Elaboration of “smart salaries”

About the service

The employee motivation – is the "gene of the company", after studying of which, one may say much about the “health” of the corporate organizm as a whole. 

Great experience (since 1993) of the specialists of the consulting companies Pán Myšlenek s.r.o. (Prague, Czech Republic) and OOO "Sychyov & and K^o" (Russian Federation) testifies that: almost no consulting passes without expertise and/or the setting of Key Performance Indicators.

You can order this service for your Company by inviting the best specialists in this field A. Kavtreva, K. Tkalich (Remizova)

How the elaboration goes on

Step 1.
First we diagnose the existing systems of stimulation, including the determination of areas of work where the employees:

• Get lazy;
• Make “annoying” errors etc.;
• Substitute important, but hard work with psychologically more convenient “routines ";
• Drag the time frames under the guise of frequent handy jobs;
• Do not want to think or show initiatives;
• "lie" (make the work more complicated to avoid doing it).

Step 2.
Then we specify and formalize criteria of results from the work of the departments and employees.

Step 3.
Simultaneously  we solve problems linked with to the employee motivation (including the ones which are sometimes considered as “unsolvable”). For example, these:

• You cannot “tie” each result to sales.
• The percentage of profit is often not linked to the complexity, and lucky big deals tend to relax employees.
• The employee actually does a variety of work; how to combine them into a common “lean” salary formula?
• Should the employee get a bonus for what he must actually do?
• How to stimulate the employees who do not work with clients?
• How to make the supervision of accountants (and other “budget” departments) controllable and “transparent”?
• “At the end of the day” it is necessary to evaluate not only the contribution of the employee but also the employee himself.
• The result is meaningless without accounting of a loss to reach it.
• The results of the work contain qualitative characteristics (the work is creative).
• No matter which criteria we set up, stimulation will be futile because it is not possible to compete with theft.
• The data to be selected as a criterion of performance is subject to peaks and turndowns.
• Achieving results strongly depends on the work of adjacent/ external conditions. What to do? Should we punish the innocents?
• It is not clear what increases performance. Employees are already doing their best to work hard
• Some employees are new, others are with experience (some have standard qualifications, others high).
• Under equal conditions (Ceteris Paribus) some work better and some worse. That’s how people are.

Step 4.
We develop the system of smart salaries which enable “natural selection” of hardworking and able employees.

Step 5.
Additionally we prepare recommendations to strengthen the wage system:

• With administrative solutions,
• With company standards,
• With quality lists,
• With bonuses, which increase initiative and decrease the number of excuses

Step 6.
We develop comfortable templates ("salary calculators"), in which performance criteria are described, bonuses are assessed, penalties are imposed, conclusions are made etc.

Step 7.
Recommendations are given on how to implement.

What You get:

Models of salary as templates in the format EXCEL. This is the calculator of salaries where:

• Examples are given beforehand (usually for one employee, 1-2 duties) errors/infringements, which the employee can make,
• A calculation of the errors/infringements of the employee is made automatically,
• Examples of documents are given beforehand (reports, curriculum vitae, forms, copies etc.), which the employee should prepare for a given time frame and the list of other – tasks and work which should be completed,
• A report on the efficiency is made automatically for respecting the time limits for handing over the documents and completing tasks,
• Criteria are defined and established, on which depend the salaries of the employees,
• Other premiums and bonuses are introduced,
• The weight of criteria and premiums are defined and stated,
• Limit conditions are set up to get different bonuses,
• All the criteria of the efficiency of the employees are set together and an automatic calculation occurs,
• Contains detailed explanations and methodical recommendations from specialists.

The price and Your benefit

Unaccounted losses from unproductivity and poor employee performance GREATLY overdue the investment in the elaboration of his salary.

• 50% of the salary of a line manager,
• 35% of the salary of a middle-manager,
• 20% of the salary of a senior manager

for 1 (one) working month.

The effectiveness of the same work of an employee if the model of salary is made “properly”, as a rule, increases (tested) 2 to 5 times. It is not difficult to count how much a company fails to earn from each employee daily and monthly and yearly.

We correlate these amounts to the cost of developing smart salaries. Disparate amounts…

For a volume of more than 7 positions, the services can be done in the town of the Customer.

Costs for travelling, accommodation and daily allowances of the Developers are paid additionally.

If on ordering the Smart salaries for the head positions there is a low amount order [i.e. less than 70%] of Smart salaries for the positions of direct or indirect subordinates, then the cost indicated here is increased considering the following coefficients:

Level 1

If the elaboration of Smart salaries is ordered for a high level head of a large company (or the head of a group of companies and/or structured holding departments), and the elaboration of Smart salaries for his subordinates (either direct or indirect) is ordered for an amount less than 70% from their number or is not ordered at all, then coefficient 4 is applicable.

Explanation (hereinafter): developers still need to explore, to formalize and evaluate the work of all or almost all departments in order to create an effective model for Smart salaries for the head. That is why, a complex elaboration is more profitable for the Customer. At comparable costs the Customer receives a package of Smart salaries not only for the head positions of an appropriate level, but also for their subordinates.

If Smart salaries are ordered for the subordinates also(more than 70% of subordinate positions), then no increasing coefficient are applicable.

Level 2

If Smart salaries are ordered for the head of a small independent company and the elaboration of Smart salaries for his subordinates (direct or indirect) is ordered in an amount less than 70% of their number or is not ordered at all, then coefficient 3 is applicable.

If Smart salaries are ordered for the subordinates also (more than 70% of subordinate positions), then no increasing coefficient is applicable.

Level 3

If Smart salaries are ordered for the head of a department, and the elaboration of Smart salaries for his subordinates (direct or indirect) is ordered in an amount less than 70% of their number or is not ordered at all, then coefficient 1,5 is applicable.

If Smart salaries are ordered for the subordinates also more than 70% of subordinate positions), then no increasing coefficient is applicable.

Level 4

If Smart salaries are ordered for an employee who does not have any subordinate то then, no coefficient is applicable in any circumstance.