What Is Incentive Pay?

Bonus refers to the remuneration paid for excess labor provided by workers, and is a supplementary form of distribution according to work. In general, bonuses can be divided into two categories: one is the reward given to workers by providing excess labor, which directly increases social wealth (such as increasing production, saving, etc.); the other is because workers provide excess labor to increase society Wealth creates rewards (such as technological innovation). According to the situation of excess labor, bonuses can be divided into two types: comprehensive awards and single awards. The comprehensive award is a comprehensively assessed bonus based on the contributions of various aspects of the laborer; the single award is a bonus assessed according to the excellent performance of the laborer in one aspect. ^[1]

[jing jn]

Explanation: refers to the excess paid to employees

Bonus adjustment method

1. Incentive adjustments. The main way of rewarding adjustment is to reward merit.

Personal bonus = total corporate bonus * personal due factor

2. Adjustment of living index. From the perspective of the enterprise, when the performance created by employees and the economic benefits of the enterprise remain unchanged or even decline, it is nonsense to increase wages, at least for no reason. However, the nature of the salary increase includes the requirement to maintain the basic living standards of employees. Therefore, when the living index increases, companies will also have to increase their wages in order to avoid employees' actual income due to inflation. The intangible reduction in employment is, of course, the continuation of this situation will eventually lead to employers adopting attrition policies.

3. Adjustment of working age wages. A considerable number of companies believe that the increase in the number of years of service in the company not only reflects the company's recognition of employees, but also means the increase of employees' contribution to the company, as well as the accumulation of their work experience, skill and ability. Therefore, there are many aspects of salary or seniority in wages.

4. Special adjustments. For those talents who have made special contributions to the enterprise or are scarce in the market, the enterprise should adopt special wage and bonus policies. Of course, such investigations should be determined entirely based on the actual situation and requirements of the enterprise.

Bonus adjustment plan

1. According to the staff classification and classification regulations, employees are classified according to the results of job evaluation, ability evaluation or performance evaluation;

2. Determine the post salary, ability salary and bonus of each employee according to your new salary bonus plan;

3. If there is a reduction in the salary level of an employee, the original salary level is higher than the adjusted salary plan. According to the relevant provisions in the transitional measures, the original salary level is generally maintained in accordance with the principle of maintaining the salary level, but The salary level is determined according to the adjusted plan;

4. If there is no reduction in the employee's salary level, but the adjusted salary level is lower than the original, the reason should be analyzed in order to readjust the plan;

5. Arrange the problems in the calculation for reference by superiors in order to improve the adjustment plan.