Indicators in the bonus system
Posted: Sun Jan 19, 2025 5:40 am
Indicators in the bonus system play an important role in determining what achievements and results will be rewarded. They can be quantitative and qualitative. And each of them has its own characteristics.
Quantitative bonus indicators are specific numerical values that can be measured. They are preferable because they allow an objective assessment of the work performed. For example, these can be the following counting indicators: the volume of manufactured products, the indicator of reduction of production defects (measured in natural units: pieces, meters, liters, etc.), the company's profit from the sale of goods or services (measured in rubles), and so on. Quantitative indicators are usually used in the production/service sector, where it is easy to measure and compare the results of work.
Qualitative bonus indicators are india car owner data package used where the use of numerative ones is difficult or inappropriate. They are most often needed in the creative sphere or in work where the quality of work is of great importance. But this approach is less accurate. It is important to emphasize: when using qualitative criteria, it is necessary to carefully select the indicators for evaluating the work of personnel. This will help to avoid a subjective approach and unfair payments.
Indicators in the bonus system
It is necessary to establish the procedure and conditions for the payment of bonuses. This can be done through local regulations, such as a separate provision on bonuses or the inclusion of information on incentive accruals in the regulation on remuneration. It is important that the system of monetary incentives takes into account the interests of both the employer and the staff.
The Resolution of the Constitutional Court of the Russian Federation dated 15.06.2023 No. 32-P establishes restrictions on the possibility of depriving employees of bonuses:
Bonuses can only be withheld for the period during which the employee received a penalty.
The maximum reduction in the amount cannot be more than 20% of the monthly salary.
The principle of proportionality must be observed: the bonus cannot be reduced by the same amount for an employee with comments and for one who was reprimanded.
It is very important to ensure transparency of the bonus system, including the conditions for accrual, frequency and procedure for payments. Only in this case will employees clearly understand what requirements they must meet in order to receive a monetary incentive. It is necessary that the indicators on the basis of which bonuses are paid are realistic. If the criteria are initially so high that even the most effective departments and employees cannot achieve them, then the requirements should be revised.
Balanced bonus systems should be used. This can help the organization align the interests of employees and the goals of the business strategy. A bonus matrix can be developed as a supplement to local acts and regulations.
Key performance indicators for material incentives should be related to the actual volume of work and take into account all factors that affect productivity. This includes both quantitative and qualitative aspects, and takes into account seasonal and other factors that may affect the achievement of goals and objectives. For example, if a company focuses on increasing production volumes, it must be understood that the percentage of defects may increase due to haste. Therefore, it is important to correctly prioritize and balance bonus indicators so that the fulfillment of some conditions does not hinder the implementation of others.
Creating an effective reward system requires careful planning and consideration
Quantitative bonus indicators are specific numerical values that can be measured. They are preferable because they allow an objective assessment of the work performed. For example, these can be the following counting indicators: the volume of manufactured products, the indicator of reduction of production defects (measured in natural units: pieces, meters, liters, etc.), the company's profit from the sale of goods or services (measured in rubles), and so on. Quantitative indicators are usually used in the production/service sector, where it is easy to measure and compare the results of work.
Qualitative bonus indicators are india car owner data package used where the use of numerative ones is difficult or inappropriate. They are most often needed in the creative sphere or in work where the quality of work is of great importance. But this approach is less accurate. It is important to emphasize: when using qualitative criteria, it is necessary to carefully select the indicators for evaluating the work of personnel. This will help to avoid a subjective approach and unfair payments.
Indicators in the bonus system
It is necessary to establish the procedure and conditions for the payment of bonuses. This can be done through local regulations, such as a separate provision on bonuses or the inclusion of information on incentive accruals in the regulation on remuneration. It is important that the system of monetary incentives takes into account the interests of both the employer and the staff.
The Resolution of the Constitutional Court of the Russian Federation dated 15.06.2023 No. 32-P establishes restrictions on the possibility of depriving employees of bonuses:
Bonuses can only be withheld for the period during which the employee received a penalty.
The maximum reduction in the amount cannot be more than 20% of the monthly salary.
The principle of proportionality must be observed: the bonus cannot be reduced by the same amount for an employee with comments and for one who was reprimanded.
It is very important to ensure transparency of the bonus system, including the conditions for accrual, frequency and procedure for payments. Only in this case will employees clearly understand what requirements they must meet in order to receive a monetary incentive. It is necessary that the indicators on the basis of which bonuses are paid are realistic. If the criteria are initially so high that even the most effective departments and employees cannot achieve them, then the requirements should be revised.
Balanced bonus systems should be used. This can help the organization align the interests of employees and the goals of the business strategy. A bonus matrix can be developed as a supplement to local acts and regulations.
Key performance indicators for material incentives should be related to the actual volume of work and take into account all factors that affect productivity. This includes both quantitative and qualitative aspects, and takes into account seasonal and other factors that may affect the achievement of goals and objectives. For example, if a company focuses on increasing production volumes, it must be understood that the percentage of defects may increase due to haste. Therefore, it is important to correctly prioritize and balance bonus indicators so that the fulfillment of some conditions does not hinder the implementation of others.
Creating an effective reward system requires careful planning and consideration