Step 6: Setting the Limits and Payout Scale
Posted: Sun Dec 22, 2024 9:04 am
It is necessary to indicate that now the extreme value at which the bonus is impossible will be tracked. For example, if a person has not fulfilled the plan by 75% or more in 35 days, then he is not entitled to a bonus.
It is logical to assume that people with different success rates should have different bonus amounts. You can set payments with a decreasing coefficient (by 0.5) when the plan is fulfilled by 75%. Every 5% of the plan fulfillment, the coefficient will be higher. If a person has worked so hard that he exceeded the bar, then email database indonesia these 5% should be added. The upper bonus level can be set with a coefficient of 1.2 when the plan is fulfilled by 120% or more.
A bonus for a special task can be paid like this: if you do it, you get it; if you don’t do it, you don’t get the money.
Step 7: Setting a Plan
The manager then achieves the target KPI value when his result is designated in a specific quantitative or qualitative achievement, meaning the closure of the plan set in the current period. Naturally, the plan is calculated not simply at the discretion of the management, but in accordance with statistics, available resources, etc.
Most people use the SMART principle.
For example: sales plan – 300,000 rubles. Product A plan – 100,000 rubles. Special task – complete work with 4 new clients, the amount for each of them should not be less than 25,000 rubles.
Of course, plans must be realistically feasible. Managers will not try to achieve what is simply impossible in the current reality. The calculation of KPI for sales managers should be based on real figures that each employee can achieve with hard work.
Step 8: Explaining the principle of KPI operation to colleagues and subordinates
All information about the updated motivation system should be conveyed to employees before the new reporting period begins. After the updated program is launched into production, it is necessary to continue monitoring the process, monitoring the strict adherence of personnel to the intended plan. After the end of the period, it is logical to summarize the results and record them.
Explaining the principle of KPI operation to colleagues and subordinates
The head of the sales department must give managers time to develop some strategy. This is what the time is given for between informing employees about the new KPI system and the beginning of the reporting period. During this period, employees think over an action plan to achieve the goal. In such a matter, the manager's belief in his own strength and the success of the work is very important.
Step 9: Testing the KPI system in a focus group
Before implementing any innovation, its specifics should be tested on a focus group. For example, you can build a KPI system in the sales department. Having received feedback after the trial period, having processed the results, you can think about the reasonableness of using this system in all departments of the company.
Step 10: Obtaining results, calculating KPI bonus
For example:
During the reporting period, the employee can demonstrate a sales volume of 300,000 rubles, a sales volume of product A of 50,000 rubles, and also completed work with 4 new clients for a total of 25,000 rubles from each.
An example of calculating the KPI of a sales manager in this case: bonus for total sales volume – 11,250 rubles, for the sale of product A – 3,840 rubles, and for working with new clients – 3,540 rubles.
It turns out that the KPI bonus for the billing period for this manager is 18,630 rubles.
Of course, when implementing any new system, there may be some errors at the initial stages. To minimize them, you should do the following:
Dwell on working criteria. Track sensibly the indicators that have a direct impact on important business processes. It is also important that the quality of the indicators should depend on the work of managers. For example, an employee can influence the time of communication with a client, but cannot guarantee that the client will visit a particular site after finishing the conversation with the manager.
Select important KPI indicators. There shouldn't be too many of them, otherwise the employees will focus not on quality, but on quantity. By the way, the indicators shouldn't be too easy, so that even the laziest manager can achieve them. Then the whole point of this quality monitoring system is lost.
Explain everything to employees in advance. It is necessary to conduct clear instructions on the purposes for which such a system is being implemented. Employees must understand that all this is for their benefit and the prosperity of the company. A confidential conversation with colleagues will save management from collective discontent.
It is logical to assume that people with different success rates should have different bonus amounts. You can set payments with a decreasing coefficient (by 0.5) when the plan is fulfilled by 75%. Every 5% of the plan fulfillment, the coefficient will be higher. If a person has worked so hard that he exceeded the bar, then email database indonesia these 5% should be added. The upper bonus level can be set with a coefficient of 1.2 when the plan is fulfilled by 120% or more.
A bonus for a special task can be paid like this: if you do it, you get it; if you don’t do it, you don’t get the money.
Step 7: Setting a Plan
The manager then achieves the target KPI value when his result is designated in a specific quantitative or qualitative achievement, meaning the closure of the plan set in the current period. Naturally, the plan is calculated not simply at the discretion of the management, but in accordance with statistics, available resources, etc.
Most people use the SMART principle.
For example: sales plan – 300,000 rubles. Product A plan – 100,000 rubles. Special task – complete work with 4 new clients, the amount for each of them should not be less than 25,000 rubles.
Of course, plans must be realistically feasible. Managers will not try to achieve what is simply impossible in the current reality. The calculation of KPI for sales managers should be based on real figures that each employee can achieve with hard work.
Step 8: Explaining the principle of KPI operation to colleagues and subordinates
All information about the updated motivation system should be conveyed to employees before the new reporting period begins. After the updated program is launched into production, it is necessary to continue monitoring the process, monitoring the strict adherence of personnel to the intended plan. After the end of the period, it is logical to summarize the results and record them.
Explaining the principle of KPI operation to colleagues and subordinates
The head of the sales department must give managers time to develop some strategy. This is what the time is given for between informing employees about the new KPI system and the beginning of the reporting period. During this period, employees think over an action plan to achieve the goal. In such a matter, the manager's belief in his own strength and the success of the work is very important.
Step 9: Testing the KPI system in a focus group
Before implementing any innovation, its specifics should be tested on a focus group. For example, you can build a KPI system in the sales department. Having received feedback after the trial period, having processed the results, you can think about the reasonableness of using this system in all departments of the company.
Step 10: Obtaining results, calculating KPI bonus
For example:
During the reporting period, the employee can demonstrate a sales volume of 300,000 rubles, a sales volume of product A of 50,000 rubles, and also completed work with 4 new clients for a total of 25,000 rubles from each.
An example of calculating the KPI of a sales manager in this case: bonus for total sales volume – 11,250 rubles, for the sale of product A – 3,840 rubles, and for working with new clients – 3,540 rubles.
It turns out that the KPI bonus for the billing period for this manager is 18,630 rubles.
Of course, when implementing any new system, there may be some errors at the initial stages. To minimize them, you should do the following:
Dwell on working criteria. Track sensibly the indicators that have a direct impact on important business processes. It is also important that the quality of the indicators should depend on the work of managers. For example, an employee can influence the time of communication with a client, but cannot guarantee that the client will visit a particular site after finishing the conversation with the manager.
Select important KPI indicators. There shouldn't be too many of them, otherwise the employees will focus not on quality, but on quantity. By the way, the indicators shouldn't be too easy, so that even the laziest manager can achieve them. Then the whole point of this quality monitoring system is lost.
Explain everything to employees in advance. It is necessary to conduct clear instructions on the purposes for which such a system is being implemented. Employees must understand that all this is for their benefit and the prosperity of the company. A confidential conversation with colleagues will save management from collective discontent.