The way you reward people forms the necessary foundation for effective people management. Money is by no means the only motive of people, but too little money is powerfully demotivates. Research shows that physical rewards are much stronger than financial rewards.
1. How to determine the level of reward
To determine how much reward is appropriate, ask what level of employee's reward attracts, holds, and motivates the calibre people you require.
It's tough. :
Employee compensation and recognition, employee incentive compensation, employee compensation program, employee motivation compensation, employee compensation system, how to reward employees
Article body:
The way you reward people forms the necessary foundation for effective people management. Money is by no means the only motive of people, but too little money is powerfully demotivates. Research shows that physical rewards are much stronger than financial rewards.
1. How to determine the level of reward
To determine how much reward is appropriate, ask what level of employee reward attracts, holds, and motivates the calibre people you require? Double the employee one time only for the company If you do something that results in power, a one-time stimulus is the most appropriate.
2. Why did the giving employee add compensation in addition to wages?
The main reason for this is the performance that is comparable to the exceptional results because we want to reward employees. Exceptional productivity is more than just covering extra pay.
-Employee compensation should set the outcome to be noted
-Reward must be related to the specific completion of a specific task
-Recent achievements of expressions that should be encouraged by employees
-Make sure that the employees know that they deserve it.
3. Employee compensation should not be a substitute for a reasonable compensation scheme
This kind of award, in fact, these changes, constant and regular completion of the task, excellent execution, and outstanding correction in conscientiousness, or an enhanced evaluation of the status of employee's reward once The program of encouragement only; therefore, it is clear by the employee as you know where to stand
6. Employee compensation should not reflect the impression that these are changes to basic salary
It needs to be set clear to the employees so that they do not expect more than what they have to receive. It is clear that the extra wages are only for special achievements and what. In general, employee compensation may be in the form of cash incentives or non-cash benefits. It can not be something of real financial value like a personal letter of commendation.
7. Remuneration by volume
If you need to use a monetary type of employee compensation, you will be rewarded based on the results. This means that the employee gets a fixed amount for a certain amount of results. In theory, this maximizes the output that gives the employee the best incentive. In fact, employees tend to put a ceiling on their income in this way. However, the key concept is to achieve an individual by combining management with employee compensation. The rewards must be reasonably large to have value-no one can get the opposite effect and let employees see them as cheap or undervaluing what is accepted for reward employees It is a good goal. Special achievements for this manuscript.
Employee retention: what employee turnover actually costs your company
This is one of the biggest costs of all the different types of organizations, yet it is also one of the most unknown costs. That's the conversion of employees.
Companies regularly record and report expenses such as wages and benefits, workers' compensation insurance, utilities, materials, and space, but I think most companies have more than they can.
How much is it costing?
Several well-regarded studies are inferred recently. ..
It's tough. :
Employee retention, employee turnover, calculating turnover costs,
Article body:
This is one of the biggest costs of all the different types of organizations, yet it is also one of the most unknown costs. That's the conversion of employees.
Companies regularly record and report expenses such as wages and benefits, workers' compensation insurance, utilities, materials, and space, but I think most companies have more than they can.
How much is it costing?
Several well-rated studies have recently estimated the cost of losing employees:
* SHRM, a society for human resource management, estimated that it would cost $ 3,500. 00 All costs-Recruitment, interviews, hiring, training, loss of productivity, and cetera, replacing $ 8.00 per employee per hour considered. The SHRM estimate is the lowest among the 17 nationally respected companies that calculate this cost!
• Other sources provide these estimates: it is 30-50% of beginner level employees, 150% of mid level employees, and specialized, high level employees
* Make quick calculations: There have been some conversions about your organization's work, maybe even supervisors. Estimate their annual average wage and the number of supervisors you lose each year. For example, if their average annual wage is $ 40,000, multiply this. 125% (or 125% of their annual salary, a reasonable cost estimate for supervisors). Contact the instructor for this cost $ 50,000 alternative. If this company loses ten-year supervision, then, $ 50,000 equals $ 500,000 in exchange costs only for supervisors. This is the cost of the bottom line. Top line cost? If the profit margin of the company is 10%, it costs $ 5,000,000 in revenue to replace these ten supervisors.
Are these numbers so incredible?
Here is the actual calculation from an organization with a reputation in my community. This human service organization's HR manager (housing for disabled people, protected workshops, etc.), 30 entry-level people estimated that his organization leaves every quarter average.
This averages out to ten a month. Let's be extra conservative and shave the SHRM estimate (see above) up to $ 3,000. 00 Replace each employee.
This amounts to $ 30,000 or $ 1,000 per month. The cost of employee turnover at every month of 00! Each year, this totals $ 360,000. It's 00
Actual conversion costs are usually much higher than we think-until we estimate them.
You might think "Employee conversion is inevitable, preferred." You are right. Some sales are needed, to replace the limits and poor employees with more productive ones and bring them to people with new ideas and expertise. However, high conversion costs are avoidable and unnecessary.
This requires companies to focus their efforts. The goal is to keep the rated performer while replacing the bad ones
When looking at sales for both types of performers in most corporate groups together. By doing so, they are missing the cost and seriousness of replacing a good performer.
Why not more companies see this as an expensive issue.
This is all about expertise and the cost of the dollar, but for a variety of reasons not seen as a problem. How many of these occur in your organization?
1. There is no process to aggregate costs. One study found that only 44% of the respondents had a process to estimate turnover costs.43% of companies rely on intuition, 13% were completely in process (1)
2. The cost is not reported to top management. One of the best ways to get top management's attention is the axiom of business that is to show them some cost. However, most top executives never get a conversion cost estimate as most companies do not measure them-or,
3. It is an inevitable cost of doing business. Except, it is not! Desirable for some rotation rates and unavoidable ones, the rotation center and top performance are largely avoided. Given that sales are only the usual cost of doing business, it says that the accident is just an inevitable part of being in the construction industry
4. HR problem HR needs to be an important partner in reducing the cost of sales, but this is top management's attention, in addition to human resources efforts to solve it
5. They register less interest because the cost is undervalued. If the cost is underestimated because the organization does not agree or do not know what to measure, the statistics generated may be more concerned than necessary
Which costs do you estimate enough?
A comprehensive program measures the following costs:
Exit cost
Recruitment
interview
Recruitment
direction
It's tough.
Rewards and benefits during training
Productivity decline
Customer complaints
Business loss or loss
Management cost
Lost expertise
Tsutsutsutsu
Human resources, finance, and operations need to be agreed in advance about which cost measures are effective. Then it has to be measured and reported.
6. I'll wait until there is a crisis. I was surprised when the executive-director of an organization said that one of the talented managers knew that he was unhappy, but he still resigned
Prevention is what works best. If you start measuring your conversion costs, you are leaving whether you are keeping your best people so you look very seriously, who knows.
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