Reward for work: types and concept of encouragement

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Rewarding employees for their work and effective performance of functions is an excellent tool to help develop a conscious attitude to work, increase the effectiveness of production processes and ensure discipline in the team.

Meaning of incentive measures

For each employee, the most important reward for his work is a decent and timely paid salary. However, material and moral incentives for success in work are considered no less significant. Their proper use allows you to ensure labor discipline and maintain it at the proper level. These techniques have a powerful stimulating effect, pushing the employees of the organization to further production success, and also become a positive example for the rest of the team.

Reward for work is often used in cases of exemplary behavior (labor merit). The subject can be both individual employees and teams.

Reward measures: definition and essence

Reward is a form of positive evaluationbehavior or results of work of the worker by the employer, labor collective or the state. Incentive measures are classified based on who receives them and for what merit.

In fact, rewards for labor achievements can be awards, benefits, benefits, or public displays of gratitude and honor. As a result of the application of such measures, the prestige of an employee or team increases. This is the realization of the need for recognition, which is inherent in every person. The awarded employee is grateful to the management, and also realizes his value to the team and the enterprise.

Reward for work inspires people to conscientiously perform their duties, charges them with the desire to reach new heights in the profession, to be more useful to the company.

Motivated employees are extremely important for a company. Due to their strong, bright motives, they work more efficiently and efficiently, actively and with full dedication of strength overcome the difficulties and problems that arise, and achieve their goals faster.

Types of incentives for work: material rewards

Among the most effective incentives are tangible and intangible.

Material incentives include a system of measures aimed at ensuring the financial interest of company employees in certain labor results.

It could be:

• Payment of bonus.
• Presenting a valuable gift.

The bonus is awarded to employees, in addition to salary, for what they have achieveda concrete result in labor.

Bonus as a reward for work is used according to the system adopted at the enterprise. The conditions for receiving and the amount of payments are indicated in the collective or labor contract, agreement, local regulations of the organization.

The bonus system enables the employee to receive a larger amount of money than the one provided by the salary. However, he will have to work harder, because the bonus is paid for the achievement of indicators above the average.

Features of using the bonus system

Bonus is the most common material reward for success in work. It acts as a powerful incentive for company employees and often has a positive effect on productivity and labor efficiency.

For an employer, the development of a bonus system primarily means the ability to attract and retain highly qualified specialists.

Each company has its own system of accrual and payment of bonuses that meets the individual characteristics of economic activity. Its development and installation is carried out by the relevant department of the organization.

Bonuses are carried out in accordance with the following principles:

• The bonus must be assigned to a specific employee for a certain personal contribution to the company.
• Incentive for work (bonus) should not be included in wages. It is important that an employee of the organization knows how to distinguish between these payments.
• Determination of the amount of incentivepayments must have an economic justification.
• Bonuses should be paid for the fulfillment of certain conditions or the achievement of specific indicators.

Terms and types of bonuses

There are bonuses that can be attributed to the payment system, and those that are not.

The first ones are defined in the provision on bonuses, collective or labor agreement or other local regulatory act of the company. This type of incentive is paid to employees who have achieved a result predetermined by bonus indicators. The very fact of achieving these indicators en titles the employee to receive an award, otherwise (the result is not received) there is no right to a bonus.

Types of bonus indicators:

1. Quantitative (the production plan was met and overfulfilled, a technically justified production rate was achieved, a progressive production rate was mastered, and others).
2. Quality (reduced labor costs, saved materials, raw materials or fuel, increased the proportion of top quality products, achieved a high level of customer service).

In addition to indicators, the company's management may set several conditions (additional requirements), the fulfillment of which is necessary for the payment of bonuses. In case of their violation, the employee may not be awarded a bonus or its size may be reduced.

The second type of bonuses, not related to the wage system, is paid as a one-time payment. At the same time, the procedure for rewarding work consists in the generalassessment of the work of a particular employee of the enterprise, and not in the analysis of the results achieved. That is, the basis for accruing such a bonus is the unilateral decision of the employer.

In addition to the above classification, there is also a division of premiums into several groups:

• Periodic (monthly, quarterly, annual).
• One-time accruals for achievements related to the production process (for high labor productivity, for the successful completion of urgent or important tasks, for conscientious performance of labor duties over the years).
• Timed to coincide with any events not related to the production process (holidays, anniversaries of employees or companies, retirement of an employee).

Intangible incentives for employees

Along with material types of rewards, many enterprises actively use the moral encouragement of labor. This type of stimulation includes various measures of public approval or censure aimed at increasing or decreasing the prestige of a particular employee.

For such activities to be effective, the leader must comply with the following conditions:

• To inform employees about the provisions and statuses of moral incentives.
• Take care of the wide use of various forms of such incentives, as this contributes to the development of creative initiative in the team.
• Combine methods of moral encouragement with material incentives, provide for their interaction and continuous improvement withtaking into account new tasks, changes in content, organization or working conditions.
• Make sure that information is widely disseminated within the team at every occasion of moral encouragement.
• Establish a festive atmosphere in which awards and acknowledgments will be presented.

• Ensure timeliness of moral encouragement. It must be done immediately after reaching.
• Develop improved types of incentives, as well as provide for the establishment of a strict moral responsibility of each employee for the work in which he is engaged.
• Perform performance analysis of rewards.
• Make sure that moral incentives for work are applied systematically and the rules for maintaining relevant records in employee work books are observed.

Procedure for applying incentives and awards

It should be noted that the use of material incentives is justified when employees of the enterprise feel the need to meet basic needs (forced to eat unhe althy food, live in a room with a minimum level of comfort, not sure about “tomorrow”).

If these needs are met, they seek other incentives other than material ones. Such workers become interested in moral types of reward for work, as they are able to activate powerful internal incentives for further activity.

Employer's interest in consciousand motivated employees is obvious: the results of their work are so improved that it more than justifies the funds spent on their stimulation.

An extremely effective way to increase the interest of company employees in the labor process and ensure their loy alty to this organization is a combined system that combines bonus pay and non-material incentives. This is possible when replacing part of the salary with a social package or providing additional benefits (corporate gym, swimming pool, language courses).

What determines the effectiveness of non-material incentives

There are such types of non-material incentives that can significantly increase the "fighting spirit" of employees and provide them with a powerful motivational charge:

• Corporate training system. This is true for ambitious beginners, since the new, more complex tasks that the leader sets for him are presented from the standpoint of gaining new experience and replenishing the list of personal achievements.
• Giving merit to the public: commendations, certificates, honor rolls, articles about employees in the media, planting a table flag.

Reward as an extension of personal space (allocation of an office, a large table).

• A new degree of trust manifested in the invitation to meetings, seminars, conferences and negotiations.
• Additional comfort (providing a more expensive computer,stationery, installation of air conditioning in the department).
• Expansion of the list of benefits. Many employers enter into agreements with partners that provide for the exchange of services and goods. In this case, they cost all participants quite cheaply.

This is just a small list of possible ways to motivate. It can be supplemented by a manager who has studied the needs and desires of his subordinates.

How the reward system should be applied

Any award, bonus or non-pecuniary incentive must be applied after each labor achievement of the employee to be awarded.

The leader should not allow the cancellation or delay of the promotion. Nor should it be reduced in size or scale. Often, employees, being aware of the motivation system in place in the company, make sure that high labor discipline is maintained. Incentives that are delayed, cut or canceled can lead to loss of desire to work, frustration and, as a result, a decrease in the quality and quantity of results.

An overly complex reward system that provides for the achievement of inflated performance has the same effect. The amount of incentives for work and the procedure for their application should be calculated not only for strong and average employees. Under such conditions, workers with weaker abilities lose their desire to work, feeling like representatives of the lower social stratum. The solution could be the development of a differentiated reward system that provides for various types and types of awards.rewards.

Conclusion

The criterion for a truly effective promotion can be considered its significance and universality. Thus, each of the employees clearly represents the benefits and benefits of conscientious work.

Perhaps the main condition for effective financial incentives is its size. The minimum bonus, which does not become a means of increasing the prestige of the employee, is not regarded by him as a worthy reward for additional efforts. The accrual and payment of a bonus allows employees to be motivated for future achievements only when receiving it significantly increases their income level.

With this approach, all members of the team understand that if you work well, you can earn decent money, and if you fulfill the required minimum, then the income will be appropriate.