Evaluation of the effectiveness of personnel incentives involves the use of a formula that can be used to calculate this indicator. It includes the value of the salary level, bonuses and working conditions:
Incentive Index = (Wage Value * Wage Probability - Job Cost Value) * 100
To calculate the value of wages, take their ratio to the market income indicators for a specific position. For example, wages can be estimated at 5 points if they correspond to what is listed on the market. If, for example, an employee receives 100 thousand rubles, and the maximum on the market is 80 thousand, then wages will be estimated at 6 points. If an employee is paid twice as much as the market indicator, then the assessment is 8. The same principle applies in the opposite direction: the wage is less than on the market, which means the points will decrease.
The probability coefficient how can our overseas chinese in uk data help your business that the salary will be paid is designated either 0 or 1. If the probability is 100%, then one is put, when the transfers occur only in half of the cases or there are doubts about their payment, then 0.5 points should be put. This occurs when bonuses depend on inconstant factors, so it is impossible to know for sure whether they will be paid or not. In situations where the staff does not know what salary they will receive this month and whether there will be any at all, because the management often deceives subordinates, the coefficient is 0.
The significance of expenses is influenced by three criteria: physical costs (fatigue in the office, travel to and from work), psychological costs (relationships within the team), and working conditions.
An ordinary organization, where ordinary people work, there is a traditional office and the road to it takes an hour, gets 5 points. If employees do hard physical work every day, experience psychological stress and have terrible working conditions, then 10 points are given.
This coefficient may not exceed 1000 points, and the average value is 200–300 points.
Activation Index
Activation Index = Infection Rate * 50
The degree of infection is related to the performance of business tasks:
In the team, everyone supports and encourages each other: “You can do it, we will be there to help you.” That’s 10 points.
"Don't get so hung up on it, it's all fine." Infection 5 points.
"Your hopes are not justified, the project is unsuccessful. In addition, the company will probably close soon." In this case, 1 or 0 points are given.
The activation indicator value cannot be higher than 500 and lower than 0.
To calculate this index, use the values obtained during the analysis of other indicators:
Motivation index = self-motivation index + stimulation index
+ activation index
The highest value of the motivation index can be 2500 points. If you get 1000 points when calculating, then this means that you are using only half of the capacity.
It is advisable not to let employees undergo this test, because they will most likely answer dishonestly. It is better for the manager to do the calculations himself. He will be able to evaluate the staff efficiency, find out why it is below the required level and decide what can be done to improve the situation.
Pay special attention to the self-motivation indicator, because you don’t need to make monetary investments in the parameters that form its basis. It is influenced by the leadership skills of the manager: increase the value of work, introduce variety that will help subordinates to be closer to their work activity, explain why it is necessary to do something, and how it will affect the company. Allow employees to become more free and autonomous. If you can increase the self-motivation indicator, then you will not have to spend money to increase interest through income, because it is not always possible to make wages higher than on the market.
In addition, you will be able to reduce the importance of expenses, improve working conditions, the atmosphere in the team, reduce the likelihood of emotional stress and the level of infection, increasing team spirit.
The main goal of evaluating the effectiveness of personnel and any method is to find out to what extent the employee’s position corresponds to his knowledge and skills, where he needs to improve and whether he will be able to occupy higher positions.
For professional analysis of personnel performance, it is not enough to know only the evaluation methods – it is important to understand which of them to apply in a particular case. It is easy to see the goal and know how to achieve it, but it is difficult to choose the right path.
Author of the article
Dmitry Svistunov
Dmitry Svistunov
Head of SEO and Development
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