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Gunther Wolf, a graduate economist and graduate psychologist, is an expert in performance management, success-oriented management and organic growth strategies.

Employee motivation with bonus systems: Employer branding per salary?

Bonus systems are commonly considered an effective way to reward employees because they are performance-related. And they are regarded as motivation no. 1. But lately the criticism of the performance bonuses is getting louder. How can companies achieve a fair salary. Best of HR – Berufebilder.de®

Bonus systems wisely

One of the main points of the critics: bonuses would drive employees to the achievement, instead of intrinsically motivated to work, they would soon however pure chord work deliver. And it is difficult for tasks that require a lot of transfer performance.

But bonus systems can be advantageous for both parties. The transition to such a system should, however, be gradual and well thought-out.

How does performance-based pay help?

Performance remuneration should help to improve services and to strengthen motivation, personal responsibility and leadership skills. This is what it says in the collective agreement for the public service (TVöD).

Also in private Company these four aspects play a key role when deciding on a performance fee. However, because private companies are in competition, there are also efficiency, flexibility, quality, productivity and innovation goals.

Bonus payments can be additional motivator

In addition, the benefit of performance remuneration as a corporate control and management tool is often highlighted - especially when replacing outdated piecework, commission and bonus systems.

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As a result of the changes in the labor market, another aspect has recently come to the fore: highly performance-related pay systems show that performance in this company is not only perceived, but also rewarded. This has a particularly positive effect on the retention of the top performers in the company.

How recruiting benefits from bonus payments

Recruiting also benefits from this: Applicants who are ready to perform primarily send their documents to companies that offer a high performance fee. This method teaches you how to successfully introduce a corresponding remuneration system.

If you are entrusted with this task as an internal project manager, you should be well networked in the company. You should have experience in the field of change management and an affinity for key figures as well as knowledge of personnel management and leadership.

The 4 levels of bonus introduction

For the introduction of performance-related pay systems, a four-stage process has proven to be particularly useful in practice:

  1. Analyze the prerequisites
  2. Designing the benefit payment system
  3. Support rollout and implementation
  4. Check and improve the performance control system

First of all, you are dealing with the human and technical prerequisites for the design of the service fee as a superior. In the concept phase (level 2), you develop the company-specific system for determining the performance fee and prepare the necessary processes and instruments. In stage 3 you ensure the necessary know-how and the acceptance of the workforce. This is because it is up to the managers and their employees to implement the new performance remuneration system in a targeted manner. As project manager, you are responsible for monitoring and monitoring the implementation. The process of continuous modernization of the power charging system is in step 4.

Analyze the prerequisites

I would like to clarify the first step in more detail and explain it step by step. The human, system and technical prerequisites for the design of the power control system are examined and possibly achieved. This includes

  • the determination of the initial position,
  • the information gathering,
  • the analysis and their evaluation
  • as well as a first rough planning of the procedure.

1. Communicate with superiors and employees

In order for you as a superior to master the introduction of the performance fee, you must first of all clarify which successes are expected of you. Since performance management systems can make it much easier to control the company, you will first ask the top decision maker. The following four questions may be useful:

Forward to the future:

  • What are your objectives with the introduction or update of the performance-based pay system?
  • What negative consequences must be avoided?

Focusing on present and past:

  • What are the current problems?
  • What currently positive aspects should not be changed?

If you are planning one-to-one meetings with the managing directors, expect about 45 to 60 minutes per call.

Make sure that you remain the questioner and that the other person gives specific answers and examples. Record the statements and repeat them at the end of the conversation. In this context, ask your interlocutor to prioritize the points.

These questions are known as the four elements of SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats. You derive the key success criteria for the project from the responses from management. If you have had one-on-one interviews, spiegeln Send the result back to the entire management with a request for final approval of the success criteria.

2. Document the process

For your later project and change controlling, document the current status in the success criteria approved by the company management. Determine the appropriate measurement parameters for the project success goals: the key performance indicators (KPI). For your own safety, record their definitions and the associated measuring procedures.

With such a controversial topic as changing the remuneration system, you should put an external remuneration expert or remuneration advisor next to you as a project manager: As an internal worker, you bring in company-specific knowledge and your internal network. The external person complements this with experience and specialist knowledge in the area of ​​performance pay. He will take on tasks that you should not be doing due to your internal interdependencies or that you will find difficult to make progress with as a prophet in your own country. He has to be empathetic and yet powerful in the project management.

The extent to which he can work for you is a question of the budget made available to you. You should hire him at least to check the decisive course settings, i.e. at levels 1 to 3 one to two days each.

3. Focus the goals

After the survey of the company's management, you should organize a focus workshop with the key personnel: personnel managers, controllers, personnel / works councils, managers, and last but not least, members of the target group for which the performance fee is to be applied later. Your main occupation is asking and listening. By means of the SWOT questions you can uncover the intentions, attitudes and perspectives of these persons.

If you mention the core questions in the invitation, the participants are prepared and will bring along some points. Keep track of your tasks and questions, including possible solutions, but move the decision to the 2 concept level.

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