Kulagin Oleg Anatolyevich
Trainer consultant
Noooo's E.T.

Many companies are faced with the need to develop or revise the existing staff incentive system sooner or later. This is due to the fact that the previous system was either absent at all or was nominally present and, in fact, " not working " , i.e. did not have a significant impact on or even ignored the behaviour of workers. Practice shows that such a provision usually occurs for the following reasons:

• Staff performance and evaluation criteria are not clearly defined or communicated to employees who may not or may not be aware of the requirements of their management.
• The staff of the organization lack the skills and skills to meet management standards and requirements. In this case, people need to be trained.
• The proposed incentives do not correspond to the domestic motivation of workers, i.e. the incentive programme does not take into account the general structure Labour motivation of staff♪ In particular, this may be manifested in the misappropriation of monetary incentives and the rejection of non-monetary incentives (natural, moral, organizational and other) affecting the motivation and loyalty of workers.
• In the staff stimulus system, negative incentives prevail, which demotivate and resist people.
• The organization does not have a flexible and operational staff assessment system. In this case, the quality of workers ' labour is declining, and managers are not adequately informed about the performance of their subordinates.
• The stimulus programme runs counter to the company ' s established organizational culture, i.e., the programme does not take into account the well-established values, traditions, rules and behaviour of people in the organization.
• The proposed incentives are not important to people. For example, it has been shown that monetary incentives (prims and fines) affect motivation only if they are not less than 20 per cent of the constant salary.

In order to avoid these and other mistakes, the process of designing the incentive system should not be inspired by the will and reflect only one or two leaders responsible for this work. The development of a staff stimulus system should be carried out through special methods and based on objective analysis of the situation both within the organization and in the labour market. The following sequence of actions is proposed for this purpose.