. The development of the social environment of the MEGIS LLC company is an integral part of personnel management. According to its purpose, social development management is focused exclusively on people, on creating appropriate working conditions and safety precautions for company employees. The main goals of the development of the social environment are: improving the social structure of personnel, increasing their educational, cultural and technical level, improving psychophysiological, sanitary, hygienic, aesthetic working conditions, labor protection and safety of workers; ensuring social insurance for workers.

A questionnaire survey of employees of the company MEGIS LLC revealed that the need for safe working conditions and social comfort is very important for more than 50% (58.7) of employees. Of these, they are not completely satisfied with working conditions: 36% of workers rate working conditions as not entirely satisfactory, and 22% of workers consider working conditions to be unsatisfactory.

The analysis of the working time fund showed that there are also frequent cases of illness among workers and loss of working time due to industrial injuries and illnesses of workers.

Tasks such as safe and harmless performance of work at individual workplaces and on a construction site, sanitary and hygienic care of workers during the construction of a facility, safe work in winter conditions must be solved and aimed at reducing the physical severity of labor, which underlies the preservation of working capacity , and influence the quality characteristics of labor results.

Table 23 presents an action plan to reduce injuries at MEGIS LLC.

In 2013, the number of illnesses increased from 5 days per person to 14 days per person, of which more than half were injuries received at work.

The most common cases of injury at construction sites of MEGIS LLC are:

• 1. Damage to the skin of the hands when working with cement mortar without gloves;
• 2. Damage to the eyes as a result of violations of safety rules when working with coloring materials;
• 3. Fracture of limbs as a result of workers falling during installation work.

Table 23. Action plan to reduce injuries

To stimulate the work of employees and create a competitive advantage for MEGIS LLC in the labor market, it is proposed to insure all employees against accidents.

Accident insurance programs will help compensate for the costs associated with surgery, treatment, a long recovery period, and financially support the family of the deceased employee.

With the help of accident insurance, the company will be able to fulfill its moral obligations to the employee and his family, while avoiding unexpected and large expenses. Accident insurance programs provide payments for injuries sustained both at work and at home.

The average cost of an annual policy per employee is 700 rubles.

Oi is the final assessment of the performance efficiency for the period of the i-th employee;

Ri - assessment of the performance results of the ith employee;

Ki - assessment of the severity, professionally significant qualities of the i-th employee;

Sk - taking into account the influence of the complexity of the functions performed by the employee (labor complexity coefficient).

The next step is to evaluate the results obtained. MEGIS LLC is a fairly large company with a total number of employees exceeding 200 people, so assessing the results of a business assessment in the traditional sense will take too much time. Modern technical means make it possible to automate both the analysis of assessment results and the personnel assessment itself. Thus, there is a need to develop a software block for personnel assessment. The structure of the program block should allow:

• 1. Assess his business qualities and professional competencies,
• 2. Create job profiles,
• 3. Conduct personnel assessments based on competencies,
• 4. Plan and evaluate the results of personnel activities,
• 5. Conduct assessment, ranking and recording of job requirements,
• 6. Administer (monitor) the assessment process,
• 7. Conduct analysis based on the results of the assessment procedure.

The functionality of the software block is given in Appendix 6.

To develop software, you need to contact an IT company.

The benefits of using this module are obvious:

• 1. Significant reduction in the labor intensity of the assessment process;
• 2. The ability to quickly evaluate a large number of employees, regardless of their location;
• 3. Formation of effective staff motivation (including material);
• 4. The ability to use various assessment procedures, and, if necessary, create combinations of assessment procedures;
• 5. Identifying job satisfaction among employees;
• 6. Ability to generate various kinds of analytical reports.

Based on the results of the Assessment Center, each participant is given developmental feedback to improve personal effectiveness.

Based on the reports, the manager makes a conclusion about the level of efficiency and effectiveness of the employee’s work for a certain time period (six months, a year), and in accordance with this, makes a decision on positive or negative labor incentives and further career advancement of the employee.

The proposed model of business assessment of personnel was implemented in the company MEGIS LLC. The expected results of implementing the business assessment system are shown in Table 24.

Table 24. Results of the implementation of the personnel business assessment system

The methodology for personal assessment of an employee’s performance and professional competencies is implemented through the following activities:

• 1. Preparation for the assessment conversation.
• 2. Filling out service and biographical information.
• 3. Determination of the main job responsibilities of the employee.
• 4. Identification of professional knowledge (qualifications).
• 5. Assessment of professional competencies.
• 6. Defining goals for the next period of activity.
• 7. Identification of the level of job satisfaction.
• 8. Assessing the employee’s loyalty to the company.
• 9. The manager’s conclusion on the compliance of the level of professional competencies and the employee’s performance results.

All proposed activities are components for the development of a comprehensive incentive system aimed at developing the desired labor behavior of employees through the formation of a system of measurable indicators for assessing the performance of structural units and employees.

Thus, assessing the employees of MEGIS LLC according to the competency model will help to coordinate all elements of the personnel management system, provide materials for the development of a comprehensive system for training and development of the company’s personnel, a system of motivation and labor stimulation, and will allow for an objective assessment of their effectiveness. The results of such an assessment will help the management of MEGIS LLC to identify the best employees in the company and develop effective measures to retain them.

Indicators of the effectiveness of company management are high economic indicators, a stable position in the market, competitiveness, stability. These also include specific indicators: employee performance, low staff turnover, staff satisfaction and loyalty, adherence to discipline and absence of conflicts. Unfortunately, a clean salary alone cannot provide this; it also does not have the proper stimulating effect on employees. That is why all kinds of bonus systems have arisen, the main task of which is to motivate employees, to inspire them, officially speaking, to further work achievements. The point system of personnel incentives perfectly meets the above-mentioned goals.

As the name suggests, when using such a system, staff receive grades, or points, for their work. They show the abilities, professional growth of each employee and other qualities: organization, responsibility, hard work, ability to plan working time, work in a team, etc. The employee is awarded a bonus based on the points they earn.

With a point bonus system, a key point should be taken into account: setting tasks, planning work and summing up results are tied to the completion of tasks that can be assigned to an individual employee, a department and the organization as a whole.

The project to develop and implement a new system of incentives and remuneration (its model is shown schematically in the figure) requires not only the participation of specialists from the HR department, but also the support of the company’s management and functional services, and therefore their interest. To successfully complete the project, it is necessary to form a working group that can take into account all the features of the organization’s activities. So, when creating a system, management must take into account the overall strategy, plans, policies of the enterprise, etc. Accordingly, heads of departments formulate specific tasks for departments and employees, requirements for the quality of work and timely execution of internal regulations. The personnel service determines norms, standards and monitors the level of remuneration in its segment of the market economy. It is important that the work related to the job responsibilities is discussed, and not the employees themselves. To ensure the objectivity of the distribution of incentive payments, the company creates a balance commission, the composition of which is elected by a simple majority of votes at a general meeting of the workforce for a period of one year.

Model of a point system for personnel incentives

The points received are recorded in special evaluation forms so that, summing up the results, the commission for the distribution of incentive payments (balance commission) can determine the specific amount of the bonus. Since such tasks as drawing up job descriptions, vacation schedules, training plans, career ladders and/or creating a list of personnel reserves can be one-time, therefore, the names of jobs and evaluation indicators for them are formed as needed. Moreover, any employee of the company has the right to familiarize himself with the assessment of his own professional activities and, if he disagrees, to file an appeal, which makes this remuneration system fair.

Expert opinion

Valery Chemekov,
Candidate of Psychological Sciences, one of the leading experts and practitioners in grading,
personnel assessment and development in Russia and the CIS, professional trainer and coach, author of a number of articles
in personnel periodicals

The author's approach to assessing the contribution of staff and determining the size of bonuses has a right to exist. After all, KPI technologies are well known and widely used, based on objective and, most importantly, measurable criteria: sales volumes, financial indicators, deadlines, etc. We know that such indicators are applicable to the layer of employees who directly influence them - “white collar workers”, top managers. What to do with the assessment of the work of those who are “distant” from the economic and operational processes of the company? Thus, back office workers do not have SMART tasks, and, unlike the work of managers, the contribution of “clerks” (for example, accountants, HR officers, etc.) is difficult to evaluate using objective criteria. But how can we determine the extent to which they perform routine functions? The methodology proposed in the article makes it possible to evaluate the quality of performance of job duties and the amount of labor expended.

Of course, such an assessment is subjective, since it is based on expert opinion, but its objectivity is ensured by the work of an entire team - the balance commission. In addition, the author rightly notes that the success of such technology depends on the involvement of the manager: his participation not only in assessment activities, but also in setting goals and daily monitoring of the employee. Thus, the methodology encourages managers to be interested in the management process and take a more responsible approach to evaluating the work of subordinates. It is also valuable that the employee knows why he was awarded or not awarded points, i.e. receives feedback on his work.

At the same time, the reader would like to see what the mechanism (criteria) for assigning points is, and how the maximum number of points per unit is determined. It is also obvious that not all evaluation criteria have the same time perspective. Thus, planning tasks and projects - “drawing up professional plans”, “drawing up vacation schedules”, “drawing up training plans”, “forming a list of personnel reserves” and “planning career ladders” - can be set not every week or even every month, but for example, quarterly, and then remuneration according to these criteria can also be quarterly.

The author pointed out several objects of assessment, the main one being the degree of fulfillment of job duties, as well as the quantity and quality of work. If we assume that the degree of fulfillment of duties and the amount of labor expended are one and the same thing, and this is what is measured using the methodology, then assessing the quality of labor remains outside its scope. But the criterion of labor quality is very relevant for the workers for whom this tool is intended.

In Art. 135 of the Labor Code of the Russian Federation states: “Payment systems, including the size of tariff rates, salaries (official salaries), additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal conditions, systems of additional payments and incentive allowances and bonus systems are established collective agreements, agreements, local regulations in accordance with labor legislation and other regulatory legal acts containing labor law norms.”

Therefore, this system is described in detail in the corresponding local document (see the appendix for a sample). The Regulations on the points system of bonuses for personnel consists of the following sections:

1. General provisions.
2. The procedure for establishing incentive payments.
3. Procedure for deprivation of incentive payments.
4. Activities of the commission on the distribution of incentive payments.
5. Final provisions.

Evaluation forms for each business process are in tabular form with columns: job title, work title, evaluation criterion, points (planned and actual). Incentive payments are distributed by the balance commission, which compiles a summary table of employee performance at the end of the month. The total points of each employee are calculated, then all points for each business process are summed up. The cost of one point (i.e. the amount of incentive payments for each employee) is determined by dividing the amount of incentive payments of the division by the total number of points for the division (by the number of its employees). It can be clearly represented as a formula:

Incentive payment fund for the personnel department – ​​60,000 rubles.

Number of members of the department: 3 people.

The rating scale is 2-point (for simplicity): 0 – not done, 1 – done without complaints.

The maximum number of points for each position in each department should be equal; in this case it is 14 points.

The head of the personnel department (1) scored 12 points.

HR manager (2) scored 10 points.

HR specialist (3) scored 13 points.

Maximum number of points per department: 14? 3 = 42 points.

As a result, using the above formula, we obtain the amount that constitutes an incentive increase to the employee’s official salary:

Stim. employee (1) = 60,000: 42 ? 12 = 17,143 rub.

Stim. employee (2) = 60,000: 42 ? 10 = 14,286 rub.

Stim. employee (3) = 60,000: 42 ? 13 = 18,571 rub.

Total for the unit (personnel department): RUB 50,000.

Further, these amounts for each employee are indicated in the protocol, which is signed by all members of the balance commission present at the meeting. Payments to employees are made based on the order of the head of the company.

If we compare the scoring system with the KPI’s (Key Performance Indicators) system, which is popular today, the key differences between these systems are as follows:

• in the scoring system, the number of indicators is not limited to several (usually 3–5) key performance indicators;
• the scoring system is based on performance indicators of job duties, and not on abstract KPIs;
• The accrual of points does not depend on employees occupying senior positions or having a large economic or financial impact on the company's performance, since points are awarded not for achieving goals, but for performing functions. Therefore, the results of the back office clerks are not very dependent on the results of the white collar workers who earn the money.

The use of a point system for assessing work performance and motivating staff, despite the complexity and high requirements for the qualifications of employees conducting assessments, when applied correctly, helps to create an atmosphere of fairness in the interaction between the manager and subordinates, stimulates the growth of responsibility and independence, increases employee satisfaction with the work performed and their commitment to your organization and department. By assessing personnel in this way, the manager can increase the efficiency of the enterprise and manage it successfully, because the implementation of this system allows us to move from assessment tools to a personnel management system.

Application

Sample provision on staff incentives

Tatyana Skorobogatova - expert of the magazine "Kadrovik"

• Motivation, Incentive, Remuneration, KPI, Benefits and Compensation

3.2 Improving the system of material incentives for employees of the enterprise

To ensure interest in increasing production volumes and labor productivity, indicators should be used in the bonus system that characterize the fulfillment of the established task in the nomenclature (assortment), fulfillment (exceeding) of established standards (operational, complex) production (time) and work with a smaller number, etc. For workers engaged in servicing the main production, it is advisable to establish bonus indicators that characterize the improvement in the quality of their work, associated with ensuring the uninterrupted and rhythmic operation of machines and equipment of the main production, reducing the costs of their operation and maintenance, increasing the between-repair periods, technical readiness rates, etc.

Taking into account the needs of the market (demand) or the needs of the enterprise when performing an intra-company task, the indicators (conditions) of bonuses should be aimed at maintaining their achieved level or at further improvement (increase). Each bonus indicator must correspond to the established bonus amount. So, apparently, for an increase in production volumes, an increase in labor productivity, profits, a reduction in costs or an increase in the quality of products (works, services), the size of the bonus should be established for each percentage (point) of improvement in the corresponding indicator compared with the achieved, normative or other level.

The intensity of bonus indicators is determined by a comparison (coefficient, ratio) of the achieved level with the level of the previous period established by the task, or the average achieved previously, or based on the level of use of certain resources (labor, material, financial). The intensity of the indicators should influence the size of the bonus - the higher the intensity, the greater the size of the bonus, and vice versa.

In conditions of brigade organization and remuneration, bonuses can be awarded:

in the case of piecework payment - for the piecework earnings of the team (crew);

in the case of time-based work - on the earnings of the team at tariff rates (monthly salaries) for the time actually worked. If a team works with a smaller number than established by the task, then it is recommended to accrue a collective bonus for wages based on the standard, and not the actual number. In this case, workers' bonuses will be higher, which will interest them in working with fewer people. Collective bonuses can be successfully combined with individual ones, for example, for saving energy, fuel, other material resources, increasing the yield of finished products, etc.

To increase work motivation, both material and moral incentives can be used in parallel.

The following should be used as financial incentives at the enterprise:

Increasing the level of additional bonus payments:

Introduction of a system of payment of monthly or quarterly bonuses, determined as a percentage of the cost of products sold - for employees capable of influencing sales volume (top managers, department heads);

Payment of quarterly bonuses for the absence of disruptions in the supply of production and stocking of warehouses with finished products;

One-time payments for participation in the development of the department’s work (proposals for the implementation of new accounting, planning systems, etc.).

Payment of bonuses - annual remunerations based on the performance of the entire department, taking into account changes in sales volume.

To improve the quality of work, systems of fines and cancellation of bonus payments can be used - in order to ensure economic security, compensation for damage caused to the enterprise as a result of theft, marriage, absenteeism.

The following should be used as moral “incentives”:

Labor incentives - providing opportunities for career advancement, sending employees on business trips to other plants, increasing the role of employees in participating in enterprise management.

Providing opportunities for employees who have demonstrated themselves well in their work results, the opportunity for additional training, advanced training, and payment of scholarships to “Excellent Achievers”.

Of course, the motivational mechanism of remuneration plays a large role, but a constant increase in the level of remuneration does not contribute to either maintaining labor activity at the proper level or increasing labor productivity. The use of this method can be useful for achieving short-term increases in labor productivity. Ultimately, a certain overlap or addiction to this type of influence occurs. Unilateral influence on workers through monetary methods alone cannot lead to a lasting increase in labor productivity.

In order to strengthen motivational factors for increasing worker productivity, improving the quality of products, and reducing defects, it is proposed that the enterprise finalize the provision on bonuses for workers.

Table 7 presents claims indicators and sources of information for bonuses or reductions in incentive payments.

Table 7 Claim indicators, their weight and sources of information

Workers are informed about any claims regarding the quality of work in writing or orally.

Bonuses are awarded to workers based on the final assessment of the quality of work.

The bonus is calculated based on the results of work for the month:

Logicality and accessibility of forms and systems of remuneration. The principles and functions of wages create the necessary methodological foundations for organizing wages directly at enterprises. 1.2 Forms of remuneration The most common forms of remuneration in the practice of enterprises are piecework and time-based, which are reflected in the varieties of remuneration systems. All...

The worker had to work 22 days. In fact, the worker was paid a salary of 4,800 rubles. (5280: 22 H 20). 3.2 Approaches to improving the organization of payment and labor incentives for employees of public catering enterprises The current payment systems for labor have a number of disadvantages. The main disadvantage is that wages are poor, and often not at all...

In the ideology or philosophy of the company, which provides for careful treatment of human resources and a high level of requirements for professionalism and ethics in business relations. 1.2 Main types of organization of wages In the conditions of the formation of market relations, enterprises that have received the right to independently resolve issues of organizing wages use various models and approaches for this. ...

Workers, specialists, employees, managers; 7) simplicity of constructing wages for each employee of the enterprise. Market relations have significantly expanded the economic independence of enterprises in the field of organizing wages. Enterprises of any form of ownership have the right to introduce their own factory tariff system, observing one condition - the tariff salary should not be less...

It is hardly a secret that of all forms of motivation, material reward is the most effective. It is unlawful to classify the wage fund as an “expense”; It is more correct to consider personnel costs as investments in business development.

There's nothing more demoralizing
than a small but constant income.
E. Wilson

All companies, regardless of the type of activity and number of employees, face the need to develop a system of material motivation. Why is this happening? Even if a dedicated team of professionals has been assembled and excellent conditions for work and career development have been created, employees may lose interest in work or leave the company... Of course, the reason is not always low pay; there are also personal motives/circumstances. But lack of motivation in such people, as practice shows, is quite common.

As a rule, financial motivation for an employee is understood as additional payments (above the established salary) - various types of bonuses, bonuses, etc., forgetting that wages in themselves are a fairly strong incentive. But only if the company has developed an effective incentive system! For example, many workers are motivated by piecework wages, since this approach initially implies a person’s ability to influence his wages (the more output, the higher the earnings). Of course, the correctness of establishing labor standards and their ranking are important here.

So, let's look at the main forms of material motivation used in domestic companies:

1. Wage. The motivating effect is created not only by its size, but also by regular increases. It is important to take the size of the salary increase very seriously, because if the actual increase is lower than expected, employees will be demotivated. The dissatisfaction of the team will be maximum if the decision to revise salaries is made “selectively”, not at the initiative of management, but at the request/demands of individual employees. If such requests are justified, but are not fulfilled, motivation also decreases.
2. Premium payments. If bonuses (monthly/quarterly) are paid to everyone and are guaranteed, then their stimulating effect is zero. The ineffectiveness of such payments was proven back in Soviet times (primarily due to the “addictive effect”). Nevertheless, many people use them, perhaps due to ignorance of new, more effective incentives.
3. Additional payments and various allowances. Most of them are paid in accordance with legal requirements, but they cannot be used as a “motivator”, since they “by definition” compensate for unfavorable working conditions, and do not stimulate them to work better.
4. Payment of a certain part of income/profit (interest). This type of remuneration is more often used in the trade/services sector. Some companies even completely abandon the flat rate, forming employee earnings solely as a percentage of sales. This approach has a motivating effect, but only if real (feasible) plans are set - otherwise a person simply will not be able to earn money.
5. Bonuses (fixed payments upon fulfillment of the plan/achievement of agreed conditions - cost reduction, technology improvement, increased profitability, etc.). As a rule, the motivational effect of bonuses is much lower, since they are often perceived as an “add-on” to the salary when promoted. One-time bonuses (gifts for a specific occasion, for a specific reason) strengthen the employee’s loyalty to the organization, but do not motivate them to work more efficiently.

Colleagues from European companies are increasingly refusing both individual piecework and time-based forms of remuneration: the basis of the entire system of material incentives is not an assessment of the actual amount of work performed, but the level of qualifications of the employee (the ability to perform not only his functional duties, but also to take part in in solving production problems). For example, workers at Western European enterprises of General Motors receive wages based on their level of qualifications. But, of course, you shouldn’t uncritically copy other people’s experience.

New bonus system

Using the experience of European countries and our own, we decided to develop an effective bonus system at the Ukrspetsmash plant based on the assessment of 1) qualifications and 2) individual labor achievements.

It is important to immediately note that the greater the number of employees in a company, the more difficult it is to make a qualitative ranking of the qualifications of employees and their labor services to the company. First of all, it is necessary to classify their knowledge and experience. For example, work experience (experience) can be: general, in a given company, in a given specialty, in a given position, etc. Next, it is necessary to determine what type of experience is important for us - it will be taken as the basis when determining the amount of material remuneration. In addition, it is necessary to decide whether, when determining remuneration, it is worth taking into account the employee’s level of education and, if taken into account, should the profile of basic education coincide with the profession (type of work performed)? Then you need to determine the “weights” for each of the factors.

We did not tie the level of remuneration of key workers to the economic results of the enterprise as a whole, since we believe that they largely depend on management efficiency. Workers cannot be responsible for the final result of the enterprise, since they perform only the work that was assigned to them, so their responsibility is limited solely to the quantity and quality of their work. If each worker does his job efficiently and in the required quantity, then the overall production plan will be fulfilled.

The main characteristics of our bonus system for workers - the conditions under which the bonus is awarded - are set out in the Regulations on Bonuses. The presence of the latter in the company is mandatory, since only it can explain to each employee the principles of bonus formation. A copy of the Regulations approved by the director of the enterprise must be present at the workplace of each site foreman and department head.

Conditions for accrual and payment of additional remuneration:

1. Main:

• fulfillment and overfulfillment of planned indicators;
• high quality products.

The more defects there are, the higher the cost of production and the longer the production time, so we reward employees for reducing these indicators.

Index "product quality" calculated according to the following criteria:

• delivery of products upon first presentation;
• return of products after inspection by the technical control bureau;
• absence of claims/comments from employees of other production areas;
• no violations of safety regulations.

Fully or partially are deprived bonuses for workers guilty of violating safety requirements, production and technological instructions, as a result of which defective parts and assemblies entered production. They are punished especially harshly - with deprivation of bonuses for six months - if the customer returns the product due to poor quality.

1. The amount of additional remuneration cannot exceed 50% of the employee’s salary. In making this decision, we were guided by the fact that the stimulating effect of reward is not unlimited: starting from a certain level, motivation decreases. Why exactly 50%? As practice shows, rarely does anyone exceed this bar.
2. If employees are brought to administrative or criminal liability during the bonus period, they will be deprived of their remuneration completely. If a person performs his duties well, but at the same time leads an antisocial lifestyle, in our opinion, he should not be encouraged. (This is a controversial opinion, since the results of the enterprise’s activities have little bearing on the personal and social life of employees.) Fortunately, during the operation of the new bonus system, “punitive” measures have never had to be applied.
3. Employees who commit absenteeism (absent from the workplace without a good reason) or who violate the rules of labor discipline are completely or partially deprived of their remuneration. Of course, we are not talking about cases where a person had serious reasons (family, health-related, etc.), about which he promptly warned management.
4. Employees do not receive additional remuneration for the last month of work in case of voluntary dismissal. If an employee quits for good reasons - age, family circumstances, etc., the bonus is paid.
5. For a period of up to one quarter, employees guilty of offenses that led to losses are deprived of the right to additional remuneration:

• provision of false information (key workers are required to provide information about the work done - the quantity and quality of manufactured products);
• concealment of facts of violation of discipline rules, technological standards, and safety rules;
• postscripts, etc.

In order for the conditions of the Bonus Regulation to be met, it is necessary:

1) monitor workers’ compliance with the agreed conditions (this is the responsibility of foremen and site supervisors);
2) timely record all violations and take into account the degree of their severity;
3) approach the assessment objectively.

To evaluate employees, we chose four factors: skill, effort, responsibility and personal qualities. Each factor is deciphered through a number of indicators. Each indicator has a basic “weight” (coefficient). For each indicator, a score is given in points (1 - minimum, 5 - maximum). The higher the priority (importance) of an indicator, the higher its weight (the sum of all weights is equal to one).

Ratings are given in a special form - the “Employee Rating Card” ( Annex 1), which the site foreman fills out at the end of the reporting month for each worker.

Completely deprived of remuneration
Cause: ___________________________________

Total amount: ________ points.
Amount of financial incentives: ________%.

Foreman: ( FULL NAME.) (signature)
Production Director: ( FULL NAME.) (signature)
Accountant: ( FULL NAME.) (signature)

IN Appendix 2 An example of filling out the assessment form is provided.

Explanations for the table

Factor “Skill” - everything is simple here, because the conditions for assessing an employee’s skill are known in advance. Turner III category Ivanov P. A. has a higher technical education (coefficient 0.05, score 4). In this case:

• the “education” coefficient of 0.05 is multiplied by the score of 4 “higher education”, we get 0.2 points;
• the coefficient “experience in the company” of 0.05 is multiplied by the score 2 “experience up to 5 years”, we get 0.1 points.

The site foreman evaluates the following three factors independently (under personal responsibility). To minimize subjectivity, meetings are held periodically on this issue.

In this case:

• no violations were recorded during the month (this employee was never late for work or left early, did not commit absenteeism, did not come to work drunk, did not drink alcohol at work);
• he can hardly be blamed for lack of effort or initiative and for lack of understanding of drawings or technological processes;
• 10% of manufactured parts were defective;
• at the same time, Ivanov P.A. did not respond to comments on safety violations and did not correct them at his workplace.

The final score (sum of points for all factors) is 3.38 = (0.34 + 1.29 + 1.00 + 0.75); since 3.38 > 1.25, respectively, the bonus amount is 33.8% of the salary.

The assessment results are the basis for determining the amount of additional remuneration for workers:

1. If the final score for the month is less than 1.25 points, no additional remuneration is paid. We consider this to be “standard” effort for which a person receives a salary.
2. If the final score for the month is above 1.25 points, for every 0.1 point there is a 1% bonus; thus, the minimum premium is 12.5 and the maximum is 50%.

We understand that the approach we have developed to determining the amount of additional remuneration for an employee has a significant drawback: the size of the bonus depends solely on the subjective opinion of his boss - the site foreman. In rare cases, the correctness of the assessment can be verified - for example, if a senior manager knows the employee being assessed, but to achieve complete objectivity of the assessment - we are unlikely to be able to exclude the influence of the “human factor”. The only way out that we found was to regularly hold conversations with masters, explaining to them the features of our approach to motivation and assessment.

results

We were unable to implement the “Employee Scorecard” as we planned in one month. An experiment using the new bonus system was first carried out at one of the sites. For two months, we carefully monitored the correctness of filling out the “Card”, together with the foreman, we assessed the contribution of each worker and analyzed the results of filling out the forms: why were these particular points given? Do they reflect the final result of a particular person’s work? etc. Often after such a mini-meeting, the master filled out the form differently. In general, the implementation of the new bonus system took seven months - a month for each site of the main production. Gradually we achieved full compliance with the requirements. I think the result was worth the effort:

1. The quality of work has noticeably increased: the absence of defects is a priority for us, so this indicator has the greatest weight in the bonus structure. The number of marriages has decreased by almost 60% compared to the same periods of the previous two years. This is important for our company; In other organizations, the priorities may be different (for example, quality customer service).
2. The organization of work has improved: now workers pay more attention to the rational use of working time, because their bonus depends on this.

Although in general the results of the implementation of the new bonus system were assessed by management as positive, it is difficult to call it ideal. It has a number of shortcomings; some motivators should be improved or replaced with others.

Perhaps there is no ideal solution at all, and all successful ones are suitable only for those companies for which they are developed. For example, the motivation system developed in Japan is valued all over the world. If in Western countries the basis of motivation is material reward and the opportunity to earn additional income, then in Eastern countries the main attention is paid to job security, recognition of the team, and fulfilling one’s duty to colleagues (a sense of responsibility).

Japanese companies still practice a lifetime employment system; it developed at the end of the twentieth century, when large enterprises began to be created on the basis of small production workshops. Job security gives the employee confidence in the future. Upon reaching retirement age, the company pays him severance pay; even in the event of unforeseen difficulties, the person will not be thrown out onto the street. For ordinary employees, protection in the face of life's adversities is the most important motivating factor. Of course, lifetime employment is typical only for large companies - in small and medium-sized businesses, staff mobility (on average) is much higher. And the very idea of ​​a long-term relationship between an employee and an organization reflects the specifics of the religious views of the Japanese (Shintoism) and the culture of this society (paternalism). Therefore, old traditions are preserved despite all changes in the economy and society.

Types and forms of motivation are constantly changing and improving; The main thing is not to be afraid to experiment.

Article provided to our portal
editorial staff of the magazine

1. GENERAL PROVISIONS

1.1. Purpose

1.1.1. The “Regulations on Bonuses” (hereinafter referred to as the Regulations) is intended to implement a unified coordinated policy in matters of bonus payments to employees of ZZZ OJSC and to ensure a close connection between bonus remuneration and labor results achieved in the course of performing job duties.

The Regulations were developed on the basis of the following documents:

1. Labor Code of the Russian Federation;
2. The concept of building a bonus system for personnel of JSC "ZZZ";

1.2. Application area

1.2.1. This Regulation establishes the procedure for awarding bonuses to employees of OJSC "ZZZ" for the results of labor achieved by them in the course of performing their official duties, and regulates the procedure for carrying out the following procedures for determining the variable part of material remuneration:

1. Calculation of monthly bonus payments to employees of electrical network enterprises;
2. Calculation of the monthly bonus fund of the divisions of the executive directorate of OJSC "ZZZ";
3. Distribution of the team's bonus fund among its employees.

1.2.2. The following officials of JSC "ZZZ" must know and use these Regulations in their work:

1. General Director of JSC "ZZZ";
2. Deputy General Directors;
3. Heads of structural units;
4. Department employees.

1.3. Conditions

1.3.1. This Regulation applies to permanent employees of JSC "ZZZ" who are included in the staff by Order of the General Director of JSC "ZZZ" or with whom an employment contract has been concluded.

1.3.2. The amount of bonus remuneration for employees of the Company OJSC "ZZZ" is approved by order of the General Director of the Company.

1.4. Restrictions

1.4.1. This Regulation does not apply to the following cases:

1. Determination of bonus payments to the General Director of the Company;
2. Determination of bonus payments to temporary employees hired to perform one-time work under a contract or employment agreement;

1.4.2. The amount of compensation (including bonus payments) for temporary employees hired to perform one-time work is established when concluding an employment agreement.

1.4.3. Bonus payments to permanent employees of the Company for performing work related to project forms of activity are determined individually and are carried out on the basis of the Order of the General Director of the OJSC (see clause 2.6).

2. BONUS SYSTEM

2.1. Bonus composition

2.1.1. JSC "ZZZ" establishes the following types of bonuses:

1. Monthly bonus for the main results of production and financial and economic activities.
2. Monthly and quarterly bonus for reducing commercial losses (for certain categories of personnel).
3. One-time one-time bonus for performing work related to project forms of activity.

2.1.2. Requirements for the procedure for calculating monthly bonus payments to employees of electric grid enterprises for the main results of production and financial and economic activities are established in section 2.2 of these Regulations. The procedure for calculating the bonus fund of the divisions of the executive directorate of JSC "ZZZ" is established in section 2.3. The procedure and rules for distributing the division's monthly bonus fund among its employees are established in section 2.4. of this Regulation.

2.1.3. General requirements for the procedure for calculating and paying bonuses for performing work related to project forms of activity are established in section 2.6.

2.1.4. The special procedure for calculating and paying monthly bonuses is given in section 2.5.

2.1.5. Requirements for the procedure for calculating and paying bonuses for the performance of work related to the reduction of commercial losses of electricity are established in a separate Regulation “On stimulating the material interest of the personnel of JSC ZZZ in reducing commercial losses of electricity and technological costs for its transportation.”

2.2. Calculation of monthly bonus payments to branch employees

2.2.1. The monthly bonus to employees of electrical network enterprises is paid from the wage fund of JSC "ZZZ".

2.2.2. A monthly bonus to employees of electrical network enterprises is paid in the month following the reporting month, provided that the enterprise fulfills the key performance indicators determined for it.

2.2.3. The monthly bonus to the employee is calculated as a percentage of the amount of the official salary (tariff rate taking into account additional payments and allowances to them in accordance with current legislation for the time actually worked).

2.2.4. The maximum bonus amount for employees (groups of employees) of an electrical network enterprise is calculated using the following formula:

P =75%*PHOTconst., (1)

Where
P - bonus for an employee or group of employees (in case of collective organization of their work);
FOTpost. - a permanent part of payments to an employee or group of employees (in case of collective organization of their work).
The maximum size may be reduced depending on the achievement of key performance indicators established for the PES.

2.2.5. The monthly bonus is determined for each employee individually based on two groups of indicators:

1. firstly, objective indicators characterizing the results of the electrical network enterprise;
2. secondly, indicators for assessing the personal contribution of an employee to achieving the results of the PES or a separate PES team (RES, site, team).

2.2.6. Two types of indicators are used to characterize the operation of an electrical network enterprise:

1. Basic indicators serve to determine the monthly amount of bonus payments to employees of the enterprise.
2. Additional indicators are calculated at the end of each quarter. Failure to comply with them leads to a partial reduction in the bonus accrued based on the main indicators in the last month of the quarter (up to 50% of the bonus accrued according to the main indicators).

2.2.7. For each key performance indicator, on the basis of which bonus payments to PES employees are calculated, its maximum share (in percentage) in the total bonus amount and the bonus scale are established. The composition of the main performance indicators for PES enterprises, their maximum share in the total bonus amount and bonus rules for each indicator are given in Appendix 1 "Indicators for assessing the performance of electric network enterprises of JSC "ZZZ". Appendix 1 also provides the composition of additional indicators (reducing the bonus in last month of the quarter).

2.2.8. Key performance indicators are considered independently of each other. The bonus is awarded separately for each performance indicator established for the unit, depending on the degree of its implementation. If funds are not accrued for one of them, the premium is reduced only by the corresponding share of the total remuneration.

2.2.9. In the case of organizing collective work (teams, sections, functional units of PES, etc.), the total bonus fund of the team (team, section, functional unit, etc.) is calculated using formula (1) (see clause 2.2.2). The calculated total bonus fund of the team is distributed among its employees depending on individual performance indicators according to the rules given in section 2.4.

2.2.10. The composition of key performance indicators of enterprises, their share in the total amount of bonuses and the bonus scale may change depending on the strategic and operational goals and objectives of ZZZ OJSC. Enterprise employees must be notified of changes in the composition and/or structure of performance indicators no later than a month before the changes are introduced. Changes in the composition and structure of performance indicators of divisions are made on the basis of the Order of the General Director of JSC "ZZZ".

2.2.11. Assessment of achievement of indicators and fulfillment of bonus conditions is carried out on the basis of accounting and statistical reporting data. Indicators for which accounting and statistical reporting are not established are determined on the basis of operational accounting data. Responsibility for the reliability of operational accounting lies with the heads of the relevant departments and services of ZZZ OJSC.

2.2.12. To clarify the rules for bonuses for divisions and employees of PES, electric grid enterprises can develop their own Regulations on bonuses.

2.3. Calculation of the monthly bonus fund of the divisions of the executive directorate of JSC "ZZZ"

2.3.1. The monthly bonus to employees of the executive directorate's divisions is paid from the wage fund of JSC "ZZZ".

2.3.2. The monthly bonus for a division of the executive directorate is calculated in the month following the reporting month, provided that the division fulfills the key performance indicators defined for it.

2.3.3. The maximum (basic) bonus amount per division is calculated using the following formula:

P = Premium PESaverage weighted * Number of employees, (2)

Where
P - bonus per unit;
PES average weighted bonus - weighted average bonus per employee in PES;
Number of employees - the number of employees in a specific division of the executive directorate.
The maximum amount may be reduced depending on the achievement of key performance indicators established for a particular unit.

2.3.4. Two types of indicators are used to characterize the work of the executive directorate unit:

1. Key indicators serve to determine the initial size of the division's monthly bonus fund.
2. Additional indicators serve to reduce the initial size of the division's bonus fund. Failure to comply with them leads to a partial reduction in the bonus accrued according to the main indicators.

The composition of the main and additional indicators of the divisions of the executive directorate is given in Appendix 2.

2.3.5. Calculation of the monthly bonus for the executive directorate unit is carried out according to the following rules:

1. If the Main Indicators are met, a bonus is calculated for the unit in the amount determined for each main indicator based on the basic amount of the bonus. In case of partial compliance with the indicator, the size of the Award is reduced according to a linear dependence (for example, for each percentage of failure to meet the indicator, the premium is reduced by 5%). If the indicator value deviates for the worse by more than a specified percentage, the monthly premium for this indicator is not accrued;
2. Deductions can be made from the bonus calculated based on the main indicators based on the values ​​of indicators that reduce the bonus payroll.

2.3.6. The distribution of the general bonus fund of the executive directorate division occurs in accordance with the rules set out in section 2.4.

2.3.7. The composition of key performance indicators of divisions, their share in the total amount of bonuses and the rules for calculating bonuses for specific indicators may change depending on the strategic and operational goals and objectives of ZZZ OJSC. Department employees must be notified of changes in the composition and/or structure of performance indicators no later than a month before the changes are introduced. Changes in the composition and structure of performance indicators of divisions are made on the basis of the Order of the General Director of JSC "ZZZ".

2.3.8. Assessment of achievement of indicators and fulfillment of bonus conditions is carried out on the basis of accounting and statistical reporting data. Indicators for which accounting and statistical reporting are not established are determined on the basis of operational accounting data. Responsibility for the reliability of operational accounting lies with the heads of the relevant departments and services of ZZZ OJSC.

2.4. Distribution of the team's monthly bonus fund among its employees

2.4.1. The distribution of the bonus fund of a team of employees (ID unit, team, section, etc.) among its employees occurs on the basis of assessments of the work of each specific employee in the past month. The team's bonus fund is distributed among employees in full (without remainder).

2.4.2. The size of the bonus for an employee is determined based on evaluations of his work during the month according to previously known criteria (evaluation indicators). Evaluations are given by the employee's immediate supervisor.

2.4.3. Grades are given on a three-point scale (2, 1, 0) on a special form. Employee evaluation indicators and the evaluation form are provided in the appendices (Appendix 3 and Appendix 4).

2.4.4. Based on the assessments received and taking into account the share of the employee’s official salary in the general permanent wage fund of the department, the bonus coefficient for a specific employee is calculated using the following formula:

KPSotr. = (Salary/Total)*(Balso/Total) (*)

Where:
a) KPSotr. - employee bonus coefficient;
b) Salary - employee salary;
c) Summocl. - the sum of salaries of all employees of the unit (permanent payroll of the unit);
d) Ballsotr - the employee’s final score (the sum of the employee’s points according to the assessment indicators, see Appendix 4);
e) Total score - the total sum of the final points of all employees.

2.4.5. The bonus is calculated in proportion to the specific weight of the bonus coefficient and the salary/tariff rate of the employee according to the following formula:

PRIZE = PHOTpr. other Salary*(KPsotr./SumKPsotr.)

Where:
a) Bonus - employee’s monthly bonus
b) FOTpr. other - division bonus fund
c) Salary - employee salary;
d) KPSotr. - employee bonus coefficient, calculated using the formula (*);
e) SumKPsotr. - the sum of bonus coefficients for all employees of the department.

2.4.6. To simplify the distribution of the bonus fund between department employees, a tool is used that automates this procedure (according to the above formulas). This tool is implemented in MS Excel table format and is given in Appendix 5 “Distribution of the monthly premium”.

2.5. A special procedure for calculating and paying monthly bonuses.

2.5.1. The rules for calculating and paying monthly bonuses may be changed in relation to the following employees and in the following cases:

1. When hiring employees for whom passing exams in PTE, PTB and PPB is mandatory in accordance with the requirements of the position held;
2. When awarding bonuses to employees working at 0.5 times the rate (salary), part-time or temporarily;
3. If an accident with a serious outcome occurs in the departments;
4. Upon dismissal of employees of JSC "ZZZ" in certain cases.

2.5.2. Newly hired employees for whom passing the PTE, PTB and PPB exams are mandatory in accordance with the requirements of the position held, the bonus is awarded after passing these exams, except for employees whose training program is designed for a period of more than one month. Workers suspended from work for violations of the above rules before passing the knowledge test will not be paid a bonus.

2.5.3. For part-time workers, employees working at 0.5 rate (salary) or temporarily, the issue of paying a bonus is decided by the administration when concluding an employment contract, taking into account the contribution of this employee to the results of the enterprise.

2.5.4. In the event of an accident with a serious outcome, the issue of paying a bonus to an individual employee, team, department, or production service that supervises or is responsible for the activities of these units is decided by the management of the enterprise based on the results of the investigation.

2.5.5. For employees who have worked for less than a full month due to conscription into the Armed Forces, transfer to another job, admission to educational institutions, retirement, dismissal due to staff reduction and other valid reasons, bonus payment is made for the actual time worked in the reporting period. Employees who quit voluntarily and have worked for less than a full month are not paid a bonus.

2.6. Payment of bonuses for project forms of activity.

2.6.1. JSC "ZZZ" provides the opportunity to award bonuses to employees for the following types of design work:

1. Performing a particularly important production task;
2. Development and/or implementation (implementation) of activities that led to a real economic effect.

2.6.2. The bonus for completing a particularly important production task (work exceeding the employee’s standard job responsibilities) is paid based on the decision and the corresponding Order of the General Director of ZZZ OJSC. This order also establishes the amount of bonus remuneration for the employee.

2.6.3. The bonus for the development and/or implementation (implementation) of measures that led to a real economic effect is paid on the basis of the decision and the corresponding Order of the General Director of ZZZ OJSC. This order also establishes the amount of bonus remuneration for the employee.

3. CONTROL AND RESPONSIBILITY

3.1. Monitoring the implementation of procedures

3.1.1. Monitoring compliance with the requirements of these Regulations is carried out by the Deputy General Director of JSC "ZZZ" for Economics and the Head of the Economic Department.

3.1.2. If violations are detected in compliance with the requirements of the instructions, the Deputy Director of JSC "ZZZ" for Economics and the Head of the Economic Department conduct a detailed analysis of the situation, as a result of which the following decisions can be made:

1. If the violation is associated with insufficient knowledge or understanding by the employee of the requirements for him, an explanatory conversation is held with the employee, and, if necessary, training.
2. If the violation is related to the dishonest performance of one’s duties, a memo is drawn up addressed to the General Director of OJSC “ZZZ” indicating the fact of the violation and a proposal for a measure of action.
3. In the event that the violation is systematic and is a consequence of a change in the conditions of work, proposals are prepared to change this instruction, which are drawn up in the form of a memo addressed to the General Director of ZZZ OJSC.

3.2. Responsibility of officials for compliance with this Regulation

3.2.1. All employees and managers involved in the performance of work bear disciplinary liability for failure to comply with the requirements given in this Regulation.

3.2.2. The imposition of disciplinary sanctions for poor quality, untimely or dishonest performance of one’s duties is carried out on the basis of the Order of the General Director of ZZZ OJSC.