How to issue the year-end bonus?

The year-end award is a material reward for employees. Employees should be rewarded if they perform well and make outstanding achievements and contribute to the development of the enterprise. First of all, they should acknowledge their efforts. Second, encourage employees to continue to work hard and achieve better work performance. So how to issue the year-end bonus? Let's take a look!

Generally speaking, there are the following types of year-end awards:

1. Guaranteed responsibilities: If foreign companies generally adopt salaries above 13 or 14, as long as employees are still in their posts at the end of the year, all employees will enjoy it regardless of their personal performance or company performance, which is similar to welfare nature, indicating the company's gratitude to employees for their "hard work" over the past year. The distribution rules here are consistent and open to all employees, and the specific amount is related to everyone's basic salary level. For example, ICI (Swire) Paint China Co., Ltd. and TCL Legrand Electric Appliance Co., Ltd. all adopt this form. For example, seven-up computer, the year-end award is mainly "double salary" system. In addition, sales staff will be rewarded according to performance, and management will pay dividends according to shares. Electrolux gives priority to material rewards and adopts the dual salary system. Excellent employees are also given extra cash rewards or opportunities to participate in professional training, and different departments have different assessment standards.

2. variablebonus: If the performance bonus is paid according to the individual's annual performance appraisal results and the company's performance results, the gap between the payment ratio and the amount will be reflected. Under normal circumstances, the payment rules are open, such as how many months of basic salary is equivalent to a certain level of targetbonus (that is, personal performance and company performance are bonuses when achieving goals) (and the higher the level, the higher the proportion of bonuses in total income), but as for the performance appraisal results of each person, each enterprise handles them differently, some are open to all employees and some are not. For example, Guangzhou Honda did not adopt the year-end double salary system, and the year-end bonus of executives was decided by Guangzhou Automobile Group according to the completion of the task. More than 90% of ordinary employees will get a year-end bonus higher than one month's salary. Another example is Shanghai GM. The year-end bonus of employees at all levels of the company will be determined according to the assessment results of the company's overall operating performance and employees' personal performance results. The specific amount cannot be announced. Midea implements an annual salary system for employees above the manager level, including basic annual salary and incentive annual salary. As for the reward annual salary, employees of different levels will get a percentage of the profit of the business unit according to the completion of the task indicators in that year and the profitability of the business unit in that year. Kelon, on the other hand, rewards employees in the marketing system are linked to performance and given certain assessment indicators. Both completion and excess can be rewarded, but to varying degrees, employees in other systems implement a double salary system. Moreover, there will be supplementary rewards for employees who have made outstanding contributions, such as those who have made achievements in product research and development and industrial design.

Third, the red envelope: usually decided by the boss, there is no fixed rule, which may depend on the intimacy between the employee and the boss, the boss's impression of the employee, qualifications, significant contributions, etc. Usually not public. Private enterprises are common.

Most Asian companies adopt the second method (variablebonus), and some employees can get red envelopes.

In addition, the monthly salary of some private enterprises is often not linked to performance, but is given back to employees when the year-end bonus is issued. As a result, the weight of red envelopes is even more amazing, reaching more than 654.38+10,000 yuan. This not only greatly improves the distribution of year-end awards, but also puts forward higher and higher requirements for the distribution effect of year-end awards.

The main forms of enterprise year-end bonus payment are: direct cash payment, shopping card payment, corresponding physical payment, incentive travel and incentive training. In addition to paying cash, some companies also include travel incentives, gift insurance, car stickers, room stickers and so on.

In addition, according to the author's extensive understanding, due to the different nature of enterprises, it is decided that major enterprises will issue year-end awards in different forms ... Financial securities, electric power, communications, large coal enterprises, large state-owned enterprises, transportation, construction, real estate and some institutions have considerable year-end awards because of good benefits.

Problems and misunderstandings in the formulation of year-end awards;

The distribution of year-end awards must first reflect three orientations: First, it reflects the company's annual performance. The advantage of this is that it can make employees care more about the interests of the company, stabilize the workforce, and establish the interest relationship between employees and enterprises. Second, reflect the annual work performance of employees. Through a certain procedure, employees will be assessed at the end of the year, and then the year-end awards will be issued based on this standard. This standardized assessment method is easier to be fair, with clear rewards and punishments, and can reduce various contradictions and problems brought about by the distribution of year-end awards. Third, it should be consistent with the performance and incentive plan at the beginning of the year. Reflect the enterprise's commitment and responsibility to employees.

Secondly, there are three steps to pay the year-end bonus. First, review the annual plan and performance agreement. Confirmation of plans and objectives is the premise of evaluation. Second, evaluate company performance and employee performance. Avoid cheating and try to get good grades. Third, calculate and distribute bonuses, formulate new performance and incentive plans, step by step.

Thirdly, the year-end assessment is also a problem worthy of attention, which is mainly reflected in the following three aspects: First, the performance plan at the beginning of the year should be clear. Only when the performance is clear can we give consideration to fairness. Third, the annual performance results should be clear. Fourth, rewards and punishments should be disciplined, and all kinds of reward methods should be considered. Don't try to do it overnight.

As long as we coordinate the above problems and attach importance to the management of daily processes, the year-end bonus will eventually achieve a happy effect.

In order to reduce jealousy, we should properly consider the different scales of various departments and individuals in the formulation of year-end awards. The distribution of differentiated year-end awards depends on performance appraisal, and a high-quality performance appraisal system is the basis for the successful implementation of differentiated year-end awards. Therefore, it is necessary to establish a high-quality evaluation index system. A high-quality evaluation index system should:

1, assessment indicators must be linked to the enterprise's strategy, which is very important, but it is often easily overlooked.

2. Don't have too many indicators, and 3-4 key indicators are better.

3, indicators should be clear, clear indicators, let people know whether they are doing well or not, and avoid the subjective consciousness of evaluators; At the same time, it also points out the direction of employees' efforts.

4. With a high-quality evaluation index system, employees should be able to test themselves or choose colleagues/customers to evaluate themselves.

5. When setting indicators, not only financial indicators but also non-financial indicators should be included; For example, customer service (on-time delivery, reducing returns, customer satisfaction statistics, etc.) should also be considered. ).

6. If the personal performance is good but does not match the team, then this person's performance appraisal score should not be high.

7. The success of the performance appraisal system is related to the realization of the strategic objectives of the enterprise. So everyone should be evaluated, whether it is a top manager or a grassroots clerk.

8. When evaluating any employee or department, it is necessary to evaluate it from multiple angles, not completely decided by one person (boss).

9. It is not surprising that the evaluation results should be accepted by the evaluators and most people in the company.

10. The board of directors shall effectively supervise the appraisers. If the appraiser is found to be cheating, the board of directors has the right to reduce someone's bonus after verification. If this person's behavior is considered harmful to the company, certain sanctions will be imposed. 1 1. As for the time for evaluation and bonus distribution, we think that one year is too long and should be shortened, at least half a year is better. Only in this way can we find and solve the problems in work and evaluation in time.

The year-end awards should also pay attention to the fairness of remuneration: fairness includes external fairness and internal fairness. Realizing external fairness can make employees' salary more competitive than other companies. If possible, the year-end bonus determined by enterprises can be higher than the industry average in absolute quantity, which is of great help to improve employees' satisfaction and loyalty to enterprises. Internal fairness refers to the measurement of the ratio of employees' contribution and income to themselves and the ratio of other employees' contribution and income. If it is equal, employees will feel fair, otherwise it is unfair. In order to grasp the principle of fairness, enterprises can adopt the following means to achieve it:

Do a good job in external market research

Know yourself and know yourself, and you will win every battle. If an enterprise wants to distribute the year-end bonus well, it should pay attention to the investigation of the external salary level and internal employee satisfaction, understand the employees' views and opinions on the level, structure and decisive factors of the year-end bonus through internal investigation, and then design and adjust the year-end bonus to be distributed by the enterprise in combination with the incentive policies and levels of the external market, especially enterprises in the same industry. When collecting external data, enterprises can obtain external information through various channels, especially informal communication, because informal communication can often collect effective data that cannot be collected through formal channels.

Scientific evaluation of employee performance

At present, most enterprises have established a performance appraisal system suitable for their own characteristics, but few of them can be fully implemented in practice, which brings difficulties to employees' year-end performance appraisal. Naturally, there is no basis for awarding year-end bonuses, and they can only rely on their feelings. Therefore, in order to make the year-end award scientific, we must evaluate employees' job performance as objectively and fairly as possible and avoid the misunderstanding that "job performance evaluation is the evaluation of employees' interpersonal relationship". This requires enterprises to be serious in the year-end assessment. It is suggested that senior leaders of enterprises participate in it and really play a supervisory role. Only by evaluating employees' behaviors rather than employees' individuals can the amount and structure of year-end awards be closely related to performance, and the undesirable phenomenon of equalitarianism or getting twice the result with half the effort can be avoided.

Fair design year-end award

Schuster once pointed out that in terms of satisfaction with organizational decision-making, employees who participate in decision-making are higher than those who do not. In fact, the design of any policy or system related to employees' interests often requires employees' participation. We should do the same in the process of formulating the year-end bonus. We should fully communicate with employees, collect their feedback, listen to their opinions and give them the opportunity to participate in the design of the salary system. Open the salary structure and calculation method of enterprises, so that employees can understand the procedure of salary decision-making and judge its rationality. The result of this not only makes employees feel respected, but more importantly, it can reduce the risks in the implementation process.

Distinguish laziness from diligence.

When designing the amount of year-end bonus, enterprises must pay attention to widening the gap between hard-working employees and lazy employees, regardless of the benefits of the departments where employees worked in that year. For inefficient departments, employees should be recognized and rewarded if they work hard. For departments with good benefits, although they have made contributions to the enterprise, they cannot be lenient with lazy employees. Otherwise, once there are "hitchhiking" employees, resulting in a situation of one glory and one loss, it will destroy the work morale of the employees in the department. In this case, who will work hard in the coming year? For example, Guangzhou Branch of a domestic bank implements the year-end assessment system, and the bonus is not capped. First of all, the head office of the bank approves a coefficient A according to the differences of branches, and the branch can multiply the year-end assessment bonus of employees by the total profit of the branch for one year. Each branch determines the coefficient b according to the performance, position, position and comprehensive evaluation of its employees, and the individual assessment bonus of employees is equal to the coefficient b multiplied by all the assessment bonuses that can be distributed to employees in the whole branch. The year-end bonus coefficient b of the branch president is determined by the superior bank. For example, Unilever will sign working agreements with departments and individuals at the beginning of the year. Determine whether to send according to the goals set by departments and individuals. If you set a higher goal, there will be a year-end bonus for those who finally overfulfill. Another example is UFIDA software, where senior executives get bonuses equivalent to monthly salary, and excellent sales staff get bonuses ranging from 5,000 yuan to tens of thousands of yuan according to their performance. Another example is IBM China Company, which consists of three parts: the first part is "double salary", that is, one month's salary is paid more. In the second part, in addition to organizing outings, the company will also pay about one month's salary as the expenses of employees' outings at the end of the year. The third part is the real "bonus", which is mainly paid according to the performance of employees in the past year. Generally, the year-end bonus of each employee is about three times the monthly salary, and the outstanding performance may be ten times the monthly salary. Employees who perform poorly or fail to achieve their performance goals will not only get bonuses, but also deduct their usual wages.

The principle of paying attention to contribution

To put it bluntly, the purpose of awarding the year-end bonus is to reward employees, which reflects the gratitude and respect for employees who have worked for one year, rather than simply giving a reward at the end of the year. Therefore, when issuing year-end awards, enterprises should pay more attention to and discover employees' contributions conceptually, and determine the amount of bonuses according to employees' contributions. Instead of thinking about how to deduct the employee's year-end bonus and how to reduce the employee's year-end bonus. Although rewards are mostly realized in material form, what is reflected behind this practice is recognition and encouragement to employees. For small and medium-sized enterprises, it is suggested that at the end of the year, the relevant person in charge of the enterprise should lead the heads of various departments to form a temporary group, and make a second evaluation of the contributions of employees in various departments in combination with the results of performance appraisal, which can often ensure a more scientific judgment on the contributions of employees, thus making the year-end award really tilt towards the meritorious minister. For large enterprises, whether the contribution to employees is accurate often depends on the implementation of the enterprise assessment system, so to achieve the same goal, it is necessary to effectively supervise the implementation of the assessment system and policies.

For example, in a municipal branch of China Mobile, the year-end income includes two parts: year-end bonus and year-end performance dividend, and the latter is limited to the senior leaders of the company. The company divides employees into 19 grades according to the administrative level, and different grades enjoy different year-end awards. The year-end bonus is the monthly salary multiplied by different coefficients. The payment standard will refer to the employee's annual performance score, position, service time and so on. Take a secretary in the general department as an example. The employee has a bachelor's degree and has worked in mobile for nearly two years. His rank is 1 1, and the year-end bonus is estimated to be 2.4 times his average monthly salary. In 2009, he won more than 30,000 year-end awards. The year-end bonus of department managers is four to five times the average monthly salary, and it is estimated that the year-end bonus in 2009 will exceed 60,000.

However, the marketing department with sales tasks will add an assessment indicator: the completion of annual sales performance. If the relevant business indicators are not completed, the year-end bonus can only be about 40% of the bonus.

For example, the employees in the sales department of Shanghai DIBIT mobile phone pay bonuses according to a certain proportion according to the sales performance, and the proportion of different positions is different. In the administrative department, the boss determines the bonus of the director, and then converts the bonus of ordinary employees according to a certain proportion.

Another example is Coca-Cola. In addition to double salary, there is a special bonus at the end of the year. Dividends can be distributed in two ways: 1, and employees above a certain level can distribute their shares, that is, they subscribe for the shares of the American head office without paying. After more than a year, when employees want to cash out, they can earn the difference between the stock price at that time and the subscription time. 2. According to the local performance of the year, each regional market is multiplied by the employee's year-end assessment score and grade parameters to get a certain bonus.

The distribution of year-end awards should be flexible and diverse. There is a law of diminishing marginal utility in economics. In fact, if the year-end bonus is not innovative every year, this rule will also appear on employees. Let it feel that the reward is becoming more and more boring, thus gradually losing its due incentive function, which is certainly not what enterprises need. In reality, due to the customization of the year-end bonus, many enterprises that continue to operate are constantly strengthening their employees, which leads to the phenomenon of "satiety" of many employees, thus greatly reducing the incentive function of the year-end bonus. This also reminds enterprises to make some innovations in the design of year-end awards. The author suggests that enterprises might as well do this:

Intermittent year-end awards

Intermittent distribution requires enterprises to break the traditional distribution form of year-end awards, but distribute them in a decentralized way. For example, two or three months before the end of the year, bonuses can be distributed to a department in the name of bonuses, while reducing the number of year-end awards and diluting the concept of year-end awards. In order to break the solidification of the year-end bonus, the year-end bonus is appropriately deformed into gap reinforcement to stimulate employees to work actively. Thereby motivating employees to a greater extent. In addition, if there is a major investment demand in the coming year, enterprises can appropriately disclose the news that the year-end bonus may be cancelled due to financial pressure, thus reducing employees' expectations for the year-end bonus. When the real year-end bonus comes, it can be officially announced. After the employees go all out, they decide to issue the year-end bonus as scheduled. In this way, in the next really tight fiscal year, enterprises can avoid more risks caused by not issuing year-end bonuses, because the transmission of this information can alleviate the loss and anger of employees at that time to some extent.

Divide the year-end award into several parts.

Enterprises can split the year-end bonus into several parts and distribute them in different names near the end of the year. Of course, they must have a good reason to do so. For example, employees who are willing to share knowledge with the team, travel for many years and take the initiative to cooperate can be awarded various titles such as special dedication award, partner award and innovation award. This flexible payment method has a much better incentive effect on employees than a one-time bonus without saying more reasons. Peking University Zongheng Management Consulting Group Company has done a good job in these aspects.

In addition, enterprises can try more creative forms of year-end awards, and tourism as a year-end award is also worth considering. During the trip, employees communicate, entertain and eat together. Help each other when there are difficulties and share joy. Not only will feelings be greatly increased, but the frictions and contradictions in previous work will also be resolved through laughter, and cooperation and mutual assistance in work will often be significantly enhanced after returning. It not only enhances the dry feeling and understanding between employees, but also increases the knowledge of employees. Kill two birds with one stone, why not?

Peking University Zongheng Management Consulting Group Co., Ltd. adopts this form of "breaking the whole into parts" incentive model, such as vitality camp, 88-style tourism, cultural and sports activities, study tour and so on.

As a form of year-end award, Spirit Award is very popular abroad, and we can learn from it. Enterprises can invite outstanding employees' families to participate in the commendation meeting specially held by enterprises at the end of the year or on the eve of the Spring Festival. You can also thank employees' families for their support to the work of outstanding employees in other public occasions. At the same time, it can give employees' families a little display and give them a certain bonus. This will not only make employees feel infinite scenery and feel at home in the enterprise, but also get more encouragement and support from their relatives in their future work. This is a good strategy for China employees who value family relations. TCL Group has adopted this form.

For employees, the importance of the year-end bonus is self-evident, which can affect their enthusiasm for work in the coming year. In reality, many employees often associate their year-end awards with the evaluation of their leaders and their position in the minds of leaders. In order to prevent employees from affecting their work, many enterprises require the year-end bonus to be as strict as salary, and often adopt the method of "fuzzy payment" and do not disclose the amount. Because the amount of awards involved in the year-end awards is often relatively large, and the distribution time is at the handover point of the old and new years, it has a great psychological impact on employees. However, it seems that this practice often has the opposite effect: speculating on the income of other employees, expressing doubts and dissatisfaction with the fairness of year-end bonus distribution, and so on. It is ubiquitous in enterprises. Therefore, it is very important for enterprises to handle this problem well. If someone falls behind, it will be in big trouble. The author suggests that enterprises can do this:

Implement the year-end double salary system

Double pay at the end of the year is simple and transparent, and there is no need for enterprises to keep it secret. However, double pay at the end of the year is not without rules. Enterprises need to define the scope of distribution, so as to achieve the dual purposes of motivating employees and saving enterprise costs. Because of this, enterprises can determine which employees can enjoy double pay at the end of the year according to the individual assessment of employees and the assessment of their departments, while all employees in unqualified departments and unqualified employees in qualified departments cannot enjoy double pay at the end of the year.

In addition, enterprises should also note that employees who enjoy double pay at the end of the year must also meet other conditions. For example, an electronics company stipulates that employees must serve in the company for three months in that year; You must still work in the company on the day of double pay; Most importantly, employees who resign or terminate the labor contract due to negligence or non-negligence before the double salary is paid will not enjoy the annual double salary. This move is worth learning.

Usually work hard.

For mature management enterprises, the real purpose of year-end assessment is not to issue year-end bonuses, but to comprehensively evaluate employees, guide their training, work arrangements and improve their performance. In this sense, the year-end award does not represent all the achievements of employees. Whether it is a secret "red envelope" or an open system, strengthening management and improving performance appraisal are the only way to improve employee satisfaction and ensure safety. Therefore, enterprises must pay attention to daily management, and can't keep the problem backlog until the end of the year, so as not to turn the year-end assessment and year-end bonus distribution into a movement.

The number of year-end awards issued by enterprises, even whether they are issued, mainly depends on the benefits of enterprises and the needs of employees in this regard. In fact, the unit does not necessarily spend a lot of money on year-end benefits. Even a greeting, a card and a routine physical examination will make people feel warm and meaningful. "

The number of year-end awards issued by enterprises is actually related to the reward system of enterprises. Different industries and different positions here should adopt different reward systems. The basic reward system includes salary reward, commission reward, year-end bonus, equity incentive and option incentive. And some training incentives, promotion incentives and spiritual rewards. Different people use different reward methods. No matter which way the enterprise issues the year-end bonus, there is a principle of * * *, that is, the year-end bonus should not only safeguard the enterprise's own interests, but also take into account the psychological expectations of employees. Only by giving consideration to both can the year-end bonus be distributed fairly, which can play the role of reward and incentive and lay a good foundation for the company's operation in the second year.

In fact, the way of awarding year-end awards depends largely on the level of human resources management, especially whether there is a scientific and perfect performance appraisal system within the enterprise. In large enterprises with relatively sound human resource management system and standardized management, it is suggested to adopt the calculation and distribution scheme of open year-end bonus. For small-scale and poorly managed enterprises, it may be a better choice to secretly distribute and encourage them in the form of red envelopes.

However, it needs to be reminded that enterprises can't run more than fifteen after the first day. If they want to make a long-term plan and issue annual year-end bonuses, it is best to strengthen the human resource management level of enterprises from today, especially to establish a scientific and perfect employee performance appraisal system. Really put kung fu in peacetime and plan ahead.