Payment of remuneration - is it pay, encouragement or gratitude for the service? What are the types of remuneration?

Employee benefits are all costs that the employer bears on the basis of the concluded labor agreement. On the one hand, the process of determining payments should take into account the activities of the employee, and on the other - be a motivation for achieving the necessary level of his activities.

The essence of the concept

Fundamental role for any employee has a material reward. However, it does not achieve its goals, if some other factors are not taken into account. Material rewards are one of the types of incentives that must necessarily be combined with interesting work and the recognition of the team. A prerequisite is the creation of comfortable working conditions, promotion, etc.

On the one hand, material motivation is seen as a means that can satisfy physiological needs, and also maintain safety. On the other hand, the amount of wages is necessarily a reflection of the level of the position held in the collective and the degree of respect.

Thus, a decent remuneration for work is a consequence of the high appraisal of the employee, his special status and prestige. Sometimes the wages themselves are considered as a source of self-esteem.

Rewards are all that is valued by man. That is why this concept is specific to everyone. In this regard, the evaluation of the reward for its importance is also different for each person.

Basic Forms

All types of awards are divided into internal and external. The first of them gives the person the work itself. It allows you to feel a sense of content, achievement of results, as well as self-esteem. Internal remuneration can also be considered as communication that occurs among workers in the process of work.

The second type of rewards is provided by the organization itself. This and the promotion of the career ladder, and recognition, and praise of the authorities, and wages. External compensations include additional holidays, insurance, etc. Here you can also include social and pensions, time for lunch and rest, and so on.

In this case, the payment of remuneration to employees is not only compensation for their work. It is a gratitude for their contribution to the production process, which affects the ability of the organization's management to attract, retain and motivate the personnel necessary for it.

Types of material incentives

Material rewards are payments made in the form of premiums and salaries, as well as additional incentives.

All existing types of allowances are classified in two directions. The first of these includes additional payments for length of service. For the second category, each company develops its own remuneration system. It provides for payments for various services.

The monetary compensation in the form of surcharges and payments can be stimulating and compensatory. The first category includes:

- bonuses;
- allowances to the tariff rates for workers or to official salaries for employees and specialists;
- Year-end promotion;
- lump sum payments for long service;
- other incentive incentives provided for high production results.

All these awards are determined by each organization independently. In this case, the conditions and amounts of payments should be determined by collective agreements.

As for additional payments and compensatory allowances, they are divided into two large groups.

The first of these includes those types of rewards that are not limited to the sphere of work. Compensatory remuneration is obligatory for payment to enterprises of any form of ownership.

The second group includes surcharges and surcharges, which are in a certain area of employment. Most of them are also mandatory for payment. But it is worth bearing in mind that the employer specifies their specific sizes.

Compulsory compensation incentives

Employee benefits paid by the employer on the basis of current legislation are the following surcharges:

- to under-age employees in connection with the need to reduce their work day;
- for work on holidays and weekends, as well as overtime;
- when a marriage is issued or the required standards of production are not fulfilled , which occurred not through the fault of the employee;
- to the average salary in case of deviations from the normal conditions of the production process;
- the worker before the assigned category, if he was sent to perform a task corresponding to a lower qualification.

Other compensation payments

The remaining types of allowances are distinguished by a limited form of application. Some of them may be established to compensate for work that is not directly related to the basic duties of the employee. An example of this is the vesting of the functions of a leader with parallel execution of his range of activities. Other allowances are paid under harmful working conditions.

Features of rewards

The head of the organization will certainly assess the professional performance of each of its employees. It affects the amount of accrued rewards. The systems of such estimates can be different. However, they have the same goal. They differentiate employees who work well, satisfactorily and mediocrely. Depending on what category members of the work collective fall into, and remuneration is charged.

Most organizations in modern conditions conduct annual interviews or attestation of their employees for such an assessment. The size of the rewards depends on their results.

Payments to employees

The reward system that exists in any organization consists of three main elements. First of all, this is the basic payment for labor. It is considered a basic salary. The other two elements are additional payments (bonuses, bonuses, etc.) and the promotion of social character.

Remuneration for work is a constant part of cash payments for the employee. It is counted for the performance of the permanent duties provided for by the job description. The remuneration for labor in terms of the basic salary consists of the official salary stipulated in the staff schedule and various allowances. At the same time, the amount of the official salary depends on the position held or the tariff level. Supplements are introduced to take into account the individual contribution of the employee to the production process. They are, as a rule, in percentage to the existing salary. Allowances can be established for long service and for knowledge of any foreign language, and also for efficiency of activity, etc.

Amount of payments to employees

Basic rewards are payments that remain unchanged for a fairly long period. However, they do not directly depend on the results of the employee's work activity.

The sizes of a variable part of the salary can depend on the manufacture of each unit of production, for which the employee has fixed fixed remuneration fixed by the organization. Such payments can be determined by the system of sales promotion or commission.

The sizes of a variable part of the salary can be totaled in percentage to its basic component. In this case, they connect the amount of the received monetary reward with the productivity of the whole company. A similar system is developed for those categories of workers for which there are no quantitative performance criteria. Their list includes accountants and managers, lawyers and business executives, etc.

The relationship between the constant and variable parts of the monetary reward can be different. It is determined by the head of the organization, based on the result obtained and the efforts made by the employee himself. In this case, the higher remuneration for labor can take the form of the company's gratitude to its personnel. For example, with a large volume of sales managers can be credited with 60, 70 or 80% of the basic salary.

Encourage inventors

A specialist can spend some time on the creation of an object of industrial property. As a result, the organization pays him an author's reward. This type of incentive has the nature of pay and it has stimulating and compensating features.

On the one hand, author's fees increase the employee's interest in working to further improve his invention. On the other hand, they compensate for moral losses from the realization that it is impossible to own the rights to a product.