The best ways to motivate employees without raising their salaries. Russian benefit system Key topics of the forum

In Russia, the development of an employee incentive system began 7-9 years ago. According to research by Russian experts, many managers, analysts, engineers, who make up a third of the middle class and are the backbone of many modern companies, several years ago only thought about changing jobs, about something more attractive, primarily in the material sphere. “Is it really possible to work with a team, a significant part of which lives the so-called life behind the scenes (i.e., dreaming of a new job and a higher salary)? Such employees cannot work with full dedication,” they say in well-known Russian companies.

According to Russian managers, the No. 1 problem that negatively affected employee performance in the 1990s was the opacity of salary formation. The fact is that no matter how hard the company’s management tried, they could not keep the salary levels secret. Many people knew who received $1000 and who only received $500. Therefore, over time, leading Russian companies moved to a more transparent system: each employee was given his place in the company’s financial network, told about his capabilities and the mechanism for upward mobility.

To increase employee motivation, some Russian companies use bonuses not only for exceeding the plan, but also for initiative and activity at work, business risk, attracting clients and self-education. For compliance with each item, a certain percentage is awarded. Such employees are rewarded in the traditional way - with money.

But non-financial remuneration, which is gradually being introduced in Russian companies, is perceived by employees as belonging to the company and as a manifestation of its concern. Although the standard set - health insurance, lunch, cell phone - does not always work as an incentive element, since these small “work gifts” are perceived by employees as benefits.

As an example, consider the Cafeteria system developed by one of the Russian companies. Its idea is that after a probationary period, an employee is assigned a certain number of points based on the assessment of his immediate supervisor. If an employee has earned 4 points, then he can choose benefits from a basket - paying for a mobile phone, playing sports, learning English, etc. The “long service” point increases every six months. Each job position has its own value - the higher the position, the higher the points. If there are not enough points, you can resort to an element such as a loan. Thanks to feedback from management and staff, a benefit in the form of “vacation” was born.

However, this system has its drawbacks and risks. According to Moscow expert Sergei Ryakovsky, sometimes it is quite difficult to manage such a system, in addition, there is a risk of complicating the procedure for receiving benefits by team members. And if a crack forms in the system, it is difficult to fill it with anything. For the sake of benefits, a company employee will most likely agree to be a cog in a large mechanism and work for the benefit of the team. Of course, it is possible to abolish moral and material incentives and replace them with purely monetary ones (many companies have returned to this system). But based on the monetary element, it is hardly possible to create a cohesive team of like-minded people.
One of the advanced Russian companies has implemented a “cafeteria” system with the following conditions: for exceeding the plan, the implementation manager, for example, receives a point, and having collected the required number of points, one “benefit”.

The list of benefits was compiled from those wishes and preferences that were proposed by the managers themselves. For receiving one point you get the opportunity to go to a dolphinarium, theater or museum. And 30 points is a tourist trip abroad. This system provides for not only adding points for exceeding the plan, but subtracting it in case of underfulfillment. According to Russian experts, in general this system is transparent. The employee knows in advance how and for what he can receive a benefit. He is ready to increase his activity in order to achieve it. This is exactly what the company needs. There is no envy and no conflicts in the team.

The contractual motivation system receives its development in the employee’s job descriptions and documents communicated to him already during the period of testing and adaptation:

Inner order rules;

Regulations on occupational safety and health;
- fire safety regulations;

Regulations on intra-facility regime;

Instructions on the protection of confidential information and the information system;

Regulations on access control;

Rules for the use of technical security and alarm equipment;
- rules of behavior in emergency situations;

Regulations on the employee’s attitude to the property and interests of the company;

Regulations on the intra-company hotline;

Instructions for ensuring safety in the workplace.
A job description is the most important element of an employee’s administrative motivation.

Regulatory documents allowing to carry out administrative and legal motivation personnel:

Regulations on the competitive selection of applicants for vacant positions, on the hiring and dismissal of personnel (regulates the procedure for hiring and firing, concluding and terminating an employment contract, the procedure for conducting a competitive selection and the criteria for this selection);

Personnel development program (directions, procedure for internships and other possible forms of training);

Regulations on personnel adaptation (mentoring, supervision, socio-psychological support of personnel during the period of adaptation and rotation);

Regulations on personnel assessment and certification;
- Regulations on working with young specialists (conditions for assigning the status of a young specialist, the procedure for conducting an internship, creating a council of young specialists);

Regulations on the formation and preparation of the reserve;
- Regulations on the labor dispute commission and the procedure for its consideration of individual labor disputes;

Regulations on working with veterans (structure of the veterans council, social programs, etc.).

In order to increase company safety, reduce risks in the use of personnel and reduce the likelihood of official disputes with employees, certain relationships between personnel and the company should be regulated by a contractual system. Components of this system:

Agreement on financing employee training at the expense of the employer;
- agreement on non-disclosure of confidential information;

Employee commitment and avoidance of conflicts of interest;
- agreement with the employee on interaction with the administration;

The employee’s obligation to return property, money and documents upon dismissal;

An obligation not to use company resources for personal purposes;

Agreement on limiting part-time work;

Obligation to compensate for damage, etc.

The HeadHunter North-West research service conducted a federal survey to find out what kind of compensation package employees want to receive and what employers actually provide. More than 3,000 respondents from 82 regions of the country and 25 professional fields took part in the study.

63% of respondents noted that their company provides a compensation package. The majority of employers who provide a compensation package to their employees most often offer payment for mobile communications (43%), voluntary health insurance (42%) and organize corporate events (38%). The top five most frequently provided options by companies are dentistry and meal plans.

In the structure of personnel costs, payments for compensation packages can amount to significant amounts. It is all the more important to understand how relevant the costs are and truly meet the wishes of employees. Based on the results of the employee survey, we see slightly different priorities for benefits - the top 10 included not only voluntary health insurance and mobile communications, but also payment for fitness, nutrition, training, flexible hours and the opportunity to earn additional days for vacation or periodically work remotely. Corporate holidays, despite the fact that the time and financial costs of organizing them are often quite large, were not included in the top 10 wishes of employees at all. For example, in the IT/Telecom sector, only a third of respondents expressed a desire to include corporate holidays in the compensation package, but every second employer offers them. Respondents noted the largest gap between reality and the wishes of employees in the following options: “payment/reimbursement of fitness costs” (14% receive such an option in the compensation package, 48% would like to receive it), learning a foreign language (14% receive, 43% would like ), VHI for family members, corporate kindergarten, compensation for education costs, rental housing. This confirms the trend that more and more people want to find a balance between work and personal life, as well as the interest of employees in assistance from the employer to take care of the health of the whole family, compensation for training and housing. Another interesting point. According to a HeadHunter survey, most specialists would prefer to independently choose the benefits that suit them, rather than receive a fixed, “out-of-the-box” package. This format is also more beneficial for the employer, because allows you to redistribute the budget in a targeted manner. For employees who have moved from other regions, the issue of providing a service apartment is more relevant than paying for a fitness club or corporate events. For those whose activities involve communicating with people or public speaking, the ability to reimburse the costs of beauty salon services is important. According to the survey results, only 14% of employers are currently willing to provide an optional compensation package.

The greatest unity of opinion between employees and employers is observed in the terms after which new employees must be provided with a compensation package. The majority of respondents (54%) consider it correct to receive it after completing a probationary period, while 44% of survey participants noted that this is exactly what is customary in their companies.

Pay, reward, publicly praise or give gifts - what is the best way to motivate employees to work purposefully and effectively? Experts with whom Eexecutive. ru discussed this issue, they are unanimous in their opinion that the company will not go far on purely cash bonuses - it is ineffective and expensive. At the same time, exclusively cash payments, as well as “classical” incentives in the form of providing a social package, remained in the last century. Currently, these methods are successfully combined with new ways to infect an employee with work zeal. So how can you instill a cheerful work ethic in your staff? We have the answer to this question and successful examples from practice.

Deviate from the set of standard benefits

According to a recruiting agency analyst Luxoft Personnel Alena Daragan, non-material motivation as a tool for increasing employee loyalty in recent years has gradually gone beyond traditional methods of encouragement - awarding certificates, diplomas, medals or providing additional vacation days - and is becoming increasingly important compared to material motivation.

“Today, companies compete with each other in a variety of ways of non-material motivation to attract and retain employees - organizations sometimes have to show remarkable ingenuity, providing more and more intangible benefits in order to somehow stand out from others,” says Alena Daragan. - At the same time, a number of bonuses, which a few years ago could be considered a significant advantage when choosing a place to work, now do not represent effective motivation tools due to their widespread use. For example, the importance of voluntary health insurance is lost, since it is difficult to find a serious, developing company that does not provide it. In the same situation, there were such options for non-material motivation as the provision of a comfortable office, the organization of recreation areas, sports and cultural events, parties, hobby groups, and so on. We can say that these types of motivation are becoming a “mandatory program” for all large companies.”

Combine non-material and material methods of incentives

In turn, the head of the personnel selection group of a recruitment agency "Unity" Oksana Samokhina notes that in modern companies, non-material motivation is a rather complex tool, the importance of which is difficult to overestimate: “There are many examples of non-material motivation of personnel. This could be the prospect of acquiring new knowledge and skills; providing interesting work with prospects for job and professional growth; feeling of involvement in the company's business; creating conditions conducive to the formation of professional pride and personal responsibility for work; the presence of a challenge, providing opportunities to express oneself in work; personal recognition and among colleagues - presentation of valuable gifts, certificates of honor, display on the honor board for special merits, awarding orders and medals, badges, conferring honorary titles - as it was in the USSR and is still used only in a slightly modified form; stimulation with free time (providing additional days off, vacations, choice of vacation time, flexible work schedule).

At the same time, according to Samokhina, it is unacceptable to use only one of the motivation methods. Methods of material and non-material motivation should be used together in a clearly balanced proportion.

Set goals correctly for employees

The expert also points out a common mistake of companies - when developing the motivation of subordinates, management often forgets a very important point - setting tasks and goals. “The procedure for setting goals with the right approach is a powerful method of motivation, since employees develop a focus on achieving results and the performance criteria become clear to them,” the expert notes.

“Everyone is different, and everyone’s motives are also different, and if you already have a group of people, a team, who together with you implements your vision of business development, then you constantly need to maintain the spark of motivation within them, both creating a team spirit and with each individual,” says Oksana Samokhina.

Show that the company cares about each employee

Certificates are certificates, but what about the good old bonuses and the thirteenth salary? Why is this method of motivation increasingly failing? Experts commented on various aspects of this issue.

So, the CEO of the company VENTRA Marina Simonova notes that retaining employees solely by increasing wages is obviously a losing option, moreover, the most costly for the company. “Increasing wages gives a temporary effect, and then stops working altogether. Standard benefits for all employees are also not a solution: the employee does not feel that the company cares about him,” the specialist is sure.

In turn, Oksana Samokhina considers material methods of motivation to be the most reliable and proven way to interest employees: “Frequently used methods of material motivation are premiums, bonuses, benefits, insurance, interest-free loans, fitness programs, foreign language training, various compensation for communication expenses , car, apartment and so on. Monetary remuneration provides a greater guarantee of increased employee performance. However, organizations cannot endlessly appeal only to such methods of motivation for obvious reasons, and then there is a need to move to higher-level needs and use more complex methods of motivation.”

Alena Daragan also believes that material motivation is a powerful tool for personnel management, but it is ineffective in isolation from other methods of reward: “Even employees who are confident that they are focused only on making money will not be able to last long in a company that does not use alternative methods of non-material motivation. In addition, in areas such as IT, where we observe an overheated labor market in terms of wages, material motivation ceases to play a decisive role and exclusively non-material ways of rewarding employees come to the fore.”

Introduce a flexible benefit system

Theory is great, but how does a motivation system that combines the material and non-material interests of employees work in practice? Speaking about the experience of her company, Marina Simonova also notes that the monetary factor of motivation is effective, but insufficient. “In addition to salary, many employers offer their employees a social package. At the same time, the vast majority offer fixed benefit packages: the employee cannot choose the benefits options, but has the right to refuse those that he does not plan to use. Typically, the company will not reimburse the employee for the cost of unused benefits and will not offer any replacement. That is, if an employee refuses the benefit in the form of voluntary health insurance, which employers most often offer, then he is left without any additional benefits. – says Marina Simonova. - The inflexibility of this scheme forced the management of our company to refuse to use it. The choice was made in favor of a benefit system based on the cafeteria or cafeteria plan principle.”

According to the expert, the main difference between this system and the usual corporate schemes is that the employee receives a completely customized package of benefits and chooses those offers in which he is really interested, which means that the company’s money is not wasted.

“How does this scheme work? For each category of employees, the company allocates a certain budget - in the form of money or conditional points. A special “menu” describes various options for benefits with all possible parameters and conditions, and also indicates their cost, says Marina Simonova. − At the same time, each category of employees has a certain budget, within which they select the benefits they need from an improvised “menu”. Employees have a choice of the following benefits: medical care; life and health insurance; gym membership; compensation for transportation costs; compensation for mobile communications; training financing; food compensation and others.”

According to the specialist, such a flexible benefit system gives excellent results, while the company spends the same amount of money as before. “However, for medium and large organizations with more than a hundred employees, administering such a benefit program becomes a real challenge. Our company uses its own portal solution for this, which allows us to online manage the process of employee subscription to available benefit packages and document flow with service providers (insurance companies, gyms, etc.), sums up Marina Smirnova.

Make the office a second home for employees

The motivation scheme described above assumes the presence of an appropriate budget. But what if it is limited, but you still need to motivate your staff? According to Marina Simonova, in this case the company’s task is to create the most comfortable conditions for the employee. “He should “merge” with the corporate culture of the company so much that he will not have the thought of changing his job. Give employees more freedom. Eliminate strict limits on the start and end of the working day: let the working day begin at a convenient time from a given period, for example, from 08-00 to 12-00. A person who gets enough sleep and doesn’t sit in morning traffic jams is able to work with much greater efficiency than someone who is forced to get up at midnight, not have breakfast and arrive at the required nine in the morning. – the expert recommends. − If the employee’s position and responsibilities allow it, give him the opportunity to work from home. There will be no limit to the happiness of employees, and for the company, the home office mode also provides an additional benefit by reducing office and administrative costs. Customized benefits and a comfortable corporate culture are what will help the employee and the company be together for a long time.”

Alena Daragan also notes the trend of blurring the boundaries between office and home as one of the key ones: “We can highlight a general trend in the development of non-material motivation: the transformation of an employee’s place of work into a kind of “closed system”, a microenvironment that covers all areas of his life - recreation, hobbies, family, finances, health and so on, helps him to realize himself, to be socially active - and all this in the closest possible contact with work. It is likely that in the future the best specialists on the labor market will be available to those companies that offer the candidate maximum freedom of action in all areas of life “on the job.”

Photos from the announcement:pixabay.com

The rewards of each employee are a consequence of the organization’s assessment of his work during the month (year), how successfully he completed the assigned tasks and coped with his responsibilities. Depending on these factors, a distinction is made between employees and the degree of remuneration is determined.

The reward system in an organization is divided into three main elements (Figure 10).

Figure 10 - Reward system in the organization 28, p. 79

Let's take a closer look at this method of remuneration as benefits. Benefits are additional benefits and compensation that employees receive indirectly and not in the form of direct cash payments. Benefits not related to the quantity and quality of labor, remuneration that employees receive for working in a given organization or enterprise.

The most appropriate compensation system is not easy to develop, but general rules that meet trends exist in both the Russian and foreign markets. Despite this, questions regarding additional benefits arise and are resolved depending on the situation.

Reasons why it is advisable for companies to promote a benefit system:

Improving the employee life system;

A beneficial psychological effect on employees, due to the fact that the value of each employee is emphasized, his self-esteem increases;

Creating a favorable image of the company;

With the help of benefits, the corporate values ​​of the organization are promoted, for example, memberships to the gym or swimming pool are used to promote a healthy lifestyle.

Figure 11 shows the most popular types of benefits.

Figure 11 - Popular types of benefits

Also no less important benefits remain:

Health insurance,

Payment for vacations (payment for vouchers, payment at the place of residence at the place of vacation, payment of additional amounts for vacations),

Well-equipped workplaces,

Training at company expense,

Payment of housing for non-resident employees,

Organization of corporate events,

Free Internet access,

Purchasing business suits,

Purchasing a company's products or services at a discount.

Additional benefits received by the employee improve the quality of work and increase their well-being.

Benefits can be divided into two blocks:

Mandatory benefits are determined in accordance with labor legislation (payment of annual leave, compulsory medical insurance, payment of sick leave, contributions to the pension fund).

Voluntary benefits - determined by the employer (free lunches, payment of travel expenses, payment of mobile communications, birth of a child, loss of property, death of a 1st circle relative, marriage and others)

The benefits system for employees in Russia began about 10 years ago. According to research by many managers, analysts, and experts, for a long time people only thought about changing their workplace, about something more profitable. Is it really possible to work in a team where the staff only lives with dreams of a better life? Such employees cannot work with full dedication.

The goals of employers directly depend on the company's strategy and mainly include: attracting highly qualified personnel, creating a favorable public opinion, stimulating labor, and also increasing the well-being of employees.

Experience shows that organizations with the most developed social policy are more effective and successful in the market.

It's great to have benefits at work, but not all companies can afford them. This is due to the fact that providing such benefits is a very costly undertaking for the company; it is cheaper to leave a monetary reward or offer your own goods or services as benefits. Also, middle-aged and older employees, remembering the Soviet temporary system of benefits and constant lack of money, do not have much confidence in such rewards.

For the effective formation of benefits, the main thing is to take into account the values ​​of employees; social and age differences are of no small importance. For example, employees under 30 will be more interested in discounts for the gym, while those over 50 are more interested in health insurance. It is possible to give the right of choice to the employees themselves, but this is quite an expensive exercise and may increase the needs of people.

The system of benefits (benefits, privileges) is used, perhaps, in every organization and is an integral part of any motivation system. Let's look at examples of benefit systems used in various organizations.

According to the hierarchical structure of the company, one set of benefits is for employees and workers, another for middle managers and a broader one for top managers. An example of such a formation of benefits is presented in Table. 1.

Table 1 - Benefit system in a manufacturing company

Large state corporations are also increasingly using a system of benefits. For example, the system of benefits at Aeroflot OJSC is as follows.

1. Stimulation with free time.

2. Labor and organizational incentives.

3. Incentives that regulate employee behavior based on the expression of social recognition.

4. Payment of transportation costs or servicing with your own transport.

5. Savings funds.

6. Catering.

7. Scholarship programs.

8. Housing construction program.

9. Flexible social benefits.

10. Life insurance.

11. Medical insurance.

12. Contributions to a non-state pension fund.

13. Associations for obtaining loans.

In organizations that use a grading system, benefits, as a rule, are differentiated from the qualification level of employees by grade. The higher the grade to which the position belongs, the larger the set (or greater amount) of benefits provided. The table shows the distribution of benefits according to grades in one of the Russian companies.

Table 2 - Distribution of benefits by grade

Individual organizations create a social package based on the cafeteria principle.

Table 3 - Cafeteria package

The basic idea is to allow the employee to create his own benefit plan, keeping in mind two restrictions. First, the entrepreneur must carefully determine the limits of the total cost. This limit determines how much will be spent on benefits for each employee. Second, every benefit plan must include certain mandatory items. Examples include Social Security, Workers' Compensation, and Unemployment Insurance.

Based on these two restrictions, employees can choose from all available benefits. Thus, a young married employee may choose to forego some company plans in favor of life and dental insurance plans, while an older employee may prefer pension-enhancing plans. The list of possible alternatives could probably include a large number of benefits: vacations, pension plans, educational services, etc.

Building such individual plans can be both beneficial and disadvantageous. The main problem is that using a cafeteria plan can incur significant administrative costs. Each employee's benefits must be carefully assessed and updated periodically.

Some benefits may be replaced by the issuance of monetary compensation. For example, the provision of a benefit such as payment for public transport passes is replaced by the payment of a certain amount in cash. In this case, employees can use it at their own discretion: some - for public transport, others - for gasoline, others - for taxis, etc.

Many firms are introducing bonuses for employee contributions to developing customer service standards. One such scheme was recently introduced by Aetna Life & Casueli Companies. It had two components. Basic payments were based on the overall performance of employees, while special payments were awarded for outstanding contributions to customer service. Customer service standards were previously introduced, which included the following provisions: employees were required to demonstrate knowledge of customers and their needs, interest and attention to their problems and opinions; employees had to be available to customers. Annual bonuses were paid at the rate of 2% of the annual salary.

Progressive firms today make extensive use of non-fixed wages, financial and various alternative incentives. The purpose of these activities is to encourage quality and productivity through the use of performance-based rewards as part of their employee loyalty programs. In this sense, Federal Express is a good example.

Federal Express has a number of performance-based pay programs.

Bonus program. All employees receive a performance bonus. Many hourly employees receive a bonus not as an automatic salary increase, but for their personal merits. Evaluation of company employees is a tool for determining labor results or serves to confirm information about an employee’s development or to recommend a salary increase. This is why it is so important that assessments are fair and accurate.

Supplement over salary. Many hourly workers receive a gross bonus when they reach the top of their salary range. An over-salary bonus is paid if an employee receives maximum pay for a specified period of time (usually six months) and only if he or she performs above average.

"Star/Superstar" program. Employees with outstanding performance evaluations may receive the title of "star" or "superstar" and receive increased gross compensation. "Stars" may be 10% of the performers in each division, while "superstars" may be only 1% of the employees in each division.

Profit sharing. Profits are divided based on the overall performance of the corporation. The board of directors annually sets an amount to be divided among employees based on the corporation's pre-tax profits. Payments under this scheme can be in the form of cash, shares, or some combination of the latter two. Payments are made every six months in June and December. The scheme is integrated with pension and savings schemes to provide a competitive retirement plan.

Programs for managers and professionals. These are personal schemes of managers and professionals. They are designed to provide managers and other professionals with the opportunity to receive financial incentives when they achieve corporate, departmental, or divisional goals. The financial incentive program for managers is mainly aimed at rewarding the planned level of profit. Bonuses for managers and professionals are directly related to personal achievements in people, service or profitability. Thus, for a regional sales manager, a human goal may be leadership, expressed in obtaining additional leadership points when conducting a feedback survey.

The Bravo Zulu Award (BravoZulu is a nautical signal meaning “well done!”) was introduced to give managers the opportunity to immediately reward employees for outstanding achievements beyond their normal job duties. These awards can be in cash (a check) or some other form (a free lunch or theater ticket). During the year, corporation managers rewarded employees with bonuses about 150 thousand times, the average bonus was $50.

Golden Falcon Award. This award is given to employees for excellent customer service. Candidates for this award are usually nominated based on letters from clients who state that the employee has conducted himself in the most commendable manner. Candidates are reviewed by the Golden Falcon Committee and the final selection is made by the General Director. The list of winners is announced monthly on domestic television or in the newspaper. As a reward, they receive a Golden Falcon pin and Federal Express shares.

Table 4 - Benefit system used in Bellsouth Corporation

With the exception of the bonus program, all other performance-based pay programs are one-time payments. They do not depend on salaries and allow the company to reward its employees without constantly increasing the fixed wage fund. This flexibility reflects rapidly changing market conditions and allows FedEx to respond to deteriorating economic conditions while maintaining a full employment strategy.

In conclusion, it should be noted that any organization can use the components of a system of benefits and incentives, most often in the form of a social package. In this case, you should conduct a survey among employees and identify the needs that they would like to satisfy using this system. Assess their cost and create a social package from which each employee could choose the benefits necessary for him for a certain amount, the size of which is established by the regulations on such a package. Expanding the benefits package (albeit limited to the extent that employees are satisfied) will encourage more staff to be incentivized.

Thus, labor motivation is an internal motivation for a certain work behavior, limited by the mental and physical abilities of people. The purpose of motivation is to achieve the goals of the organization and (or) the goals of the employee in the process of work. The basis of labor motivation is motives and incentives, both related and not related to the labor process.

A number of domestic and foreign researchers consider modern theories of motivation, dividing them into two groups: substantive and procedural. 24, p.67

Process theories of motivation not only define needs, but are also a function of a person's perceptions and expectations associated with a given situation and the possible consequences of the chosen type of behavior.

Compensation- (from Latin compesatio - compensation, reward)

To the concept compensation the same applies:

Compensation for damage;

Reward for unused right;

Method of repaying obligations by offsetting counterclaims of the debtor and creditor;

Issuance of cash and one-time benefits to employees for unused vacation, price increases, upon dismissal, reinstatement, upon transfer to another job, etc.

Reward system or compensation package , which are used in the organization, consists of three elements - basic salary (basic salary), additional charges (incentive payments, bonuses, bonuses) and social benefits or benefits (benefits).
Basic salary and there is guaranteed compensation to the employee for his work in the organization or for the performance of duties in a given position, in a given workplace. It consists of the base salary (payment for time worked) and allowances (additional payments).
An employee's official salary is determined by the rank of the position held or the assigned tariff category, and allowances (additional payments) are introduced to take into account the individual characteristics of the employee.

Supplements can be: for knowledge of a foreign language, for work experience (length of service), for operational efficiency, for managing employees, etc.. Typically, bonuses are calculated as a percentage of the base salary. Supplements can be permanent or temporary (for 3-6 months).

Bonuses or incentive payments usually associated with additional remuneration for the employee’s performance. These include: commission payments, bonuses for fulfilling the plan, profit sharing, etc.. - everything that constitutes the variable part of the monetary remuneration for labor and is used to account for the performance of employees, linking the level of monetary remuneration with the overall performance of the company, division or the employee himself.

(The variable part can be piecework, i.e., for each unit of product manufactured, the employee receives a fixed remuneration. A special type of piecework payment is the sales incentive system , or commissions. This system is used to manage sales and stimulate sales personnel. With a commission incentive system, a direct relationship between the amount of remuneration and sales volumes is established.)

The variable part of the monetary remuneration can be determined as a percentage of the base salary and vary depending on the performance of the company.

The ratio of the constant and variable parts of monetary remuneration may be different and is determined by the dependence of the result obtained on the labor efforts of the employee himself. For example, for sales managers the variable (commission part) of monetary remuneration can be 60, 70, or 80 percent of the total monetary remuneration, and for a secretary the variable part should not be more than 10 - 15 percent. This is based on the fact that the structure and content of the compensation package and the principles of material compensation for different categories of personnel will be different, because the contribution of different categories to the final product is also different and the differences are reflected in the remuneration system.

Benefits or social allowances are considered as remunerations that are not related to the quantity and quality of labor, remunerations that employees receive for the fact of working in a given organization or at a given enterprise. In addition to direct monetary compensation, there are various forms of indirect material compensation to employees, which are called social benefits, or the company's social package. Benefits include: medical insurance, vacation pay, compensation for travel expenses, provision of interest-free loans and loans to employees, membership in sports clubs, payment for meals, payment of expenses for using a mobile phone, training, reimbursement of expenses for utilities, maintenance of children in preschool institutions and other social benefits.

Social benefits, representing additional benefits received by employees from the enterprise, increase their well-being and quality of working life. Some social benefits are provided by law and are mandatory for all enterprises (paid basic and additional leaves, payment for temporary disability, benefits for young employees and women, etc.). Part of the social package is provided by enterprises on the basis of voluntarily assumed obligations towards employees.
The goals pursued by the employer, providing in addition to the basic monetary remuneration also a certain set of social benefits and payments, are quite diverse and depend on the company’s strategy, for example: attracting and retaining highly professional personnel, indirect and direct stimulation of productive work, creating a favorable public opinion about the company ( PR goals), increasing the real well-being of its own employees.

Used by companies forms of encouragement can be divided into several groups.

First: valuable gifts are the most common, then: moral rewards (gratitude, certificates of honor, etc.), as well as: time off and additional vacations.

Second group- less common: here is the inclusion of the employee’s name in the history of the company, and hanging a portrait of the most distinguished on the honor board, and awarding memorable badges.

TO third group We can include various forms of incentives that are used quite rarely: offering employees participation in profits, selling shares to employees, etc. The range of forms of incentives is wide, as it depends only on the imagination of managers.

Thus, the main trend in the development of compensation packages for organizations is a relative increase in social benefits and payments in the general remuneration system. The developed social policy of the enterprise indicates that the strategic goals of the organization include not only maximizing business profits, but also the social security of the employee and the development of his personality. And, as experience shows, such organizations turn out to be the most effective and market successful.

Sources:

Free encyclopedia "Wikipedia": Wikipedia.org

Electronic magazine Onby.ru: E. Morgunov: “Models and methods of personnel management.”