Today, the HR departments of many companies are increasingly relying on a reception such as bonuses. This allows you to significantly increase the attractiveness of the enterprise for applicants and employees, and therefore makes it competitive. Another huge plus bonus is that interested employees work more willingly.
The essence of the premium system
According to the definition given by the Labor Code, bonuses are the accrual and payment of additional financial resources to employees of an enterprise in addition to wages. Such a scheme is available to absolutely all organizations, regardless of ownership and type of activity.
The bonus system at budgetary enterprises is determined directly by their management. At the same time, both the type of material incentive and its size can be appointed by the head of the organization. The main condition: the total amount of payments to employees (salaries plus bonuses) must fit into the allocated appropriations.
For non-budget companies, things are a little simpler. Since they are not entitled to financing, they should not report on how much money was spent on salaries. For this reason, such enterprises have a relative freedom of action. At the state level, the minimum wage threshold has been determined, and on its basis the company management appoints salaries, bonuses, allowances and surcharges.
Types of bonuses: features of regular payments
Most often, two types of bonus payments are used. The first of these is remuneration, which provides for the wages accepted at the firm. Bonuses in this case are systematic, that is, premiums are paid regularly (once a year, quarter, six months, month, week). Not all employees are awarded, but some particular circle, for example, economists, sales employees or employees of several departments. In order to withdraw the bonus amount, specific labor indicators and bonus conditions developed by the company are taken into account.
In addition, there is a fixed amount of payments: one official salary, half or a percentage of the amount of wages.
All the nuances that accompany the process of accrual and payment of financial remuneration of the first type contain a provision on bonus payments to employees. This document is approved by the administration and, if necessary, agreed with the union. The regulation imposes an obligation on the organization to issue employees a bonus in a specific amount if they fulfill the agreed conditions.
Read more about first type bonuses
At a more detailed consideration, financial rewards of the described type are divided into two groups:
- Award for achieving the planned goals of the company. Such bonuses are the main incentive for staff to encourage them to complete tasks.
- Promotion of the initiative - reward for the improvement of equipment, accounting system or other aspects of the organization.
This type of bonuses is combined into a special group and applied when the employee has achieved savings in raw materials, materials, any type of energy or helped his company in another way.
One-time bonus is not a system
As the name implies, one-time financial rewards are not paid regularly. The main condition for their receipt is the achievement of specific successes in work or the onset of a significant event, for example, a public holiday, the anniversary of a company, industry, or a specific employee.
The example of employee bonuses in this case is as follows: an employee has been working faithfully for the benefit of the company for ten years. In honor of such an anniversary, the head issues a decree on the issuance of the award to distinguished. That is, the memorial date becomes the basis for the payment of remuneration (this and other similar conditions contain a provision on bonus payments to employees).
Why make up the situation
This document can be attributed to local acts of the organization, that is, each company develops its structure and content independently. The document applies only to employees of a particular enterprise.
A sample provision for employee benefits is presented below.
When compiling it, the administration pays special attention to the economic feasibility of bonus payments. Their main task is to avoid the equalization principle in the distribution of rewards.
Based on the specifics of the process, the production cycle and the periods used for accounting, choose the time for bonuses. These same factors determine whether any site, workshop, unit or the whole company will be encouraged.
Bonuses and bonuses that are considered when calculating bonuses
The salary of some employees of an enterprise may consist not only of one salary. Sometimes people take on additional responsibilities and responsibilities, which, of course, is reflected financially. For others, higher salaries are due due to difficult working conditions or professional achievements.
If the accountant is engaged in the calculation of regular remuneration, it makes sense for him to save the once created sample of the provision on bonus payments to employees as a template. When a company has more than one category of employees who have various types of financial co-payments, there should be several prepared templates.
An additional payment may be added to the employee’s tariff rate when he:
- Combines professions (positions).
- Performs duties of another employee (who is temporarily absent).
- It works in adverse conditions.
- It works at night.
- Has an irregular working day.
- Reached a high professional level (received a class or an academic degree, was awarded for high achievements, carried out important tasks).
A more accurate list of surcharges is compiled for each company individually.
Organization of bonuses: conditions under which rewards are due
So that the issued bonuses really become a motivating factor for employees, they are distributed, accrued and issued in accordance with a previously developed system.
There is nothing worse than an unfair punishment or unreasonable encouragement, since in this case the authority of the leader is undermined, and you can no longer count on the trust of employees.
The conditions and indicators on the basis of which bonuses are awarded are set out in the bonus regulation (the sample proposed above is just one of the possible options).
How to create a premium system
System designers take into account the following factors:
- Are the goals achieved and do they affect labor efficiency?
- Are the indicators for which the bonus will be calculated.
- Are conditions created under which bonuses can be made?
For employees of various services and divisions of the same enterprise, bonus indicators, goals and conditions will be different. For example, technical control employees can only be awarded if specific product quality indicators are achieved. For designers and technologists, remuneration is often assigned for the fact that they develop and implement new equipment, technologies and materials. Accountants earn bonuses by compiling specific reports and performing calculations.
In the event that the result of the work can be estimated using objective indicators (quality, quantity, volume), the amount of remuneration is tied to such data. If the content of the work and its results are more abstract (scientific achievements, research, other creative tasks), then the size of the payments depends on the personal contribution of the specialist to the common cause or is determined by expert assessment.
Which employees receive bonuses
Bonus payments are due only to those employees who are in the state of the company, as well as to people who work under a fixed-term employment contract (hired for a specific task). In the event that the employer enters into a civil law contract with the person, the section on monetary compensation is negotiated separately.
For workers who are not in the state, other conditions apply: the administration may include a bonus item in the collective agreement or discuss the need for additional payments with a trade union representative, the chairman of the labor collective council or another authorized person.
How is the award presentation presented?
When the next period comes to an end (month, quarter, year) or a specific task is completed, accounting staff and department heads begin to distribute bonuses.
First of all, accountants prepare statements on expenses for this period, on the payroll fund, and on how much money will be directed to financial motivation of employees.
Next, the director examines the reporting data received from the units (if any), and deals with the distribution of funds between departments.
The work of deputy supervisors is that they oversee the units entrusted to them (branches, departments, laboratories). At the end of the bonus period, they must make proposals regarding the amount of rewards for the heads of these structural units. At the same time, deputy directors listen to the opinion of their subordinates (department heads) about what bonus should be given to specific employees. Most companies choose to submit proposals in writing.
Completion of the submission procedure
At the next stage, all proposals submitted must be agreed. In conclusion, they are approved by the director of the enterprise, and this becomes the basis for the corresponding order.
The administrations of some companies also prefer to coordinate their actions related to financial incentives for employees with representatives of the labor collective or trade union.
When all conditions are met, the head can issue an order for the organization, which will present the grounds for issuing bonuses and its size for each employee. Regardless of whether the company has adopted a bonus position, an order is still issued.
Separate nuances
If employees of a large company are rewarded, then the list does not list all the names. They are part of a separate document that is prepared by the personnel department. This list is considered an annex to the order.
All financial rewards are necessarily reflected in the personal account of each employee, and also appear in his payroll. This is necessary in order to be able to withdraw the average wage with maximum accuracy.