Material incentives for personnel. Material incentive for staff is a way to achieve the company’s goals

Each of us has situations when we don’t feel like working at all. You can blame it on stress, depression, energy imbalance and magnetic storms. But sometimes the culprit is a lack of motivation to work.

What is motivation labor activity?

Perhaps not everyone will understand what we are talking about. After all, we get paid for our work, what other motivation is there? But wages are the first point in the system of material motivation for workers. And there are also methods of non-material motivation of staff. And in an enterprise, these types must coexist harmoniously. After all, no one can work for a long time in a company just for the sake of a wonderful team or a good salary.

Simply put, work motivation is that set of incentives that encourages us not only to go to work every morning, but also to work hard. maximum benefit For the company. Let's talk about each type of work motivation in more detail.

System of material labor motivation

This type of material stimulation of labor behavior is divided into direct and indirect motivation of work activity.

In fact, direct material motivation is the wage system for specific enterprise. Moreover, the employee’s salary must contain a variable part (even if not a very large one), which is influenced by the results of work. Thus, the employee will know that he is able to influence the level of his income. If the salary consists of one salary, then a person can have a desire to work harder only on the basis of interest in the profession or team, but without proper encouragement, enthusiasm will soon disappear.

The system of indirect material motivation is better known as the “social package”. There is a list of compensation that the employer is obliged to provide to the employee (vacation, sick pay, medical and pension insurance). But in order to increase motivation, the company can include additional items in the social package. For example, free (reduced) lunches, places in kindergarten, payment of additional pensions to an honored employee of the company, payment additional education employees, delivery of employees by official transport, etc.

System of non-material motivation for work activity

As mentioned above, financial incentives alone will not be able to keep an employee in the company; something more than money is required. Many managers are surprised to notice that employee engagement depends to a greater extent on factors other than salary and benefits package. These could be incentives such as:

ensuring a convenient work schedule (many creative people prefer a project-based work system rather than a clear routine schedule);


creating a comfortable microclimate in the team (competent work of a psychologist);

security career growth employees;

mentioning the employee’s name in the project he completed;

providing a parking space near the office;

holding intra-company professional competitions with awarding diplomas;

publishing a corporate newspaper with stories about employee achievements and congratulations on general (February 23, March 8, New Year) and personal (birthday, wedding day) holidays;

holding corporate events;

provision additional days vacation for successfully completed work

creating conditions for creative realization employees.

And of course, you need to remember that the labor motivation system must correspond to market conditions, which a competent employer must take into account. Plus, you shouldn’t forget about timely improvement of work motivation.

The main element of material incentives is wages.

Wages represent the price of labor power, corresponding to the cost of consumer goods and services that ensure the reproduction of labor power, satisfying the material and spiritual needs of the worker.

It is the main source of income for the employee, although not the only one (social payments may be made in favor of the employee ( material aid, vouchers for treatment, vacations, excursions are paid for, medical services can be paid for, assistance in education can be provided), the employee can receive dividends on the shares of his company and other income).

Wages perform reproductive and stimulating functions.

There are:

1) nominal (monetary);

2) real wages.

Nominal wage is the amount of money received by an employee during a certain period. It is divided, in turn, into:

a) accrued (before taxes are paid);

b) paid (minus taxes paid).

Real wages - it is characterized by the amount of goods and services that can be purchased by a worker at a given nominal wage and a given price level for goods and services.

The following factors influence the level of wages:

1) the cost of labor, that is, the cost of means of ensuring the life and ability of a worker (costs of satisfying the material and spiritual needs of the worker and his family), which, in turn, depends on the achieved level of well-being of society, traditions and can change as the country develops (people’s needs are growing, the costs of training them are growing, etc.);

2) qualifications, working conditions of the employee - undoubtedly, a highly qualified employee will have a higher level of remuneration (for example, the head of an enterprise or its structural unit will have a higher salary level than an ordinary employee of this organization, since the management presupposes the need to have higher qualifications and, in connection with this, to perform more complex work; an example is also a comparison of the qualifications and level of remuneration of a doctor and a nurse); the employee’s working conditions also affect the level of wages, since work in harmful, difficult, life- and health-threatening conditions must have appropriate compensation;

3) growth in worker productivity - the worker’s labor productivity (an increase in the quantity of products he produces, an increase in the volume of work he performs, of course, with an appropriate level of quality) allows him to increase his wages. However, labor productivity must grow faster than its payment, otherwise the gain from increased output will go into wages, but it should also be reflected in a reduction in production costs and prices;

4) conditions in the labor market - it is characterized by the relationship between demand for labor and its supply, the degree of intensity of competition between applicants for jobs, and the situation with unemployment. An increase in unemployment lowers the level of wages (in this case, the demand for labor is low), and vice versa;

5) results of the economic activity of the enterprise - receipt by the enterprise high level profit allows its management to pay bonuses (quarterly, annual) to employees, which has a positive effect on the level of their wages;

6) personnel policy enterprises - work to improve staff qualifications, “promote” employees to more responsible positions, increase the creative activity of staff, undoubtedly affects the level of wages;

7) the degree of socialization of wages - part of the amount of wages “goes” through various taxes and contributions to the state (for pensions, for free or preferential medical services), and the higher these deductions, the less funds remains at the employee's disposal.

It should be noted that the enterprise independently establishes the amount of remuneration, its form and system. The state determines the minimum wage (minimum wage). Minimum wage is social norm, and represents the lower limit of the cost of unskilled labor.

Tariff and above-tariff conditions of remuneration.

The basis for workers' wages are the so-called tariff conditions of remuneration. They provide regulation of wages depending on the qualifications of the worker and the complexity of his work.

The main elements of tariff conditions are:

Tariff and qualification reference books - they contain characteristics of the main types of work and qualification requirements, which apply to workers of various professions and categories;

Tariff rates - they determine the amount of wages per unit of time (hour, day, month) depending on the qualifications of the employee. They increase as the rank of workers increases;

Tariff schedules are tables consisting of a certain number of tariff categories (starting from 1st) and the corresponding tariff coefficients. The tariff category characterizes the qualifications of the employee; the higher his qualifications, the higher his rank. Tariff coefficients show how many times the work of an employee of each subsequent category is paid higher compared to the 1st category. In this case, the tariff rate of any category is determined by multiplying the tariff rate of the 1st category by the corresponding tariff coefficient. The tariff schedule is characterized by a certain range (spread) - this is the ratio of the tariff rate of the highest category of the tariff schedule to the tariff rate of its 1st category.

Non-budgetary enterprises determine the choice of constructing a tariff schedule, the number of its categories, and the size of tariff coefficients independently.

Public sector enterprises charge and pay wages in accordance with the state Unified Tariff Schedule (UTS), consisting of 18 categories.

No less important role supra-tariff conditions play a role in the formation of wages. They take into account special conditions worker's labor. For this purpose, a system of surcharges and allowances is used. These include:

1 compensatory additional payments - they are related to the working conditions of employees and the nature of their work. These are additional payments for work:

a) in harmful and difficult conditions;

b) at night;

c) overtime;

d) on weekends and holidays;

e) for the traveling nature of the work, etc.

They are set as a percentage of the tariff rate (salary).

2 incentive payments are additional payments and allowances for:

a) professional skill and high qualifications;

b) combination of professions and positions;

c) length of service and work experience;

d) admission to state secret and etc.

Compensatory additional payments and incentive payments characterize the work of a specific employee and are taken into account as part of the cost of products (services) of the enterprise.

In addition to compensation additional payments and incentive payments, employees can be awarded bonuses for achieving certain performance indicators:

a) for high quality products and customer service;

b) for saving raw materials, electricity, etc.

The source of bonuses is the profit of the enterprise.

Salary is divided into the following elements:

Basic salary

Additional salary

Bonuses based on the results of the entire enterprise

The basic salary is calculated for the actual time worked and work performed at the enterprise. It includes:

Payment according to tariff rates and salaries, according to piece rates, as a percentage of revenue for sold products(works, services);

Compensatory surcharges;

Incentive payments and allowances.

Thus, the basic salary includes tariff wages, as well as payments and additional payments of a compensatory and incentive nature.

The basic salary is taken into account as part of the cost of products (works, services) produced by the enterprise.

Additional wages are payments for time not worked at the enterprise. These payments are established in accordance with labor legislation.

Additional salary includes payment:

Leaves (annual and additional, educational);

Severance pay upon dismissal of employees;

Preferential hours during a shortened working day for teenagers and the disabled;

Special breaks from work for nursing mothers;

When sending employees to advanced training courses;

Downtime is not the fault of the employee;

Time to perform government duties, etc.

Additional wages are taken into account as part of the cost of products (works, services).

Bonuses based on the results of the entire enterprise are rewards based on the results of the financial and economic activities of the enterprise. They are paid from the profits remaining at his disposal. Their size is determined by the enterprise independently. For each employee, they depend on his personal results, his contribution to the overall results of the enterprise, continuous work experience at this enterprise and other conditions provided for by the Regulations on bonuses. An example of such payments is the so-called thirteenth salary.

The employee salary structure is the same for all enterprises and consists of two parts:

Constant - determined by the personal contribution of the employee and taken into account in the cost of products (works, services);

variable depends on the performance of the entire enterprise and is paid from profits.

The size of the variable salary must be sufficient to create the necessary material interest of the managerial employee in fulfilling the accepted obligations stipulated in the contract.

Consider monetary incentives.

Long-term incentive schemes are introduced to stimulate and reward management for the company's long-term growth and prosperity, as well as to provide long-term perspective management decisions. If only short-term goals are taken into account, a manager, for example, can increase the profitability of the enterprise by reducing the cost of maintaining equipment, which could have a negative impact in two or three years.

Another reason for using these schemes is to force executives to stay with the company for as long as possible, giving them the chance to accumulate some capital (such as company shares) based on the long-term success of the company. There is a long-term incentive scheme or capital accumulation programs - the right to repurchase shares. The popularity of this scheme is constantly changing, due to economic conditions and trends, the situation within the company, attitudes towards long-term incentives and other factors.

A stock repurchase right is the ability to purchase a specified number of shares of a company at a specified price within a specified period of time. Managers hope to make a profit by exercising their right in the future, but at the current price. The assumption is that stock prices will go up, not fall or stay the same. Unfortunately, this depends not only on the actions of management, but also on general economic conditions.

There are several other types of long-term incentive schemes. The right to evaluate shares is usually combined with the right to repurchase. This allows the recipient to either exercise his right (to repurchase shares), or to evaluate them in monetary terms (or in the form of shares), or to carry out some combination. A target-based scheme awards shares if a specific financial target is achieved, such as growth in earnings or earnings per share. A restricted shareholder scheme involves the transfer of shares to the manager free of charge, but with certain restrictions that are determined by internal instructions companies.

For example, shares may be withdrawn from a manager if he leaves the company before a specified period of time. Finally, in the case of a phantom stock scheme, the manager receives not shares, but notional units equal in value to the company's shares. After some time, he receives their value (usually in cash).

The need to tie executive pay to firm performance in order to make it more risk-taking has led many firms to introduce pay-for-performance schemes. Performance-based schemes are schemes in which payment is dependent on financial performance against targets set at the start of a multi-year period.

The manager's task, if economic motivation is used, is to develop a performance bonus scheme, piecework system or employment agreements. This task is by no means easy, since the situation in each company is unique and, therefore, the bonus system must be unique for each case. It also depends on the specialization of the personnel.

Not all methods of economic incentives can have a motivational effect on employees, however, there are several basic provisions on bonuses that do not affect the specifics of the company and are universal. They should guide the manager when introducing methods of economic motivation:

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

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

There must be some acceptable method of measuring this increase in productivity.

Employees should feel that bonuses are based on additional rather than normative efforts.

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

Most often, the sales manager introduces himself tough nut to crack, he sells not only the products, but also himself in the company. Sometimes it can be difficult to make it work according to certain rules, but it is quite possible. The secret is in a competent motivational remuneration model. It’s worth trying to establish the right system - and the result will follow very quickly, and perhaps even exceed your expectations.

Maxim Melnikov,

Commercial Group Manager, MSM (Chevron)

In this article you will read:

    Why do you need financial motivation for staff?

    How to improve the efficiency of sales managers

Four years ago we introduced the so-called product scheme material motivation of staff 1 . The system is based on four interconnected blocks. However, we didn’t just take a ready-made tool, but adjusted the model according to the company’s requirements, including ranking the work of branches depending on their level. As a result, we received a development trajectory for employees in the company, starting from the lowest level and ending with department heads, which made it possible to increase the efficiency of ace managers, as well as ensure relatively quick adaptation of newcomers.

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We have published in this article a delegation algorithm that will help you free yourself from routine and stop working around the clock. You will learn who can and cannot be entrusted with work, how to correctly assign a task so that it is completed, and how to supervise staff.

1 This model is most often used in FMCG companies.

Zero level of material motivation for staff

The first level of the system of material labor motivation is typical for new employees in any branch of the company. Its main feature is a fixed rate. As a rule, new employees receive a salary according to the average market wage in the region. So, for example, in Moscow it is 40,000 rubles, in the Urals and Siberia - also about 40,000 rubles, and in Far East- about 30,000 rubles: the closer the branch is located to the capital, the higher the salary.

The zero level exists only during the probationary period, and at this stage we do not require the manager to deal and sell. This Coca-Cola and Pepsi can be sold from day one - customers are familiar with the drinks. The specificity of our company is working with technical products, and there are a number of nuances here.

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Over the course of three months, the beginner receives tasks that, having solved, he will easily move on to the next level. Firstly, this is a study of the assortment (a businessman, of course, must know what he sells). Secondly, determining the advantages of the product and the company, as well as knowledge additional services: opening credit lines, own delivery, etc. And finally, searching for new clients and expanding the base. If a manager has mastered the first two points, then he can cope with the third without difficulty. I would like to note that the development of the database is carried out constantly at all stages, and at the zero stage the employee is just learning to attract potential clients.

Material motivation for work. The main motive at level zero is the manager’s desire to join the company’s staff. At the end of the probationary period, the businessman must have certain skills and knowledge - this is what we pay him for.

Flaws. An employee has only one motivation - to join the company's staff, to probationary period he does not receive bonuses from sales.

Advantages. The company trains workers for its needs. We advance the manager; if he copes with the tasks, then he moves on.

Stage zero shows: you can do nothing and get paid, but the chance of staying in the company will be zero. The first-level pay model suggests the opposite.

The first level of the material motivation system

I have already mentioned that our model is applicable not only to each merchant, but also to the branch as a whole. The first level is typical for branches in the formation phase, operating on the market for less than a year (we have such in Samara and St. Petersburg). In a simplified form, the scheme looks like this: salary plus bonus for completing a certain amount of tasks.

This level limits an employee’s earnings, but allows the company to strengthen and get on its feet in a particular region. The salary is usually small - about 10,000 rubles. But a manager can earn an additional 40-50 thousand rubles. on the bonus program. Distinctive feature The first level is that bonuses are awarded not as a percentage of a specific transaction, but based on the result of achieving specific goals. Practice shows that at this level a manager can cope with at least four tasks. Moreover, two of them are mandatory - fulfilling the sales plan and regulating the level of receivables. The upper limit for the number of tasks is not limited and depends on the work of a particular department and the desires of the employee himself: in some places managers perform only four tasks, and in others - seven ( table 2).

Fulfillment of the sales plan. For example, each seller has individual plan for sales: sales plan for Chevron, Eneos products, etc. If the manager has made from 85% to 110% of the plan for each product category, his task is calculated based on the percentage, where, for example, 100% = 15,000 rubles. also for each product category. The amount of the 100% bonus depends on the specific branch, but it should be within 10-20 thousand rubles.

Regulating the level of accounts receivable. The overall level of accounts receivable is determined individually for each sales department. The employee has the right to dispose of his piece of debt, and if he maintains it at the required level, he receives a reward of 10,000 rubles. This bonus is valid only if the sales plan is met.

For example, there is a plan: to sell 1000 units of products with an acceptable debt level of 100,000 rubles. (this is the 100 percent value). In fact, the sales plan was fulfilled by 70%, that is, 700 units of goods were sold. In this case, the manager who fails to meet the sales plan is not awarded a bonus for maintaining accounts receivable.

Another situation: the level of accounts receivable is determined at the level of 100 thousand rubles. The manager not only fulfilled the sales plan, but also achieved a reduction in receivables to 95 thousand rubles. Thus, he exceeded the plan by 5%. Then he receives a bonus in the amount of 105% of the cost of this task - 10,500 rubles.

It should be noted that the maximum percentage of the plan for which we reward with bonuses is 110%.

Flaws. Limited earnings: The manager may want to earn a million, but at this level he completes the tasks and will not receive more than their value.

Advantages. The company clearly regulates and diversifies the employee’s activities, and also limits his earnings.

At the first level of the financial incentive system, the branch is established and many tasks are solved in parallel: attracting customers, capturing market share. The remuneration system at the second stage is based on receiving remuneration from each transaction.

Second level of the remuneration model

The second level is intended for more experienced personnel and branches that have been working in the market for about five years (the company has such branches in Moscow and Novosibirsk).

Material motivation of personnel. The employee's desire to increase personal income.

For each employee, depending on experience and position, a salary is determined, the amount of which corresponds to average salary by region (for example, in the Central region it is 20-30 thousand rubles). In addition, managers receive a percentage of sales, as well as bonuses (fines) based on the results of working with receivables. A significant difference from the previous level is that the manager receives a bonus depending on the performance of the department as a whole.

Fulfillment of the sales plan. For example, at the end of the month, the department fulfilled the sales plan by 88%. As a result, in addition to salaries, the management team receives 4% of the gross profit on all sales, which is distributed proportionally to all employees in the department. In the system of distribution of bonuses, as in the calculation of salaries, the employee’s experience, his ability to sell and analyze the market are taken into account.

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Let's assume that 4% of gross profit is RUB 50,000. Kuznetsov, as the head of the department, is due 30% of this amount (the percentage is determined arbitrarily), which will amount to 15,000 rubles. Kuznetsov’s final salary will be 45,000 rubles. Employee Dremlyuga will be charged 22% of the amount, which will be 11,000 rubles, and he will ultimately receive 33,500 rubles, etc.

At this level of material motivation for work, it is necessary to take into account a fixed 5% of general bonus teams for paying customer department employees who are not involved in the sales process, but provide document flow.

Material motivation of personnel through regulation of the level of receivables

Let’s assume that the receivables of a particular manager by the end of the month should not exceed 50,000 rubles. If the employee maintains the debt at this level or exceeds it within 5% (up to 52,500 rubles), we are ready to pay the manager an additional 5,000 rubles to the salary. If an employee has increased debt liability, but by no more than 10% (up to 55,000 rubles), we add 3,500 rubles to the salary. We seem to say to the person: “You may make a mistake, but we trust you and are sure that next month you will show good result" This is a subtle move in personnel management. Let us add that such a system works in branches whose employees are already experienced sellers and are sufficiently endowed with independence, that is, where the manager basically decides for himself to whom and what deferment of payment he can give. In the future, such a step will bring only advantages - customer loyalty and new orders.

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If the accounts receivable of this manager reached the level of 55-57.5 thousand rubles. (deviation from the plan by 10-15%), we do not pay him anything, but we also do not apply penalties. An increase in the level of liability by 15 and 20% (more than 57,500 and 60,000 rubles, respectively) entails a fine of 3,500 or 5,000 rubles. This is a carrot and stick method, which in this case is quite effective.

Flaws. The dependence of remuneration on the results of the team’s work: someone sold a million worth of products, and someone sold only a thousand, but both will receive approximately the same salary.

Advantages. A clear distribution of bonuses and fines, which contributes to the organization of employee activities.

The system of material motivation at the second level assumes greater freedom of action for the sales manager, but also gives him a certain share of responsibility: the amount of remuneration for the entire department depends on the work of each person. The salary formation scheme at the third level is fundamentally different from all previous ones.

The third level of material labor motivation

The third level zone includes heads of company departments. Managers at this level do not have a salary component; their income is formed based on a rate of 4% of gross profit and regulators (bonuses and fines) of accounts receivable, similar to the second level. The heads of sales departments work in a similar way in branches that have been present on the market for more than 10 years (in Vladivostok, Khabarovsk).

Material motivation of personnel. The manager is interested in constantly increasing the number of transactions, since he is completely dependent on sales percentages. In addition, the employee as a leader is aimed at the organization competent work department.

Flaws. Unstable income: in one month you can earn 100,000 rubles, and in another - only 20,000.

Advantages. Powerful personal motivation of the manager, which is a plus for organizing the team’s work.

This is what the four-level remuneration model that we have implemented in the company looks like. What makes our system unique is its flexibility: if problems arise in a branch, you can change motivation levels and see if there are any positive changes. Only the zero level remains unchanged; it is applied by default to all new managers.

The advantages of this system of material motivation are undeniable for us. Its implementation made it possible not only to increase the efficiency of employees and systematize the work process, but also to interest the managers themselves in personal and team results.

This model of work made it possible to survive crisis times painlessly, not only maintaining the previous sales volume, but also increasing it. In 2008, when most companies' sales were down, our number of transactions increased by 7% over the previous year.

Maxim Melnikov received an education in the specialty “translator of Japanese and English languages" and "economist" in the Far Eastern Federal University. Improved management skills at the base educational program SRC Business School. With MSM (Chevron) since 2005.

MSM (Chevron)- commercial group of the company "World Lubricants" (MSM) - the official distributor of automotive products in Russia and the CIS. On the market since 1997, the main office is located in Vladivostok. Partner portfolio - more than 3,400 companies. Official website - www.wlbs.ru

Every step we take is the fruit of motivation. It’s raining outside, the weather is nasty and, as they say, a good owner won’t let his dog out for a walk. But you get up and go to the store, or not - it all depends on how much you need what is in the store. That is, how much stronger your weather conditions are.

There are three types of motivation:

  • material;
  • moral;
  • administrative.

The goal of any kind of motivation is to create conditions for earning more money, so that work also brings pleasure.

Let's be honest, the material type of motivation is the most effective and fastest way to get a person to work.

Factors of material motivation

Material motivation is realized in several ways:

  • wage system (ratio of contribution to labor and money received);
  • performance tracking system (how much your salary will change if you increase productivity);
  • the opportunity to sell the funds received (what you can buy for the reward received);
  • additional motivation (payment of travel expenses, subsidized lunches, medical care paid for by the company, issue of company cards with discounts in sports clubs etc.).

In addition to material motivation, moral motivation is also considered effective. That is, if material motivation can be characterized as: “if you work better, you get more,” then moral motivation is: “if you work better, you achieve success, become a role model, an authority, a leader.”

One company came up with the following type moral motivation. An employee who has achieved particular success in his workplace receives his own office and the opportunity to personally choose a secretary. All this without promotion or salary increase. It turns out that this became a huge incentive for many “hard workers.”

Examples of material motivation

The easiest way is to engage in material motivation of employees based on the results of completed work. Every position has at least one performance indicator. For sellers this is the volume of sales, for manufacturers - the volume of production, its reduction in price and improvement in quality.

Let us give examples of the most common methods of material motivation in sales.

So, on average, a seller sells 40–60 units of goods per month, the premium for each unit sold is 1 USD. This means that his monthly bonus is 40–60 USD.

But he did a miracle and sold not 60, but 70 units. As a result, he will receive not the usual 60, but as much as 70 USD. Will there be a difference of 10 USD? especially encourage him to work extra hard next month? Hardly.

Second option. Since the average sales volume is 50 units, the manager sets the monthly sales target at 50 units. Only after reaching this milestone will he receive 1 USD. for each unit. This means that if he sells 49, he will receive nothing. In this case, the employee will bend over backwards to complete the plan. There is no point in exceeding it and there is no moral strength, because as a result, you will receive the same 1 USD. for a unit.

The third option is the choice of wise superiors. If a seller sells 50 units, he receives 1 USD each. per piece, if 70 - 1.5 USD. for a unit. So, he has two options: get 50 USD. or 105 – the difference is noticeable.

As a result, management ensures that one salesperson works for two.

In addition, it is necessary to use material methods of motivation not only with monthly, but also with six-month and annual overfulfillment of the plan. After all, if an employee fails the plan in a certain month, he will be able to recoup the money by exceeding the six-month target.

All this works great, but still, there is a little room left for the moral motivation of work.

A good job is not where you pay a lot, but where you enjoy your work. Moral motivation is much more complex than material motivation, because here there is an interweaving of ambitions, healthy competition between employees, opportunity, praise from the manager, recognition among colleagues.

After reading this article, you will find out

  • Why financial motivation of personnel still plays an important role in the stable operation of the company
  • Three tasks that need to be solved before implementing the provision on material motivation of personnel
  • Examples of material motivation of staff
  • How to give bonuses for good work

Material motivation of personnel is an important component in the work of companies with their staff. There are many pressing questions and nuances here - what salary and bonuses should I offer? Will this be enough for a worthy employee? Perhaps if I should have offered less, I would have still agreed? And when trying to answer each question, the number of nuances and doubts only increases. This is a completely normal situation in business, so we will pay special attention to this issue.

The motivation statement is one of the main documents for the company, indicating the list of employees, the amount of salaries and what they are paid for. However, this is not the only reason. With the competent and careful development of this document, appropriate remuneration and bonuses can be formed when employees are interested in the most rational use of their working time, motivated to improve the quality of work, identify defects, reduce costs and improve their skills.

Three tasks that need to be solved before drawing up staff motivation regulations

First task. You will need to monitor the salaries of your employees to understand the appropriate salaries for such employees.

Second task. It is necessary to clarify what the employer expects from its employees, and how well the employees meet such requirements and expectations.

Third task. Formation of tools that contribute to the retention of employees and the achievement of the company's goals.

When solving the first problem, it will be possible to understand whether the salary of employees in the company really corresponds to the level of the labor market. If the company's salaries are lower compared to the market, it may be difficult to retain its employees. To prevent such a situation from happening, you should communicate with management and draw up a schedule for harmonizing payments for employees. There will be joint work with the accounting and finance departments. Thanks to this interaction, it will be possible to maintain the company’s activities within its budget, and it is possible to identify subtleties and various nuances that need to be taken into account.

The solution to the second problem is to understand what the employer wants to receive from employees. Dealing with this is actually not difficult. To do this, you need to talk with the heads of your company, line managers, studying the financial statements of the organization for several recent years. You need to understand the effectiveness of your staff. If there are problems, you should ask yourself what should be done to eliminate the problems by motivating staff.

In particular, when communicating with line managers, a problem may be identified - a lot of employees’ working time is aimed at their personal goals. CEO noted that the company's workforce is expanding, but the company's profits are not growing proportionately. It is likely that the problem lies in insufficient motivation of employees to work more efficiently and productively.

Case Study

The new HR director of Paritet JSC carefully read the financial statements of his enterprise over the past few years. In the period 2008-2010, the company received revenue from the sale of products in the amount of 45 million rubles more compared to 2007, with an increase net profit by 15.7 million rubles – 2 times. It was decided to expand the staff by 15 people, but labor productivity only decreased by 2.1%. The organization operates standard system remuneration - at the expense of regular fixed salaries. According to the study, it was found that only 20% of employees can be motivated by such a payment system. Therefore, there was a need to switch to another payment system - salary along with a bonus. A point system for assessing the work of employees was formed, and a relationship was established between the points received and the size of the bonus received. Based on the results of the year, it was possible to confirm an increase in personnel productivity by an additional 3 million rubles.

The third task is to develop tools of material motivation, in accordance with which the interests of employees and their company are combined. We need to proceed from the understanding that it is not necessary to increase the salary, for example, the fixed part. You might consider providing additional payments for achieving certain results and achieving goals. In fact, the mechanism of bonuses and allowances is actively used. Thanks to this, the attitude of employees towards their job responsibilities will be more motivated.

Components of proper material motivation of personnel

First of all, you should understand that competent material motivation of personnel is formed from several elements. Including a fixed salary (for his established work time), variable part (paid depending on the fulfillment of goals or the number of sales), bonuses, bonuses, various compensations. Let's look at each of these points in more detail:

  • Fixed (fix) salary. This category includes a fixed part of payments, which is established for employees. For these fixed payments, the employee undertakes to do the specified work. It is important to understand that a fixed salary forces a person to do his duties, but is not able to guarantee his desire to do this.
  • Flex– flexible part. It consists of paying wages based on the percentage of work completed. In particular, interest may be paid on the company’s income or sales.
  • Bonuses and bonuses for employees are usually at the end of the month. Bonuses are paid for certain achievements, fulfillment of set goals, etc.

The main condition is that a transparent variable part is needed, the principle of its formation will be clear to employees. The best option is when it becomes clear to an employee from the first days in the workplace that his total income will depend on his actions and the company’s achievement of certain goals.

How is the situation in practice? In my practice, situations often arose when managers initially promised one percent of sales, but in reality replaced it with another. It is unlikely that this method will promote motivation - it simply kills it, destroys the trust of employees in their managers. The situation becomes even worse when the company has an extremely complex remuneration system, which even the managers themselves often do not understand.

It is necessary to understand that the opacity of the payment system causes distrust on the part of employees. If a person does not understand the principle of formation and calculation of his salary, one can hardly count on serious motivation on his part. Employees need to see that they are cared for and that the payment system is transparent.

How to rank staff when using material motivation

First level of employees– on which sales do not depend in any way. They are simply paid a salary for the work done.

Second level- maintenance staff. This category is represented by customer service, support service, etc. For these employees, you can provide a small percentage of the profit, since their work also to a certain extent affects customer loyalty.

Third level- people involved in sales. They are engaged in direct sales, achieving profit for the company. They can set the average percentage of payments - about 8-10% of the company’s profit.

Fourth level– heads of sales departments. They receive a relatively low salary, but expect a large percentage. Although the percentage may be set less than that of salespeople - for example, 5%. But the manager is subordinate to not one sales person, but 5 or more employees - their results will be summed up. Therefore, a percentage of the total sales of your department is taken.

Financial motivation: bonuses with which you will eliminate problems with personnel

Employees often do not go to work due to illness. For a business, this factor leads to serious financial losses. To solve the problem, you can approve an award “For the ability to value working time.” In this case, in last days of the outgoing year, periodic bonuses are paid for employees who did not go on sick leave or missed minimal amount working days.

Case Study

According to calculations at the plant, it was established that temporary disability in 2010 led to the loss of about 400 thousand man-days at the enterprise. The HR director took the initiative to introduce a bonus for employees who practically did not go on sick leave. This approach has significantly reduced the level of sick leave. As a result, people began to pay more attention to their health and were more motivated to go to work.

Significant staff turnover. The provision on material motivation can be supplemented with the award “For Loyalty to the Enterprise.” It is not necessary that such a premium be high. The size of the bonus should be tied to the employee’s length of service in your company. In particular, for those who have worked in the company for a year, 0.5% of the salary will be provided, 2 years - 0.8%, 10 years - 5%. However, this bonus should not be set for long-term employees. Otherwise, such material motivation of staff will not affect young people or newcomers. The payment frequency is one year.

Employees do not feel the connection between the company’s results and their salary. In particular, a prize “For financial indicators company" - it may simply be symbolic. Payments are made once a year or quarterly, depending on the profit of your company. If there is no profit, workers do not receive profit. Since bonuses do not relate to guaranteed payments (Article 191 of the Labor Code).

No interest in reducing production costs. To solve the problem, the award “For reducing costs and optimizing production” is suitable. Bonuses are paid based on the amount of savings achieved through the employee’s initiative.

Example

At the manufacturing plant detergents a special commission was formed. This commission accepts special proposals aimed at improving production and optimizing costs, reducing production costs and costs in the process. The amount of remuneration in this case was immediately announced - 1 thousand rubles, if the commission accepts the voiced proposal and decides to implement it. Moreover, after implementing the idea, the employee receives an additional 30% of his company’s savings. In total, 25 proposals were implemented during the year, allowing the company to achieve savings in the amount of 8.2 million rubles.

A large number of defective products. The provision on payments should be supplemented with a bonus “For identifying substandard products.” Such payments are made once a year or quarter. The bonus calculation is based on the volume of defective goods identified and the size financial losses problems that the company might encounter. For payments, a fixed or percentage amount per defect unit can be established. It is necessary to monitor that there is no increase in the level of defects after the introduction of this bonus. Employees should be interested in reducing the number of defects in production, and not in increasing the volume of identified defective products.

Employees are not interested in professional growth. A solution to the problem could be an award “For new skills and knowledge”, “For qualifications”, etc. The latter option is suitable if a regular rather than one-time additional payment is planned. In this case, the Regulations on material motivation must contain information - to whom, in what amount and for what these payments will be made.

Bonuses for completing new projects. Initially, you need to determine the share of participation individual employee in the overall implementation of the project. Some employees became the initiators and worked out the project in detail, others were involved in its implementation, and still others were assigned a leadership role. For each group, the Regulations must specify who receives a certain bonus, in what amount and for what.

How the bonus is calculated:

Bonus=Sei · Xi · Kv:

  • – the total amount of investment savings; Sei
  • Ksi – coefficient of the degree of project execution;
  • Kv – remuneration coefficient.

The amount of investment savings is determined by the following formula:

Sei = Szp – Szf:

  • – the amount of planned and actual expenses for the project. Szp, Szf

Formula for calculating the project completion rate coefficient:

Ksi = 1 – (Vf – Vp)/Vp, Where:

  • – planned and actual duration of the project. Vp, Vf

The remuneration coefficient is set in advance - it depends on the amount of savings. If it was possible to achieve savings of up to 1 million rubles, the remuneration coefficient is set at 5%, up to 10 million - 3%, if more than this amount - 1.5%. The bonus system has proven itself to be an effective means of motivating company employees.

Case Study

The construction company began implementing its new projects - 2 microdistricts. They were completely identical - using similar technologies, involving specialists of similar qualifications. However, bonuses were expected in one project, but they were abandoned in another. As a result, the first project was completed 3 months earlier, reducing losses by 2 times.

What else can be used as material motivation for staff?

Money is becoming the simplest means of motivating employees. Also great for this purpose:

  1. Providing gifts.
  2. Tickets to the theater and for going to various premieres.
  3. Attending various seminars and trainings (not necessarily in your specialty).
  4. Gifts related to personal hobbies.
  5. Payment for visits to fitness centers and foreign tours.
  6. Gifts for families (children, spouses - a fairly effective remedy).

In fact this list may continue. It is enough to show your imagination and better understand your employees what will be interesting to them.

What are the advantages of such motivators? In this case, relationships with employees are not limited only to the financial component. When you give something or encourage an employee, he sees the attention and care of management towards his person. Often a small gift can even be much more effective than the financial equivalent.

If you now decide to experiment, caution is required, since the incorrect use of such techniques can lead to negative consequences.

Caution in this direction is important. And try not to limit yourself only to the material component; in parallel, you should develop the intangible part - it is this combination that will allow you to achieve maximum motivation of employees to ensure the loyalty and cohesion of the team.

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

The productivity and profitability of any company depends primarily on the attitude of employees to their work. Everything is like in physics lessons: the efficiency of a system is the product of the efficiency of all its mechanisms. Obviously, one of the main tasks of the organization’s management is to motivate employees to fully devote themselves to work, professional self-development and honest fulfillment of obligations. In this article we will talk about the system of material incentives for personnel, as one of the proven ways to influence the efficiency of the team.

There are few people left for whom money is not a goal, but only a tool for achieving abstract happiness. Everything these days is measured in money, so you need to use this general monetization of life to your advantage, which is what material incentives for staff work can help you successfully cope with. It is customary to distinguish two types of material motivation: direct and indirect, each of which we will discuss below.

Direct motivation

You encounter this kind of motivation all the time, if not from your own experience, then you have definitely heard stories from friends and acquaintances. The most common method of material motivation of personnel is payment of an agreed percentage of total profits. Students handing out leaflets on the streets, call center employees, retail workers and many other employees are tied to this scheme. The more people you make clients of your company, the more double-glazed windows you sell, the more you will receive at the end of the month. Typically, a bonus is added to the fixed rate based on the number of sales made.

What can be said about such a scheme: it will work very successfully if you respect the work of your employees and adequately assess market opportunities. If an employee works hard for a month, doubles the plan and receives a bonus of 2 thousand, then he is unlikely to stay for the second month. The situation is similar when you ask a person to sell Bentley cars somewhere in the province. Summarize. There are two development options: either severe staff turnover due to inadequate conditions for setting salaries, or well-motivated personnel who have realized the direct connection between their own efforts and high salaries.

Personal monetary rewards. A good example material motivation of personnel are one-time cash payments as a reward for employee work. This approach makes it clear to employees that management does not perceive its staff as a faceless crowd, but closely monitors everyone’s successes. Yes, management will have to work hard themselves and department heads to monitor the “progress” of employees, but such personalization of work often bears fruit. Completed a complex project on time? In a crisis situation, did you go to work on your day off? Did you help out a colleague and, together with your task, managed to solve his problem? With proper material incentives for employees, all these merits should be rewarded not only with personal praise at the end of the reporting period, but also reflected in the payroll. Don’t forget about unexpected and therefore even more pleasant gifts for birthdays and other holidays. Even a 5-10% salary bonus will make it clear to the entire team that the desire to develop and the desire to help the company will be encouraged. Otherwise... “Why pay more?”

Company shares, securities. In the West, the practice of rewarding especially valuable employees with company shares or other securities It has taken root a long time ago and works great, but in our country it is in its infancy. It’s clear that no one will be handing out shares left and right, but especially valuable employees, whose departure would be a blow to the stability of the company, should be fed with such things. You can also reward for long service, putting pressure on the feeling of “patriotism” for the company: if, in addition to raising your salary, you transfer at least 1% of the shares to an old-timer, then this will become a very powerful source of motivation.

Salary increase. The most obvious system of material motivation for staff is the regular revision of wages. Usually accompanied by a short interview. If a person develops, evolves from a newcomer into an important member of the team, but this is not reflected in his income level, then within a couple of months there may be a completely reasonable desire to change his place of work to one where his superiors will soberly evaluate the work of his subordinates. Also, a review can lead to a reduction in salary or even dismissal of a person if his pathological laziness, ever-burning deadlines and other problems come to light.

Indirect motivation

Among the methods of material incentives for personnel, indirect motivation is a stable success, which will increase employees’ loyalty to the company and make them value their place. This may include fully paid vacation, a full social package with paid sick leave, a pension insurance system, profitable insurance, options for sanatorium treatment, and financial support for young families. Even without seeing money, a person will work more productively because of the feeling of security and confidence in the future. The words are banal and hackneyed, but they reflect reality perfectly.

Principles of material motivation of personnel

It’s one thing to choose a method of material motivation for staff, and another thing to successfully apply it in your company. This is especially true for large companies, where the walls have ears, and rumors and broken phones create so many reasons for offense and scandals that it’s scary to imagine. Why did Benjamin get a raise, but not me? Why does Evlampia earn more than me, even though I work here two weeks more? Yes, corporate ethics and, often, the employment contract imply a ban on disclosure and discussion of working conditions, but does this really save? To facilitate the integration of the system of moral and material motivation of employees, we advise you to familiarize yourself with the basic principles.

  1. Execution of obligations. This time from management. Management must follow this imperative if they want to achieve any success in business development. If you delay your salary a couple of times, unreasonably refuse a bonus, or ignore the rules you set yourself, all your efforts will come to naught.
  2. Regularity. Since you have introduced measures of material incentives for employees, please do not forget about them. It often happens like this: they announced the introduction of a bonus system, within a couple of months they paid good bonuses, realized that it was too expensive and that’s all. It is better to reduce the amount of remuneration, but consistently provide it to worthy employees.
  3. Transparency. Very important point, because of which all kinds of rumors and omissions arise. It should be like in a game where the rules are told before the game starts.
  4. Objectivity. Belongs to the same category as transparency. People will quickly notice if you pay ineffective favorites more and reward real hard workers with pennies.
  5. Carrot and stick. All types of material incentives for employees involve not only a system of bonuses and premiums, but also fines for failure to fulfill direct duties or violation of work hours. No matter how valuable an employee is, regular lateness or hours of talking on the phone in the hallway should not go unnoticed. Not being punished is very relaxing. And in general, without some kind of balance of justice, it is difficult to earn trust and keep a team in check, especially a large one. To begin with, you can punish not with fines, but with the deprivation of those same bonuses.
  6. Individual approach. This has already been discussed earlier, but we would like to once again focus your attention on the importance of personal communication in the system of material motivation for personnel. It’s worth setting aside a couple of days every 2-3 months to communicate with your wards, trying to get to know everyone better and making it clear that you are not ancient greek god from Olympus, but the same person. This is usually done by HR, but it is also useful for management to go out to the people.
  7. Supporting cohesion. Many modern methods of material incentives for personnel are aimed at rewarding collective work. Did the team involved in a large commercial project successfully complete the tasks? Express your gratitude not only with words, but also with a small bonus to all its participants.