Chief mechanic department bonus indicators. Bonus indicators. How to check the motivation system for demotivators

• How to choose bonus indicators.
• What must be included in the Bonus Regulations.
• In what cases can an employer refuse a bonus?
• How to competently justify a refusal of promotion?
• What are the consequences for an employer of an unreasonable refusal to provide bonuses to an employee?

The most common measure motivation employees is a cash bonus. Does it really work? How to choose appropriate bonus criteria? And how can one avoid being held responsible for deprivation of a bonus? Read about this in the article.

Employee encouragement

The Labor Code states that the employer rewards employees who conscientiously perform their job duties as follows:

• declares gratitude;
• issues a bonus;
• awards a valuable gift, a certificate of honor;
• presents to the title of the best in the profession.

The award occupies a special place in the list incentives. This is a monetary reward that is paid in excess of the established salary for labor success. The manager decides how much and for what achievements to reward employees.

Example of a KPI statement

When hiring, subordinates should clarify the following details:

• criteria and indicators for bonuses, i.e. in what cases and for what a bonus is given;
• in what cases does the employer have the right not to pay a bonus;
• in which clause of the employment contract are the conditions for bonuses reflected?

The employee should also be familiarized with the Regulations on Bonuses, if it has been developed at your enterprise.

Employee bonuses as the main method of encouragement

Each company itself develops a bonus system, determines the criteria for paying bonuses, and a system for motivating its employees.

How to choose bonus indicators

There are various criteria for awarding bonuses to employees. Each company chooses the system that will be more effective and convenient in practice.

Distinguish individual And collective indicators. Collective indicators are divided into performance indicators of the entire company, performance indicators of a structural unit/department, and performance indicators of a team, group, or section. Other bonus criteria also apply:

• quantitative indicators (volume of services provided; profit margin; quantity of products produced, etc.);
• time indicators (works completed or services performed within a certain period of time, average production time per unit of product, etc.);
• quality indicators (number of defects, customer complaints, warranty cases, staff turnover in the company, etc.);
• cost indicators (assessment of labor costs, loss of profit due to defects, etc.).

The manager himself determines which criteria for evaluating the work of employees are his priority. When choosing, you should rely on the following questions:

• How important is this or that indicator for the success and development of the company? If the total production volume increases regularly, will this affect business growth?
• How difficult will it be to measure, track, evaluate the selected indicator? Is it possible to automate the collection of data on this indicator?
• Will the bonus system be clear to ordinary employees? How to make a motivation system accessible and understandable to everyone?

Bonus system of only 500 ₽: case

The editors of the General Director magazine tell how a chain of spa centers changed the employee motivation system by introducing a daily bonus of 500 rubles, thereby increasing revenue by 30%.

How to prepare a bonus clause

After selecting criteria for evaluating employee performance, it is necessary to prepare an internal local act - Regulations on employee bonuses.

It is worth determining whether bonus be part of the remuneration system or serve solely as an incentive. Since this measure is stimulating in nature, it is paid when certain indicators are achieved. But there are examples when a company is obliged to pay all amounts, no matter what:

• If the bonus regulations do not specify when an employee may be deprived of a bonus.
• If the employment contract indicated the size of the bonus, but omitted a description of the cases in which it is paid.

An employer may provide for different types of bonuses in a local act. Some may be included in the wage system, others may be fixed as one-time payments.

Delimit salary And one-time awards can be done like this:

• Bonuses, which are part of the remuneration system, are paid for specific work according to approved indicators and are regular.
• One-time bonuses are incentives that the employer pays for certain achievements in work.

When preparing the Bonus Regulations, 4 points should be taken into account:

1. Bonus terms;
2. Criteria for calculating bonus payments;
3. Sources of funding;
4. Conditions under which an employee may be deprived of promotion.

Another sign that the bonus is part of the salary is the indication of expenses for it in the wage fund in staffing table.

Bonus terms

If the company’s local regulations establish that wages include a salary and a bonus, and establish criteria and indicators for bonuses, then the employer is obliged to follow these rules and pay the bonus as part of the wages.
If the employer wishes to reserve the right to choose, then it is necessary to record that he has no obligation to pay the bonus regularly (monthly).

Criteria for awarding bonuses

The Regulations should formulate what the bonus will be paid for. Quantitative, qualitative indicators and other evaluation criteria can be taken into account. It is permissible to pay a bonus based on the evaluative subjective decisions of the immediate supervisor if he believes that a particular employee made a special contribution to the overall result or completed an assignment of increased complexity.

A system in which quantitative and/or qualitative indicators of the effectiveness and efficiency of personnel work are taken into account is more objective and convenient. For each employee, position, staff position, key performance indicators are developed - KPI. Bonus conditions should take into account not only the interests of the business, but also the real capabilities of the staff.

According to international companies Advanced Performance Institute, Actuate Corporation, Adobe, about 20–25% of companies improve their operating performance using a KPI bonus system.

The Regulations can only indicate general bonus principles, and key indicators can be developed for each employee separately. This method is used for top management, KPI cards are prepared for managers.

Funding of awards

It is recommended to indicate in the local act from which sources the bonus part of the salary will be financed. An incentive is not a guaranteed payment, but an amount dependent on various indicators. This means it is permissible to tie it not only to personal results, but also to the efficiency of the enterprise as a whole.

Important: If the bonus is specified in the employment contract without reference to the Bonus Regulations, the dependence on the financial results of the company does not matter. The employee will have the right to claim incentive compensation in any case.

Deprivation of bonuses: deprivation of an employee's bonus

The local act should specify the criteria by which an employee may be deprived of an incentive. Depreciation cannot be considered disciplinary action. Consequently, the application of a disciplinary sanction with deprivation of a bonus cannot simultaneously be considered a double punishment.

It is necessary to specify in the Regulations all the reasons why the bonus will not be paid:

• failure to implement the plan;
• increase in company costs;
• being late for work;
• complaints from the company's customers;
• claims from regulatory authorities, etc.

One reason in a local act for deprivation of a bonus is not enough. The manager should adopt an order indicating for what reasons the employee’s bonus is not paid or the bonus is reduced in a given period.

In what cases is it permissible not to pay a premium?

This depends on which bonus option for employees is specified in local regulations or employment contracts.

First option– the employer has established a bonus as an incentive payment. This is a way to reward an employee for conscientious work and increase his interest in achieving high results for the company.

Second option– the employer has established a mandatory bonus. Such a bonus can be established in the employment contract in a certain amount or as a percentage of the official salary. It is indicated as a guaranteed part of the salary without any grounds on which the employee can be deprived of such a bonus.

Examples of wording in local acts, based on which the bonus can be regarded as stimulating and optional:

• “The annual bonus is paid to employees based on the achievement of key performance indicators for the year. This fact is confirmed by the assessment"
• “The employee is paid an annual bonus for the reporting year, which is calculated based on the achievement of key performance indicators established for the employee by the board of directors based on the results of work in the reporting year.”
• “The amount of the bonus is determined depending on the employee’s performance and the financial results of the company”
• “The basis for calculating bonuses is data from statistical reporting and operational accounting. Specialists are rewarded for reducing planned losses"
• “For production results and high achievements in work, employees may be paid bonuses, including a bonus at the end of the year. The amount of the individual bonus for each employee at the end of the year, half a year, month is determined based on an assessment of the employee’s individual performance results for the reporting period.”
• “The bonus is determined at the discretion of the employer and is paid based on the employee’s performance for the reporting period. The performance bonus is paid after the close of the relevant financial year based on the financial statements of the legal entity.”

How to justify refusal to pay bonuses to employees

The justification for refusing to pay an employee a bonus can be 2 factors recorded in the local act:

• Low worker efficiency. If the employee does not achieve the targets, the courts will not satisfy the claim for payment of the bonus.
• Low company efficiency. If a company shows poor results for the financial year, the employer may not provide bonuses to employees.

Responsibility of the manager for unreasonable refusal of bonuses

In an administrative procedure, a company can fine in the amount of up to 50,000 ₽, in the event that the manager unreasonably refuses to pay an employee a bonus if he fulfills all indicators. You will have to pay a premium, interest and compensation for moral damage.

If an employee contacts the labor inspectorate with a statement about a violation of his labor rights, the State Labor Inspectorate may conduct an unscheduled inspection of the company and bring the employer to administrative liability.

In this case, the inspection can only identify violations, but does not have the right to issue orders for the payment of bonuses.
As a rule, the courts cancel decisions on bringing to liability under Article 5.27 of the Code of Administrative Offenses, since payment of bonuses is not the obligation of the employer.

Example: The employer and employee entered into an additional agreement to the employment contract stating that the employee is entitled to additional payment for additional work, an allowance for length of service and a bonus. The employee was not paid the bonus, so he went to court.

The first instance and the appeal recognized the bonuses as guaranteed payments and satisfied the claim, including collecting monetary compensation for moral damage. The cassation did not agree with the conclusions of the lower courts and rejected the claim. The defendant’s license was revoked, so the plaintiff’s work responsibilities could not exceed the previous volume of work: there are no grounds for paying a bonus and compensation for moral damage.

Otherwise, the court determines the amount of compensation for moral damage based on the degree of guilt of the employer and other circumstances. Sometimes courts collect interest for late payment of premiums in the amount of not less than 1/150 of the Central Bank key rate for each day of delay.

"AGREED"
Chairman of the trade union committee
____________ P.P. Bortsov

"APPROVED"
General manager
OJSC "Company" OJSC "Company"

D.D. Directors

POSITION
on bonuses for economic service specialists involved in calculating wages for employees of the enterprise
OJSC "Company"

Introduced from ______________ year

This provision is introduced in order to ensure the stimulating effect of the bonus on achieving the highest possible performance results of the economic service of the enterprise in the preparation of wage reporting.

The reporting team includes:
— engineers for the organization and regulation of labor in the main and auxiliary production shops;
— accountant of the payroll office;
— specialists from the information technology department;
— HR department employees;
- PEO employees.

1. Indicators and amounts of bonuses

1.1. The bonus of each employee of the service depends on the degree to which the service achieves the bonus indicators established for it and, if all established indicators are met, the bonus is 30 percent of the official salary of the service employee.
1.2. The criterion for assessing the results of the monthly report is the timeliness and quality (absence of errors) of accrual.
1.3. The completion date of the report is, according to the approved salary schedule, the 10th day of the month following the reporting period.
1.4. If reporting is completed on time, the bonus is equal to the maximum amount - 30% of the official salary;
— for each day overdue, the premium is reduced by 5%;
— if the report is delayed by 3 calendar days, no bonus will be awarded.
1.5. The quality of the work performed is assessed by the presence (absence) of errors in the accrual.
1.6. Errors in accrued wages identified after the issuance of payslips are recorded and documented in a form by the shop standardization officers and submitted to the head of the PEO to identify the culprit (at what stage of the calculation the error was made). After analyzing the errors, the employee (group of employees) loses the bonus completely.

2. Procedure for accrual, approval and payment of bonuses

2.1. Bonuses for service employees are made monthly based on the results of work for the previous month on the basis of an order for the enterprise. The draft order is being prepared by the economic planning department.
2.2. The bonus to service employees is paid from the wage fund. The amounts of bonuses paid are included in the cost of products sold.
2.3. The bonus is accrued for the actual time worked in the reporting period. If an employee quits for any reason after working for less than a month, the bonus is not paid.
2.4. Full or partial deprivation of the bonus is made for the period of time in which the employee committed an omission from work.

Head of Planning and Economic Department P.P. Planners

"AGREED"
Chairman of the trade union committee
____________ P.P. Bortsov

"APPROVED"
General manager
OJSC "Company" OJSC "Company"

D.D. Directors

POSITION
on payment of bonuses to managers and specialists
capital construction department
OJSC "Company"

Entered with ____________-

General provisions

This provision is being introduced to improve the efficiency of the control functions of the capital construction department over the quality and compliance with the deadlines of repair and construction work performed by contractors.

This provision applies to the following department employees:
- head of department - deputy chief engineer;
— deputy head of department;
— technical supervision engineer;
- design and estimate engineer.

The bonus is calculated based on the indicators achieved and according to the time worked in the reporting period, excluding work on weekends, holidays and overtime.

Wages paid under this provision are included in the cost of production and are taken into account when calculating the average wage for employees.

If an employee is dismissed for any reason, no bonus will be awarded under this provision for that month.

The General Director may fully or partially deprive employees of bonuses for violating the internal labor regulations of the enterprise, safety and labor protection requirements, as well as for the lack of real labor contribution in the employee’s actions to achieve better performance indicators. The deprivation of the bonus is made for the period of time in which the violation occurred

Indicators of bonus fund formation

Bonus indicators and amounts for department employees are presented in the table:

No. Bonus indicators Bonus participants Amount of bonus, rub.
1 Timely completion of construction and repair work by contractors in accordance with concluded contracts.
-head of department - deputy chief engineer;

2500

2 Quality of work performed

Head of department - deputy chief engineer;

Deputy Head of Department;

Technical supervision engineers;

Design and estimate engineer
2500

500
1. Timely completion of construction and repair work by contractors in accordance with concluded contracts.

The bonus for this indicator is awarded on the basis of the “Report on the implementation of the schedule of construction and repair work” (Appendix No. 1), where in the column “actual completion date of work” the head of the OKS enters the completion date of the work. The condition for the bonus is 100% compliance with the deadlines for the work performed, that is, all work included in the monthly schedule must be completed within the deadlines established by the contracts.

2. Quality of work performed.

The bonus for this indicator is awarded in the same way as for the first indicator on the basis of the “Report on the implementation of the schedule of construction and repair work”, where in the column “assessment of the quality of work performed”, the person responsible for quality marks “satisfactory” or “unsatisfactory” upon completion of the work. The person responsible for quality is appointed by the chief engineer, depending on the type of work performed. The condition for the bonus is satisfactory grades for all work completed during the month.

Additional bonus conditions are

— timely submission of documents (before the 1st day of the month following the reporting month) on completed work to the financial and budget department. In case of late submission of documents, the amount of the bonus is reduced by 30% of the accrued amount based on the results of meeting the main bonus indicators;

— implementation of planned cost estimates. The basis is the “Financing Summary Report”, which is prepared daily by the finance and budget department. In case of overspending according to the estimate of planned expenses, the amount of the bonus is reduced by 20% of the accrued amount based on the results of meeting the main bonus indicators;

— timely submission of documents to the legal department in the event of non-compliance with the terms of the contract by counterparties (clause 16.1 of the STP “Procedure for analysis of contracts”). The terms and conditions for transferring documents to the legal department are specified in clauses 16.4, 16.5 of the STP “Procedure for analysis of contracts”. The basis is the daily report “Register of existing contracts”, which is compiled by the financial and budget department. For violation of this bonus condition, the bonus amount is reduced by 20% of the accrued amount based on the results of meeting the main bonus indicators

The procedure for calculating the bonus

1. The head of the capital construction department draws up a monthly “Schedule for the implementation of construction and repair work” (Appendix No. 2) by contractors. The basis for drawing up the schedule is the operational report “Register of existing contracts”.

2. The chief engineer, before the 29th day of the current month, checks all concluded contracts, the deadlines for their implementation, and agrees on the schedule for the next calendar month. Additionally, the schedule is approved by the head of the financial and budget department. The executive director approves the schedule.

3. Based on the results of the month, the head of the OKS draws up a “Report on the implementation of construction and repair work” according to the schedule. The report is agreed upon with the chief engineer, the financial department, which monitors the deadlines for submitting documents, and is approved by the executive director.

4. The head of the financial department draws up a certificate of compliance with the deadlines for submitting documents and a report on the fulfillment of the financing limit (Summary report on financing).

5. In case of failure to comply with the terms of the contracts by the contractors, the head of the OKS draws up a certificate of the documents submitted to the legal department. The certificate is approved by the head of the legal department, the head of the financial department and the chief engineer.

6. Based on the above documents submitted to the PEO, no later than the 3rd day of the month following the reporting month, the PEO prepares a draft order on bonuses for OKS employees.

Head of PEO
Agreed:

Director of Economics

Chief Engineer

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

System creation and development

As you know, the employer always acts in accordance with the articles of the Labor Code. According to the law, any manager has the right to reward employees who conscientiously perform their duties. In most cases, remuneration is calculated in monetary terms. However, some enterprises actively use a system of non-material bonuses such as issuing certificates, honor boards, etc.

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

The bonus criteria for employees of a budgetary institution are also established within the organization and may differ from a similar structure. In practice, the most widely used incentive system consists of two elements: salary and bonus. This is established by the relevant regulation, which comes into force after an order is issued from the head of the enterprise.

System elements

The choice of the bonus structure remains with the director of the organization. Before choosing a particular system, you need to make decisions on the elements:

• establish the conditions under which remuneration will be paid;
• determine employee evaluation criteria for bonuses;
• set goals that the company will achieve with the effective implementation of labor.

A motivation system is necessary to convince staff of the value and importance of active work. After all, if every employee tries hard, the end result will be an effective team that shows excellent results. A well-designed reward system has an impact on labor incentives, career growth, and staff cohesion. Responsible employees who cope with their responsibilities receive additional financial assistance.

There are several types of rewards:

• lump sum payment;
• for length of service;
• for a long stay in a specific organization;
• for high results over the planned calendar period.

If we talk about the criteria for motivating employees of a budgetary institution, then it’s a little simpler. Rewards are awarded for intensity, high results, and also for holidays. The main type of bonus in such organizations is for length of service.

Payment decision

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

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

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

Premium payment indicators

It is worth noting that rewards are issued without a specific algorithm. However, there are many disadvantages to this approach. With an organized motivation structure, the employer and staff will understand in what cases and for what rewards occur.

Employee bonus criteria are certain indicators, upon fulfilling which, employees receive additional payments. These include:

• fulfillment or overfulfillment of the set sales or service plan;
• compliance by the employee with the requirements of job and labor instructions, performing actions strictly according to the regulations;
• saving enterprise resources when carrying out activities;
• absence of defects in manufactured products;
• absence of disciplinary and material penalties for a certain calendar period;
• no customer complaints.

Executive remuneration

It is worth noting that not only ordinary employees, but also heads of departments, deputy managers and, in fact, the head of the company himself have the right to receive incentives. The remuneration structure is also prescribed in the Regulations and motivation system. The criteria for bonuses for employees in management positions may either coincide with the above or differ from them.

Indicators of incentives for managers include, first of all, the performance of the organization as a whole or specific departments. An important aspect is the volume of work performed over a certain period. To get a raise, it is necessary to prevent defects in production plants. Subordinates must act in accordance with job descriptions and labor standards. If a company specializes in concluding deals, you need to conclude the maximum number of profitable contracts. Of course, the direct responsibilities of the manager include improving the qualifications of employees and training them.

Salary and bonus

As noted above, most companies use a remuneration system consisting of a salary and a bonus part. The salary amount is established and specified in the employment contract of each employee. As for the criteria for bonuses for employees of a school, budgetary institution or any other organization, they are enshrined in the collective agreement on the relevant Regulations. It is worth noting that there are no restrictions; absolutely any indicators can be set.

For example, internal regulations stipulate one of the conditions:

• remunerations are paid in any amount without any indicators every month, quarter, year;
• only those employees who fulfill certain conditions receive incentives;
• bonuses are paid in addition to the salary if there have been no disciplinary sanctions or justified complaints for a certain period.

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

The bonus criteria for employees of an educational institution comply with generally accepted standards. In such organizations, there are all the same internal acts that describe the remuneration system in detail.

Point system

The second most popular motivation structure after the one described above. The bonus criteria for employees of preschool educational institutions (children's educational institutions) are based on this principle. Certain evaluation indicators are established in advance and prescribed in the Regulations. When each of them is completed, points are awarded. When there are enough of them, the employee receives a salary increase.

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

Let's consider an example of an internal act where a point system is established. An employee is paid a bonus in the amount of his salary if he scores 30 points in a month. Points are awarded as follows:

• implementation of the plan - 15 points;
• absence of disciplinary sanctions - 10 points;
• saving the organization's resources - 5 points;
• absence of defects and justified complaints - 5 points.

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

The criteria for bonuses for employees of preschool educational institutions are reduced to the quality of work performed, activity and achievement of high results. If a justified complaint is received, the employee will not receive additional remuneration.

Are bonuses recorded in the work book?

In the vast majority of cases, incentives are not included in the document of the working person. The employer, as a rule, does not have such an obligation. According to Government Decree No. 225 of April 16, 2003, regular bonuses provided for by the enterprise’s wage system are not subject to entry into the work book.

However, the same Resolution contains paragraph 24, which states that incentives provided for by law or local regulations of the company for certain merits are required to be noted in the main document of an employed person.

We can conclude that the employer enters data if the incentive is not provided for in the organization’s remuneration system. They also mark the employee in connection with the remuneration paid for labor merits. This provision does not apply to the criteria for bonuses for kindergarten employees, since staff receive maximum incentives for length of service. In practice, some incentive is paid on birthdays and holidays.

Ways to evaluate employees

As already noted, the manager evaluates the employee according to certain criteria at the end of each month. Bonuses for employees of a museum or other budgetary institution are carried out in accordance with the Regulations on remuneration.

The higher-priority characteristics of an employee that are subject to assessment include integrity and responsibility, the ability to quickly respond to changes, analysis, the ability to resolve conflicts, the desire to acquire new knowledge and skills, discipline, initiative, etc. New employee, Those who just get a job in an organization do not always immediately show their full potential. Often the best qualities appear after a certain time. If a person meets all the requirements, then conclusions can be drawn about assigning a monthly or even quarterly bonus.

The bonus criteria for employees of the school and other organizations are determined for each department. The employer needs to determine the characteristics that it will evaluate when selecting employees for compensation. Awards can be either individual or collective. The first ones are carried out in cases where it is possible to track the performance of each employee. This takes into account the type of wage, piecework or time-based.

In production, the reason for reward is an increase in the volume of products made, or an increase in its quality. An important factor is the reduction of labor intensity in the main processes. The manager independently decides which employees should be rewarded in monetary terms and for what.

The criteria for bonuses for employees of a budgetary institution include activity in the social life of the enterprise and the manifestation of initiative. Suggestions for improving the existing system, which is already performing well, are especially welcome.

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

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

Errors in employee bonuses

The remuneration system cannot work effectively if there are some punctures and shortcomings. What mistakes do employers make when creating a reward system? Let's take a closer look:

1. The payment of incentives is not related to performance results. Here, bonuses are provided to all employees of the organization, regardless of the performance of each employee and the enterprise as a whole. There are no efficiency criteria and methods for their calculation.
2. Bonuses as employee intimidation. For example, if staff do not fulfill the plan, there will be a full or partial loss of incentives. This leads to nervous breakdowns among workers and an unhealthy psychological situation in the team.
3. The reward is too small. In some organizations, regardless of employee bonus criteria, the accounting department, for example, receives the least. This is the wrong approach; the remuneration amount should be at least 20% of the salary.
4. It is impossible to meet the targets and receive a payment. Usually in such situations, employees simply lack motivation, because, despite the efforts made, there will be no return.
5. Explanations from employees are not accepted. As you know, failure to meet targets is often directly related to difficult life circumstances. If the result is unexpectedly bad, the employer needs to first understand the reasons and listen to the employees' version.
6. Defects in work are not corrected. It’s not enough to just let the employee speak, you need to take an objective approach to the matter. The manager must identify the real cause of the failure and develop specific measures to eliminate the gaps.
7. Lack of moral reward. Of course, if you choose one type of motivation, most will stop at the material. But do not underestimate the moral side. Any employee will be pleased if the manager, in addition to the monetary payment, says a few kind words.

Conclusion

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

When creating a reward system from scratch, you need to take into account the personal characteristics of employees. It should be understood that all people are different. One person can accomplish some things with ease, but for another it is an incredible challenge. The best employees need to be encouraged, but not overextended, to avoid loss of motivation. As for fines, this is at the discretion of each manager individually. Some people actively use deprivation, while others don’t even want to hear about it. Fines have different effects in different situations. Before making a final decision, the manager needs to study everything carefully to make the right choice.

APPROVED
by resolution of the State Committee
Council of Ministers of the USSR
on labor and wages issues
and the Presidium of the All-Union Central Council of Trade Unions
dated February 4, 1967 N 84/P-5
(as amended September 28, 1972)

Standard provision on bonuses for employees of industrial enterprises transferred to a new system of planning and economic stimulation of production

STANDARD PROVISIONS
ABOUT BONUSES FOR INDUSTRIAL WORKERS
ENTERPRISES TRANSFERING TO THE NEW SYSTEM
PLANNING AND ECONOMIC
PRODUCTION INCENTIVES*

________________________________________________________________
At present, there is no data on the action or repeal of this act.
This Standard Provision applies to the extent that it does not contradict
Labor Code of the Russian Federation
_________________________________________________________________

* The State Committee of the USSR Council of Ministers on Labor and Wages, together with the All-Russian Central Council of Trade Unions, in separate resolutions, approved standard provisions on bonuses for employees of enterprises in other sectors of the national economy that were transferred to a new system of planning and economic incentives (railway transport enterprises, civil aviation, public river transport, road transport and a number of others).

("Bulletin of the State Committee of the USSR Council of Ministers on Labor and Wages", 1967, No. 4)

The standard provision is being introduced in order to strengthen the material interest of workers, managers, engineers, employees and other categories of employees of industrial enterprises in increasing production efficiency, increasing sales volumes and improving product quality, increasing profits, increasing labor productivity and profitability of production.

The standard provision applies to all industrial enterprises (production associations, mining departments, combines and trusts, which apply the Regulations on the Socialist State Production Enterprise), transferred to the new system of planning and economic incentives, regardless of their subordination

I. Bonuses for workers

1. Bonuses for workers under these Standard Regulations are made from the wage fund and the material incentive fund formed from deductions from profits.

2. Bonuses can be given for individual and collective work results according to the following indicators:

- fulfillment and overfulfillment of production plans for product output and increasing labor productivity, technically sound production standards, monthly and shift standardized tasks, compliance with and reduction of repair time for technological equipment;

- improving the quality of products in comparison with the technical conditions, established standards and planned targets (increasing the grade of products, improving the quality of ore, fuel, concentrate and intermediate products, manufacturing high-quality products and handing them over to the technical control department from the first presentation);

- improving the quality of work performed (compliance with the technological regime, parameters, work schedules, technical requirements);

- savings against the plan or established standards for the consumption of raw materials, materials, tools, fuel and other material assets, reducing the standardized losses of raw materials while ensuring the production of high quality products, increasing the yield of suitable products, increasing the extraction (selection) of non-ferrous, precious and rare metals, chemical and petroleum products;

- improving the results of economic activity of a team, site, workshop, production (in terms of product sales, profit, cost or its individual elements, profitability);

- mastering new production (maintenance) standards when revising them based on the introduction of organizational and technical measures in accordance with paragraph 34 of the resolution of the CPSU Central Committee and the USSR Council of Ministers of October 4, 1965 N 729 *.

* SP USSR, 1965, N 19-20, art. 153.


At individual production sites, taking into account the specifics of the work, other indicators may be established for bonuses for workers.

Workers can be awarded:

for meeting established bonus targets;

for exceeding established bonus targets;

for fulfilling and exceeding established bonus targets.

3. Bonuses for improving the quality of products (work performed) should be made, as a rule, subject to the fulfillment of quantitative indicators of work (production plan, production standards, standardized tasks), and for fulfilling and exceeding quantitative indicators - subject to compliance with established quality indicators of the product products (work performed).

4. The amounts of bonuses for professions and groups of workers are established differentially, taking into account the tasks assigned to them and production conditions.

Higher bonuses are provided for basic work, in production with complex technological processes, when mastering samples of new equipment and new types of products, as well as in areas where technically sound standards are applied (production, maintenance, consumption of raw materials and materials, etc.), developed on the basis of industry standards or standards that are more progressive than industry standards.

The maximum amount of bonuses paid to workers at the expense of the wage fund should not exceed the total maximum amount of bonuses provided for in this industry by current Government regulations.

In seasonal industries during the season, maximum bonus amounts (depending on the length of the season) can be set to 80% of monthly piecework earnings (tariff rate, salary) so that the total amounts for all indicators do not exceed 4.8 monthly tariff rate ( salary) of a worker per year. The list of seasonal industries and the season period during which this procedure is in effect are established by the ministry (department).

Bonuses paid from the material incentive fund are not limited in size.

When awarding bonuses for savings in raw materials, materials, tools and other material assets, the total amount of bonuses paid to workers should not exceed 50% of the amount of savings received for a site, team, unit or workplace, in comparison with consumption standards approved by a higher organization or the head of the enterprise. The amount of savings is calculated based on the prices provided for by the plan.

5. Specific indicators and conditions for bonuses, as well as the size of bonuses, are established by the head of the enterprise in agreement with the trade union committee.

6. Bonuses are paid, as a rule, based on the results of work for the month. If necessary, the head of the enterprise, in agreement with the trade union committee, can establish other bonus periods.

7. Bonuses are calculated on the worker’s earnings at piece rates or tariff rates (salaries) for the time actually worked. The procedure for calculating bonuses is established by the head of the enterprise in agreement with the trade union committee.

For work on holidays and overtime, bonuses are calculated on earnings at single piece rates or at a single tariff rate (salary).

8. Bonuses paid based on the collective results of the work of a team, site, workshop, production are distributed among workers in proportion to the wages accrued to them. At the same time, the head of the enterprise or the head of the workshop (production), together with the trade union organization, can increase or decrease bonuses for individual workers, taking into account their contribution to the overall results of work, but by no more than 25 percent.

9. The basis for calculating bonuses is data from financial statements, operational accounting and laboratory control.

10. Bonuses awarded to workers are approved by the head of the enterprise or the head of the workshop (production) on the recommendation of the foreman, installation manager or other official in charge of the production site.

11. Bonuses from the wage fund are paid to workers regardless of the state of expenditure of the wage fund at the site, workshop, production or enterprise.

II. Bonuses for managers, engineers and technical workers and employees

12. Bonuses for management, engineering and technical workers and employees in accordance with these Standard Regulations are made from a material incentive fund formed from deductions from profits.

13. Managerial employees of the enterprise (director, chief engineer, deputy directors, chief economist, head of the planning department, chief accountant, senior accountant as chief accountant, head of the technical control department) and employees of the enterprise management staff are rewarded for fulfilling and exceeding the plan for product sales (profit), production profitability, targets for increasing labor productivity and the share of new products (high-end products and new and improved consumer goods). At the same time, in case of failure to meet targets for increasing labor productivity and the share of products of the highest category and new and improved consumer goods, bonuses paid to these employees under this Standard Regulation are reduced depending on the degree of fulfillment of these indicators or are not paid in full. The issue of reducing or depriving management employees of bonuses is decided by a higher organization, and management employees - by the head of the enterprise. (Revised September 28, 1972)

Bonuses based on product sales are made at those enterprises where the material incentive fund is formed depending on the growth of product sales, and based on the profit indicator - at enterprises where the material incentive fund is formed depending on the growth of profits.

In certain industries (productions), other bonus indicators may be established for management employees of the enterprise and employees of the management apparatus of the ministry (department) with the participation of the Central Committee of the trade union.

14. Bonuses to management employees of the enterprise and employees of the enterprise management apparatus for fulfilling and exceeding indicators are paid subject to the conditions for bonuses established by the higher organization with the participation of the relevant trade union committee. In this case, a mandatory condition for bonuses is the fulfillment of the plan for the most important production range (group assortment), which is taken into account when creating a material incentive fund.

Ministries (departments) may decide on the issue of bonus payments to these employees in cases of failure to fulfill the plan for certain major types of products in the reporting month (quarter), if these products were manufactured and sold in the previous period or discontinued at the request of the consumer (customer), confirmed by the State Planning Committee of the Union republic, ministry (department).

15. Ministries (departments) may allow heads of enterprises, as an exception, to establish, in agreement with the trade union committee, other indicators and bonus conditions for engineering and technical workers and employees of individual structural divisions of the management apparatus, taking into account the characteristics of their work.

16. Indicators and conditions for bonuses for engineering and technical workers and employees of production, workshops, services and sections are established by the head of the enterprise in agreement with the trade union committee, taking into account the specific tasks facing each structural unit, as well as their importance in increasing production efficiency. Such indicators and conditions may be, for example, the fulfillment and exceeding of the plan for the volume of product sales, profit, profitability, cost of production (or its individual elements), labor productivity, product quality, rhythm of production, completion of work on time and ahead of schedule.

The head of the enterprise, in accordance with paragraph 34 of Resolution of the CPSU Central Committee and the Council of Ministers of the USSR dated October 4, 1965 N 729, can reward craftsmen and other engineering and technical workers of production sites who were directly involved in the development and implementation of organizational and technical measures for reducing the labor intensity of production.

17. Engineering and technical workers and employees of auxiliary workshops and sections are awarded bonuses according to the indicators established for employees of the enterprise management apparatus, or according to the indicators established for the production facilities, workshops, services and sections they serve.

The head of the enterprise may, in agreement with the trade union committee, when appropriate, establish bonuses for employees of auxiliary workshops and sections based on their performance indicators.

18. Along with the mandatory bonus conditions, if non-fulfilled, bonuses are not paid, additional bonus conditions may be established, failure to comply with which serves as grounds for reducing the amount of bonuses, but not more than 50%.

Additional conditions are established for the management employees of the enterprise by a higher organization with the participation of the relevant trade union committee, and for other employees - by the head of the enterprise in agreement with the FZMK.

19. Artists, designers, sculptors, fashion designers, heads of art workshops and laboratories and other workers of similar professions may be awarded bonuses according to certain provisions approved by the head of the enterprise in agreement with the trade union committee.

20. For executive employees of the enterprise, the size of bonuses for fulfilling and exceeding bonus indicators is established by a higher organization with the participation of the relevant trade union committee; they cannot exceed the average size of bonuses for engineering and technical workers and employees for the enterprise as a whole (as a percentage of their official salaries).

For the rest of the engineering and technical workers and employees, the size of bonuses is established by the head of the enterprise in agreement with the trade union committee, differentiated by production, workshops, services, sections, departments and other divisions of the enterprise, based on the volume and complexity of planned tasks, the achieved level of use of production assets, as well as the value structural divisions in the enterprise system.

For employees of each structural unit, bonuses for meeting bonus targets are set in the same amount as a percentage of their official salaries.

21. Bonuses for management, engineering and technical workers and employees are made based on monthly or quarterly performance results. In some cases, by decision of a higher organization, agreed with the relevant trade union committee, other bonus terms are established.

Superior organizations may allow enterprises, when awarding bonuses to managers, engineers and technical workers and employees based on monthly performance results, to take into account the implementation of the plan in terms of sales volume (or profit) and production profitability on an accrual basis within the quarter. Bonuses for exceeding the plan in these cases are paid only based on the results of work for the quarter.

22. If there is an overexpenditure of the wage fund for the enterprise as a whole, recalculated by the percentage of plan fulfillment (relative overexpenditure), bonuses accrued to executive employees of the enterprise management apparatus are reduced by the amount of the allowed overexpenditure, but not more than 50% of the accrued bonuses, for a period until overruns are reimbursed.

If the enterprise compensates for the overexpenditure of the wage fund within a period of up to 6 months, the specified employees are paid 50% of that part of the bonus that was not paid in previous periods due to overexpenditure of the wage fund.

In the event that an enterprise has overexpended its wage fund in the reporting month (quarter), but for the period that has elapsed since the beginning of the calendar year, there are sufficient savings in the wage fund, recalculated in accordance with the implementation of the plan, accrued bonuses to management employees are paid in full size.

In the same order, bonuses are paid in case of overexpenditure of the wage fund to management employees of production, workshops and services of the enterprise. In this case, overexpenditure of the wage fund is taken into account only for the corresponding production, workshop and service.

Those responsible for spending the wage fund include employees whose positions are listed in the List approved by the State Committee of the USSR Council of Ministers on Labor and Wages and the All-Russian Central Council of Trade Unions dated February 28, 1959 N 169, taking into account the changes made to the said List by the State Committee of the USSR Council of Ministers on Labor and Wages and the All-Union Central Council of Trade Unions dated December 30, 1965 N 819/39.

Bonuses are awarded to senior foremen (heads of sections) and foremen regardless of the state of expenditure of the wage fund for the section, service, workshop, production and the enterprise as a whole. At the same time, the head of the enterprise, if there is an unreimbursed overexpenditure of the wage fund in the area, caused by the fault of the senior foreman (head of the area) and the foreman, can reduce the size of bonuses for these employees, but not more than 50 percent, as in the month in which the overexpenditure occurred, and in the next month until it is reimbursed with the subsequent payment of bonuses in the amounts established by clause 22 (paragraph 2) of this Model Regulation.

If there are savings in the wage fund for the enterprise as a whole, the head of the enterprise has the right to pay bonuses in full to management employees of production, services and workshops who have improved their work, but have not yet compensated for the overexpenditure of the wage fund committed during the previous period.

23. The basis for calculating bonuses to management employees of the enterprise and employees of the management apparatus of the enterprise is data from financial statements, and for calculating bonuses to employees of production, services, workshops and sections - data from financial statements and operational accounting.

24. Prizes are approved:

management employees of the enterprise - a higher organization;

the rest of the engineering and technical workers and employees - the head of the enterprise.

The head of the enterprise may, in agreement with the trade union committee, taking into account the quality of work and personal contribution of the employee, increase or decrease the bonus accrued to the employee, but not by more than 25%. The specified increase or decrease in the size of the bonus for executive employees of enterprises is carried out by a higher organization.

III. General provisions

25. Premiums for the reporting period (month, quarter, season) are paid no later than one month after the end of the reporting period.

26. For employees who have worked for less than a full month (quarter, season) due to conscription into the Soviet Army, transfer to another job, admission to an educational institution, retirement, dismissal due to staff reduction and other valid reasons, bonus payment is made for actually worked time in a given accounting period.

For newly hired employees, a bonus for time worked in the first month of work can be paid at the discretion of the head of the enterprise.

27. The head of the enterprise and the heads of higher organizations are given the right to deprive individual employees of bonuses in whole or in part for violation of production and technological instructions and other production omissions. The list of production omissions for which employees may lose bonuses is established by the head of the enterprise in agreement with the trade union committee. When establishing a list of production omissions, the enterprise’s fulfillment of tasks and obligations to supply products in the range corresponding to the concluded contracts (accepted work orders) must be taken into account.

In cases of administrative or criminal liability, as well as the use of public sanctions for hooliganism, employees may be deprived of bonuses in accordance with the Decree of the Presidium of the Supreme Soviet of the USSR of July 26, 1966.

The right to decide the issue of depriving workers of bonuses in whole or in part in the cases listed above is also granted to the head of the workshop (the corresponding structural unit) independently or on the recommendation of the foreman.

Persons who commit absenteeism are deprived of their bonus in whole or in part.

When submitting draft wholesale and retail prices with deliberately inflated production costs to the pricing authorities, a bonus is given to the director, deputy director for economic affairs (chief economist), head of the planning department, chief (senior) accountant of the enterprise for fulfilling and exceeding the plan for the sale of products (profit), profitability of production, targets for increasing labor productivity and the share of products of the highest category and new and improved consumer goods are not paid for the period in which the specified violation was committed.

Deprivation or reduction of bonuses is formalized by order (instruction) of the relevant manager with a mandatory indication of the reasons and must be made for the billing period in which the omission in work was committed. (Revised September 28, 1972)

28. Bonuses to workers from the material incentive fund are paid within the limits of the portion of the funds of this fund allocated according to the estimate for bonuses to workers. Bonuses for management, engineering and technical workers and employees - within the limits of the funds of the material incentive fund allocated for bonuses for these employees.

The distribution of the material incentive fund for bonuses to workers, management engineering and technical workers and employees, adopted in the estimate (in percentage), is maintained with an increase (decrease) in the fund due to overfulfillment (underfulfillment) of the plan.

Funds allocated to the material incentive fund for improving (against established targets) indicators for labor productivity and the share of products of the highest category and new and improved consumer goods are allocated to bonuses for workers, managers, engineering and technical workers and employees according to these indicators. These funds can also be used to increase bonuses for increasing labor productivity and improving the quality of products, paid to workers from the wage fund under existing bonus systems. (Revised September 28, 1972)

29. To provide bonuses to employees based on the results of the first and second months of each quarter, enterprises can make advance deductions from profits to the material incentive fund. These deductions are set in amounts that ensure the payment of bonuses accrued to employees.

Bonuses based on work results for the third month of each quarter are made within the limits of the material incentive fund, calculated based on the enterprise’s performance indicators on an accrual basis from the beginning of the year (or from the time of transfer to a new system of planning and economic incentives in a given year).

30. Based on this Standard Regulation on Bonuses, the head of the enterprise, in agreement with the trade union committee, approves the provisions on bonuses for workers, managers, engineering and technical workers, employees and other categories of employees of the enterprise (junior service personnel, security, etc.).

Indicators, conditions and amounts of bonuses are established annually when the annual plan is approved. At the same time, multiple indicators and bonus conditions should not be allowed.

In order to increase the efficiency of the application of bonus systems, ministries and departments, with the participation of the Central Committee of trade unions, taking into account the positive experience and characteristics of industries, develop recommendations for bonuses for workers, engineering and technical workers, office workers and other categories of employees of enterprises.

Employees of the enterprise are notified of the entry into force of the Regulation on bonuses, changes or cancellations no later than two weeks in advance.

The text of the document is verified according to:
"Legislative acts on labor",
1976