Step 3: Identifying Demotivating Factors
Posted: Sat Jan 18, 2025 8:56 am
It is necessary to take into account the factors that can reduce staff motivation. These may include interpersonal conflicts, lack of mutual respect, mistrust of management, or lack of understanding of the reasons for the changes being made. It is necessary to work on improving the corporate culture and internal environment to eliminate these demotivating factors.
Stage 4: Selection of tools (methods) for the formation of a remuneration system
At this stage, it is necessary to select the appropriate assessment tools and methods for calculating wages. This can be a point-factor method, a task-based regulation program, a balanced scorecard, or other methods that will help to form a fair and transparent structure of the remuneration system.
Stage 5: Developing goals, conducting their decomposition
To achieve strategic alignment, conduct band data package a planning session that takes into account the time frame and hierarchical structure of the organization. The company's goals should be divided into smaller, more manageable tasks, making them easier to understand and implement at all levels.
Step 6: Designing a Reward System
Use the point-factor method to evaluate all positions in the company and adjust the salary system based on this analysis. Also define variable components of salary aimed at achieving KPIs and company objectives. It is important to clearly define the measurement criteria and the bonus system.
Step 7: Developing a benefits system
The needs of employees and managers should be analyzed to select an appropriate system of benefits. If it is decided to move to their monetization, it is necessary to carefully assess all the consequences of this transition.
Stage 8: Development of a system of material non-monetary motivation
Conduct a study of current non-material motivation methods used by managers and employee satisfaction levels. Assess the quality of feedback, the degree of trust and delegation of authority, and the impact of management style on morale. As a result, develop training programs for managers aimed at strengthening non-material motivation skills.
Step 9: Conduct a test run
Test run the latest pay and incentive system by analyzing changes in employee salaries. Compare their incomes with market standards and make appropriate changes. It is desirable that the salaries of employees who have achieved 100% of their goals be increased by at least 15%.
This will stimulate the transition to a system of remuneration based on final results. The increase in the salaries of effective employees should be compensated by a decrease in the salaries of ineffective employees through the reassignment of the bonus fund.
Implementation of a reward system
Source: shutterstock.com
Step 10: Discussing the new reward system
Present the project to top managers and discuss its contents. Make any necessary adjustments based on the discussions.
Step 11: Implementation
Provide all employees (with signatures) with information about the new rules of the wage system. The employer is obliged to notify the staff in writing about the upcoming changes in working conditions at least two months in advance. During this period, do not stop paying wages according to the old system, providing indicators according to the new system. This gives employees the ability to evaluate changes in their own wages, draw conclusions and, if necessary, change their actions or approach to work. The first person of the wage project should be ready for expert support from managers during the implementation.
Step 12: Implementation of the pilot project
If your holding has several enterprises, implement a pilot project reward system at one of them. Check the results, take into account the mistakes and improve the system before implementing it at other enterprises.
Documentation such as a collective agreement, a regulation on the system of payment and incentives for personnel, internal regulations, a program for training personnel to implement changes, and questionnaires for assessing employee satisfaction and their needs will serve as important tools for implementing the reward system.
Stage 4: Selection of tools (methods) for the formation of a remuneration system
At this stage, it is necessary to select the appropriate assessment tools and methods for calculating wages. This can be a point-factor method, a task-based regulation program, a balanced scorecard, or other methods that will help to form a fair and transparent structure of the remuneration system.
Stage 5: Developing goals, conducting their decomposition
To achieve strategic alignment, conduct band data package a planning session that takes into account the time frame and hierarchical structure of the organization. The company's goals should be divided into smaller, more manageable tasks, making them easier to understand and implement at all levels.
Step 6: Designing a Reward System
Use the point-factor method to evaluate all positions in the company and adjust the salary system based on this analysis. Also define variable components of salary aimed at achieving KPIs and company objectives. It is important to clearly define the measurement criteria and the bonus system.
Step 7: Developing a benefits system
The needs of employees and managers should be analyzed to select an appropriate system of benefits. If it is decided to move to their monetization, it is necessary to carefully assess all the consequences of this transition.
Stage 8: Development of a system of material non-monetary motivation
Conduct a study of current non-material motivation methods used by managers and employee satisfaction levels. Assess the quality of feedback, the degree of trust and delegation of authority, and the impact of management style on morale. As a result, develop training programs for managers aimed at strengthening non-material motivation skills.
Step 9: Conduct a test run
Test run the latest pay and incentive system by analyzing changes in employee salaries. Compare their incomes with market standards and make appropriate changes. It is desirable that the salaries of employees who have achieved 100% of their goals be increased by at least 15%.
This will stimulate the transition to a system of remuneration based on final results. The increase in the salaries of effective employees should be compensated by a decrease in the salaries of ineffective employees through the reassignment of the bonus fund.
Implementation of a reward system
Source: shutterstock.com
Step 10: Discussing the new reward system
Present the project to top managers and discuss its contents. Make any necessary adjustments based on the discussions.
Step 11: Implementation
Provide all employees (with signatures) with information about the new rules of the wage system. The employer is obliged to notify the staff in writing about the upcoming changes in working conditions at least two months in advance. During this period, do not stop paying wages according to the old system, providing indicators according to the new system. This gives employees the ability to evaluate changes in their own wages, draw conclusions and, if necessary, change their actions or approach to work. The first person of the wage project should be ready for expert support from managers during the implementation.
Step 12: Implementation of the pilot project
If your holding has several enterprises, implement a pilot project reward system at one of them. Check the results, take into account the mistakes and improve the system before implementing it at other enterprises.
Documentation such as a collective agreement, a regulation on the system of payment and incentives for personnel, internal regulations, a program for training personnel to implement changes, and questionnaires for assessing employee satisfaction and their needs will serve as important tools for implementing the reward system.