Material incentive for personnel is a way to achieve the company's goal. Material motivation of personnel: concept, methods and effectiveness of application

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What is meant by material motivation?

Material motivation is the amount of cash payments by an employer to an employee.
Material motivation refers exclusively to monetary compensation, which is paid in cash or by bank transfer:
- basic salary (salary),
- bonuses, allowances, overtime pay, percentage of sales.
What privileges are not material motivation?
- Social guarantees (sick leave payments, vacation payments, etc.).
- Provision or compensation of a social package with money (travel, mobile communications, gym, meals, etc.).
- Compensation for unused vacation, travel allowances.

How to estimate the amount of material compensation?

candidates. This is the price at which the employer "sells" himself, and the employee, accordingly, estimates.
The first assessment of the employer's attractiveness, depending on the material compensation that he offers to the future employee, begins in the process of finding a job. However, the employer does not always indicate the amount of future material compensation in an advertisement with a vacancy.
Almost every third vacancy on personnel search does not contain information on salaries. Moreover, the "transparency" of ads directly depends on the professional field.
1) When looking for working personnel or qualified specialists, then, as a rule, 87% of publications indicate a specific salary or its range.
2) 42% of employers prefer to indicate the salary range (from and to) if they are looking for middle managers and line personnel. This is due to the desire and readiness of the employer to vary the level of the offered salary depending on the knowledge, skills, experience and competence of the applicant.
3) The most "closed" positions are managers of all levels and other administrative personnel. As a rule, the higher the position of the applicant, the candidate learns about the salary directly at the interview. First of all, such "secrecy" is tied to the sincere conviction of the employer that salary should not be a priority in choosing a place of work. According to employers, a candidate should be interested in a vacancy if he is sure that he meets the specified requirements, or if he likes this company and position.
4) There is still a small circle of employers (about 13%) who do not indicate the amount of wages at all, regardless of the vacancy, hoping to subsequently offer the minimum possible.

Material compensation is a broad concept

If the employer still indicates the exact amount of remuneration, then this information should not be considered final and understood unambiguously.
1) About 60% of employers indicate the amount of salary before income tax.
2) Only 40% of employers indicate the amount of salary that the employee will receive on his hands "clean".
3) As mentioned above, material compensation is not only a salary (salary). The size and regularity of payments of the above-mentioned bonuses and allowances are not indicated in the announcements at all, although the salary increases are at least 50% of the salary, regardless of the position.
As a result, even on

Every step we take is the fruit of motivation. It is raining outside the window, the weather is disgusting and, as they say, a good owner will not let the dog go for a walk. But you get up and go to the store, or do not go - it all depends on how much you need what is in the store. That is how much stronger your weather conditions are.

There are three types of motivation:

• material;
• moral;
• administrative.

The goal of any kind of motivation is to create conditions for more earnings, so that work at the same time brings pleasure.

Let's be honest, material kind of motivation is the most effective and fastest way to get a person to work.

Material motivation is realized in several ways:

• the system of remuneration (the ratio of the contribution to labor and the money received);
• performance tracking system (how much will your salary change if you increase productivity);
• the opportunity to realize the funds received (what you can buy for the received remuneration);
• additional motivation (payment of travel expenses, subsidies for meals, medical services paid by the company, issuance of branded cards with discounts in sports clubs, etc.).

In addition to material, moral motivation is also considered effective. That is, if material motivation can be characterized as: "you work better - you get more", then moral motivation is: "you work better - you achieve success, you become an example to follow, an authority, a leader."

One company came up with the following kind of moral motivation. An employee who has achieved particular success in his workplace gets his own office and the opportunity to personally choose a secretary. All this without a promotion or salary increase. It turns out that this has become a huge incentive for many "hard workers".

The easiest way is to engage in material motivation of employees based on the results of completed work. Each job has at least one performance metric. For sellers, this is the volume of sales, for manufacturers - the volume of production, its reduction in price and improvement in quality.

Here are examples of the most common methods of material motivation in the field of sales.

For example, a seller sells 40–60 units of goods per month on average, and the premium for each unit sold is $ 1. This means that his monthly premium is $ 40-60.

But, he did a miracle and sold not 60, but 70 units. As a result, he will receive not the usual $ 60, but as much as $ 70. Will there be a difference of $ 10? especially to encourage him to work extra hard next month? Unlikely.

Second option. Since the average sales volume is 50 units, the manager sets the bar for monthly sales of 50 units. Only by levying this line he will receive $ 1 each. for each unit. This means that if he sells 49, he will receive nothing. In this case, the employee will go out of his way to master the plan. There is no sense in overfulfilling it and there is no moral strength, because as a result, you will get the same $ 1. for a unit.

The third option is choosing wise bosses. If the seller sells 50 units, he gets 1 USD each. per piece, if 70 - $ 1.5 each. for a unit. So, he has two options: to get 50 USD. or 105 - the difference is tangible.

As a result, management makes one salesperson work for two.

In addition, it is necessary to apply material methods of motivation. not only with a monthly, but also with a half-year and one-year overfulfillment of the plan. After all, if an employee fails the plan in some month, he will be able to recoup the money, exceeding the six-month figure.

All this works great, but still, there is still a little room for the moral motivation of work.

Good work is not where you get paid a lot, but where you get pleasure from work. Moral motivation is much more complicated than material motivation, because here arises a plexus of ambition, healthy rivalry between employees, opportunity, praise from the manager, recognition among colleagues.

The productivity and profitability of any company depends primarily on the attitude of employees towards their work. Everything is like in physics lessons: the efficiency of a system is the product of the efficiency of all its mechanisms. Obviously, one of the main tasks of the organization's management is to motivate employees to be fully committed to their work, professional self-development and honest fulfillment of obligations. In this article we will talk about the system of material incentives for staff, as one of the proven ways to influence the efficiency of the team.

There are few people left for whom money is not a goal, but only a tool for achieving abstract happiness. Everything is now measured in money, so we need to use this general monetization of life in our own interests, which helps to successfully cope with material incentives for staff labor. It is customary to distinguish two types of material motivation: direct and indirect, each of which we will talk about below.

Direct motivation

You are constantly faced with such motivation, if not in your own experience, then you must have heard stories from friends and acquaintances. The most common method of material motivation of personnel is payment of a specified percentage of the total profit. Students handing out flyers on the streets, call center employees, retail workers and many other employees are tied to such a scheme. The more people you have made clients of your company, the more double-glazed windows you have sold, the more you will receive at the end of the month. Typically, a bonus is added to the flat rate based on the number of sales made.

What can be said about such a scheme: it will work very successfully if you respect the work of your employees and adequately assess the possibilities of the market. If an employee works hard for a month, doubles the plan and gets a bonus of 2,000, then he is unlikely to stay for the second month. The situation is similar when you ask a person to sell Bentley cars somewhere in the province. Summarize. There are two options for development: either a tough turnover of personnel due to inadequate conditions for the formation of wages, or well-motivated personnel who have realized the direct connection between their own efforts and high wages.

Personal cash rewards. A good example of material motivation of personnel is one-time cash payments as an incentive for an employee's work. This approach makes it clear to employees that the bosses do not perceive their staff as a faceless crowd, but closely monitor the success of each. Yes, the management will have to strain itself and strain the heads of departments to monitor the "progress" of employees, but such personalization of work often bears fruit. Completed a complex project on time? In a crisis situation, went to work on a day off? Did you help out a colleague and, together with your task, managed to solve his problem? With competent material incentives for employees, all these merits should, at the end of the reporting period, be encouraged not only by personal praise, but also reflected in the payroll. Also, do not forget about unexpected and therefore more pleasant gifts for birthdays and other holidays. Even a 5-10% salary bonus will make it clear to the whole team that the desire to develop and the desire to help the company will be encouraged. Otherwise ... "Why pay more?"

Company shares, securities. In the West, the practice of rewarding highly valuable employees with company shares or other securities has long taken root and works great, but in our country it is in its infancy. It is clear that no one will give out shares to the left and to the right, but especially valuable workers, whose departure will be a blow to the stability of the company, should be fed with such things. You can also reward seniority by putting pressure on the feeling of “patriotism” towards the company: if, in addition to raising the salary, you transfer at least 1% of the shares to an old-timer, then this will become a very powerful source of motivation.

Raising salaries. The most obvious system of material motivation for personnel is the regular revision of wages. Usually followed by a short interview. If a person develops, evolves from a newcomer to an important member of the team, but this is not noticed in any way at his income level, then in a couple of months a quite reasonable desire may arise to change his place of work to one where the bosses will soberly evaluate the work of subordinates. Also, the revision can lead to a decrease in wages or even the dismissal of a person if his pathological laziness, eternally burning deadlines and other jambs emerge.

Indirect motivation

Among the methods of material incentives for personnel, indirect motivation, which will increase employee loyalty to the company and make them value their place, enjoys stable success. These include fully paid leave, a full social package with sick leave payments, a pension insurance system, profitable insurance, spa treatment options, material support for young families. Even without seeing money, a person will work more productively because of a sense of security and confidence in the future. Words are banal and hackneyed, but they reflect reality perfectly.

Principles of material motivation of personnel

It is one thing to choose a method of material motivation for personnel, and another thing to successfully apply it in your company. This is especially true of large companies, where the walls have ears, and rumors and a damaged phone create so many reasons for resentment and scandals that it’s scary to imagine. Why was Benjamin given an increase, but I was not? Why does Evlampia get more than me, even though I work here two weeks more? Yes, corporate ethics and, often, an employment contract imply a prohibition on disclosing and discussing work conditions, but does that really save you? To facilitate the integration of the system of moral and material motivation of employees, we advise you to familiarize yourself with the basic principles.

1. Execution of obligations. This time from the side of the leadership. This imperative must be followed by management if they want to achieve any success in business development. It is worth delaying a salary a couple of times, unreasonably refusing a bonus or neglecting the personally established rules and all attempts will come to naught.
2. Regularity. Since you have introduced measures of material incentives for employees, please do not forget about them. It often happens like this: they announced the introduction of a bonus system, paid good bonuses within a couple of months, realized that it was too expensive and that's it. It is better to reduce the amount of remuneration, but to consistently please worthy workers with them.
3. Transparency. A very important point, because of which all kinds of rumors and omissions arise. It should be like in a game where the rules are told even before the start of the game.
4. Objectivity. Belongs to the same category as transparency. People will quickly notice if you pay more ineffective pets and reward real hard workers with pennies.
5. Carrot and stick. All types of material incentives for employees involve not only a system of bonuses and bonuses, but also fines for non-fulfillment of direct duties or violation of the work schedule. As valuable as the employee is, regular late arrivals or hours of phone calls in the hallway should not be overlooked. Impunity is very relaxing. And in general, without some kind of balance of justice, it is difficult to earn trust and keep a team in check, especially a large one. To begin with, you can punish not with fines, but with the deprivation of those very bonuses.
6. Individual approach. This has already been discussed earlier, but we want to once again focus your attention on the importance of personal communication in the system of material motivation of personnel. It is worth setting aside a couple of days every 2-3 months to communicate with your wards, trying to get to know everyone better and make it clear that you are not an ancient Greek god from Olympus, but the same person. This is usually done by HR, but it is also useful for the bosses to go out to the people.
7. Cohesion support. Many modern methods of material incentives for personnel are aimed at rewarding collective work. Has the group involved in a large commercial project successfully completed the tasks? Express your gratitude not only in words, but also with a small bonus to all its participants.