Bonus is ... A sample of the provision on bonuses to employees

Today employees of HR departments of many companies are increasingly betting on such a method as bonus. This makes it possible to significantly increase the attractiveness of the enterprise for job seekers and employees, and therefore, makes it competitive. Another huge plus of bonuses is that interested employees work more readily.

The essence of the bonus system

According to the definition given by the Labor Code, bonuses are accrual and payment to employees of the enterprise of additional financial means besides wages. Such a scheme is available to absolutely all organizations, regardless of the form of ownership and type of activity.

The bonus system at budget enterprises is determined directly by their management. In this case, both the type of material incentive and its size can be appointed by the head of the organization. The main condition: the total amount of payments to employees (salaries plus bonuses) must fit into the allotted appropriations.

For non-budget companies, the situation is slightly simpler. Since they are not entitled to funding, then they should not report how much money was spent on salaries, they should not. For this reason, such enterprises have relative freedom of action. At the state level, the minimum wage threshold is defined, and on its basis the company's management assigns salaries, bonuses, allowances and additional payments.

Types of bonuses: features of regular payments

Two types of bonus payments are most often used. The first of these is remuneration, which provides for the payment of labor accepted at the firm. Bonuses in this case are systematic, that is, premiums are paid regularly (once a year, quarter, half a year, month, week). Not all employees are awarded, but a certain circle, for example, economists, sales staff or employees of several departments. To deduce the sum of the award, take into account the specific indicators of labor developed by the company and the conditions for awarding.

In addition, there is a fixed amount of payments: one official salary, half of it or a percentage of the amount of wages.

All the nuances that accompany the process of accrual and payment of financial compensation of the first type, contains a provision on awarding employees. This document is approved by the administration and, if necessary, is coordinated with the trade union. The Regulation imposes an obligation on the organization to issue a bonus to employees in a specific amount in the event that they fulfill the stipulated conditions.

More about premiums of the first type

At more detailed consideration financial awards of the described type are divided into two groups:

• Award for the achievement of the company's planned goals. This bonus is the main incentive for the staff, which encourages them to carry out assignments.
• Encouraging the initiative is a reward for improving the equipment, accounting system or other aspects of the organization's activities.

This kind of premiums are combined into a special group and applied when the employee achieved savings in raw materials, materials, some kind of energy or helped his company in another way.

A one-time bonus is not a system

As the name implies, non-recurring financial awards are not paid regularly. The main condition for obtaining them is the achievement of concrete successes in labor or the onset of a significant event, for example, a state holiday, the anniversary of a company, an industry, a certain employee.

The sample of bonuses to employees in this case is as follows: the employee has been working diligently for the good of the firm for ten years. In honor of this jubilee, the head issues a decree on the issuance of the award to the distinguished. That is, the basis for the payment of remuneration is a memorable date (this and other similar conditions contain a provision on awarding employees).

Why make up a position

This document can be attributed to the local acts of the organization, that is, each company develops its structure and content independently. The document applies only to employees of a particular enterprise.

A sample of the provision for employee bonuses is presented below.

When drafting it, the administration pays special attention to the economic justification for premium payments. Their main task is to avoid an equalizing principle in the distribution of remuneration.

Based on the specifics of the technological process, the production cycle and the periods used for accounting, the time for awarding is chosen. The same factors determine whether a site, shop, division or the whole firm will be encouraged.

Additional payments and bonuses that are taken into account when calculating premiums

The salary of some employees of the enterprise can consist not only of one salary. Sometimes people take on additional responsibilities and responsibilities, which, naturally, is reflected in the financial plan. Another higher salary is due to difficult working conditions or professional achievements.

If the accountant is engaged in the calculation of regular rewards, it makes sense for him to retain the model of the provision on awarding employees once created as a template. When there is more than one category of employees in the firm that have different types of financial support, there should be several templates prepared.

A surcharge may be added to the employee's tariff rate in the event that he:

• Combines professions (positions).
• Performs duties of another employee (which is temporarily absent).
• He works in unfavorable conditions.
• Works at night.
• Has a non-standard working day.
• He reached a high professional level (he received a class or a degree, was awarded for high achievements, fulfilled important assignments).

A more exact list of additional payments is made for each enterprise individually.

Bonus Organization: conditions under which compensation is to be paid

That issued awards really became a motivating factor for employees, they are distributed, accrued and given out in accordance with a system developed in advance.

There is nothing worse than unfair punishment or unreasonable encouragement, since in this case the authority of the leader is undermined, and the trust of employees can no longer be counted.

The conditions and indicators on which to base premiums are set out in the provision on bonuses (the sample proposed above is just one of the possible options).

How to create a premium system

Developers of the system take into account the following factors:

1. Have the goals been achieved and do they affect the efficiency of work.
2. Are the indicators for which the premium will be awarded?
3. Are there any conditions under which it is possible to realize a bonus?

For employees of different services and divisions of the same enterprise, the bonus indicators, goals and conditions will be different. For example, employees of technical control can be awarded only in the event that specific performance indicators of products are reached. For designers and technologists, remuneration is often assigned for the fact that they develop and implement new technology, technology and materials. Accountants earn premium by making certain reports and performing calculations.

In the event that the result of the work can be estimated using objective indicators (quality, quantity, volume), the amount of remuneration is tied to such data. If the content of the work and its results are more abstract (scientific achievements, research, other creative tasks), then the amount of payments depends on the personal contribution of the specialist to the common cause or determined by expert judgment.

What employees of the firm are awarded

Premium payments are only reimbursed to those employees who are in the company staff, as well as to people who work under a fixed-term employment contract (hired for a particular job). In the event that the employer concludes a civil law contract with the person, the section on monetary compensation is negotiated separately.

For employees who are not in the state, other conditions apply: the administration may include a bonus clause in the collective bargaining agreement or discuss the need for additional payments with a trade union representative, the chairman of the council of the work collective or with another authorized person.

How does the bonus presentation take place?

When the next period comes to an end (month, quarter, year) or a specific task is completed, the accounting department employees and department heads start distributing the premiums.

First of all, accountants prepare reports on expenses for this period, on the labor remuneration fund and on how much money will be spent on financial motivation of employees.

Further, the director examines the reporting data received from the units (if they exist), and distributes funds between departments.

The work of deputy heads is that they supervise the units entrusted to them (branches, departments, laboratories). At the end of the bonus period, they must submit proposals regarding the amount of incentives for the heads of these structural units. At the same time, deputy directors listen to the opinion of their subordinates (heads of departments) about what kind of award should be given to specific employees. Most companies choose to submit proposals in writing.

Completion of the submission procedure

At the next stage, all proposals submitted must be coordinated. In the end, they are approved by the director of the enterprise, and this becomes the basis for the corresponding order.

The administrations of some companies also prefer to coordinate their actions relating to the financial encouragement of employees, with representatives of the labor collective or the trade union.

When all the conditions are met, the manager can issue an order for the organization, in which the grounds for issuing bonuses and its sizes for each employee will be presented. Regardless of whether a premium position is accepted in the company, the order is still issued.

Individual nuances

If the employees of a large company are awarded, then the order does not specify a list of all the names. They are included in a separate document, which is prepared by the department of work with personnel. This list is considered an attachment to the order.

All financial awards are necessarily reflected on the personal account of each employee, and also appear in his account statement. This is necessary in order to be able to deduce the average wage with maximum accuracy.