How to pay employees for productivity?

Posted by Mereo
at Friday July 20th, 2012.

Assign a value to each task performed well can help control productivity

Compensation for productivity is now a core value in the culture of many successful companies. There is no easiest area to measure productivity that trade area because the seller or sells or does not sell. It is much more difficult, however, measure and control the productivity of other areas and assign a value to each task performed well.

Develop a productivity compensation plan requires planning, implementation and mainly discipline managers to track results month after month. There are now some “talent management” software that facilitate the monitoring and calculation of the results, but you can also start with a spreadsheet, because the basic principles are the same.

Set the main function of the objectives, tasks which are necessary to achieve each of these goals, a weight each activity, which delivers levels of this task and create an extra fee, usually based on a percentage of current salary of that person, for each one of the delivery tracks you consider.


For example, for the position of active operator, the goal would be to schedule meetings and tasks would find potential contacts. Weights and delivery levels could be: viable, talk to these contacts and schedule meetings.

find contacts amounts to 20%, talk to contacts would be 30% and schedule meetings, 50%. For each task, he could have unsatisfactory performance (0%), satisfactory (50%) and above expectations (100%) as the targets. Productivity by compensation sheet, the classification suggested is that if he add from 0% to 50% in the three activities, does not take bonus. If you stay between 51% and 70% earn 10% more current salary. If between 71% and 100%, the bonus can reach 20% of salary.

An example of evaluation would look like this: if he got 25 contacts, was above expectations and 20%. Thus, there were 10 successful phone calls, which classifies it as satisfactory and give you 15%. Finally, there were 4 scheduled meetings, with a value of 25%. In total, 60%. Ie, the employee will be paid with your basic salary plus a bonus of 10%.

You can decide to do this monitoring every month, semester or year. The harder it is to follow up with dessasmétricas discipline.

Author: Othamar Gama Filho.

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