How to issue company year-end benefits

Year-end bonus is a material reward for employees. If employees have excellent performance, outstanding work achievements, and have contributed to the development of the enterprise, they should be rewarded. Firstly, it is to recognize the employee's efforts; secondly, it is to encourage employees to continue working hard and achieve better work performance. So how are year-end bonuses distributed? Let’s take a look below!

Generally speaking, the payment forms of year-end bonuses include the following:

First, guaranteed bonus: such as 13 or 14 salaries or more commonly used by foreign companies, as long as the employees are paid at the end of the year Still on the job, regardless of his personal performance or the company's performance, all employees can enjoy it. It is a "general benefit", similar to the nature of welfare, and expresses the company's gratitude to employees for their "hard work" over the past year. The payment rules here are consistent for all employees and are public. The specific amount is related to each person's basic salary level. For example, ICI (Taikoo) Paint China Co., Ltd., TCL Legrand Electrical Appliances Co., Ltd., etc. all adopt this form. For example, Qixi Computer, the year-end reward is mainly a "double salary" system, and sales staff also have other bonuses based on their performance. Rewards, and management will distribute dividends based on shares. Electrolux mainly provides material rewards and adopts a dual-salary system. For outstanding employees, there are additional cash rewards or opportunities to participate in professional training. Different departments have different assessment standards.

Second, variable bonus: For example, performance bonuses are distributed based on individual annual performance evaluation results and company performance results. At this time, the gap between the distribution ratio and amount is reflected. Usually the payment rules are public, such as how many months of basic salary is equivalent to a certain level of target bonus (that is, personal performance and company performance are bonuses corresponding to reaching the target) (and the higher the level, the bonus accounts for the total income. (the higher the ratio), but the specific performance evaluation results of each company are handled differently by each company. Some are made public to all employees, and some are not made public. Guangzhou Honda, for example, does not adopt a year-end double-salary system. The year-end rewards for senior managers are determined by the Guangzhou Automobile Group based on the assessment of completed tasks. More than 90% of ordinary employees receive year-end bonuses that are higher than one month's salary. Another example is Shanghai General Motors. The year-end bonuses for employees at all levels of the company will be determined based on the company's overall operating performance and individual employee performance appraisal results. The specific amount cannot be announced. Midea implements an annual salary system for employees above the manager level, which includes two parts: basic annual salary and bonus annual salary. As for the annual salary reward, it is based on the completion of the task indicators of the year, combined with the profit status of the operating unit that year, and employees at different levels will commission the profits of the operating unit in different proportions. At Kelon, the rewards for employees in the marketing system are linked to performance, and certain assessment indicators are given. Both completion and excess can be rewarded, but the degree is different. Employees in other systems implement a dual-salary system. There will also be auxiliary rewards for employees who have made particularly outstanding contributions, such as those who have achieved results in product research and development and industrial design.

Third, red envelope: It is usually decided by the boss. There are no fixed rules. It may depend on the closeness between the employee and the boss, the boss’s impression of the employee, seniority, significant contribution, etc. . Usually not public. Private enterprises are common.

Most Asian companies adopt the second method (variable bonus), and some personnel can also receive red envelope rewards.

In addition, the monthly salary of some private companies is often not linked to performance, but is given back to employees when issuing year-end bonuses. As a result, the weight of the red envelopes is even more amazing, and can reach more than 100,000. Yuan. This not only greatly improves the distribution of year-end bonuses, but also puts forward increasingly higher requirements for the distribution effect of year-end bonuses.

The main forms of corporate year-end bonus distribution are: direct cash payment, shopping card issuance, corresponding physical items, travel incentives, and training incentives. In addition to distributing cash, some companies also include travel rewards, free insurance, car subsidies, house allowances, etc. as part of their year-end bonuses.

In addition, according to the author's extensive understanding, due to the different nature of enterprises, the forms of year-end bonus distribution are also different for major enterprises... Financial securities, electric power, communications, large coal enterprises, large state-owned enterprises , transportation, construction, real estate and some public institutions because their efficiency is relatively good, so their year-end bonuses are relatively considerable.

Problems and misunderstandings that should be paid attention to in the formulation of year-end awards:

The issuance of year-end awards must first reflect three directions: First, reflect the company's annual performance. The advantage of this is that it can encourage employees to care more about the company's interests, stabilize the workforce, and establish a community of interests between its employees and the company. Second, reflect the annual work performance of employees. By conducting year-end evaluations on employees through certain procedures, and then issuing year-end bonuses based on this standard, this standardized assessment method is easier to achieve fairness and justice, with clear rewards and punishments, and can reduce various conflicts and problems caused by the distribution of year-end bonuses. Third, it must be consistent with the performance and incentive plan at the beginning of the year. Reflect the company's commitment and responsibility to its employees.

Secondly, there are three steps to be followed when issuing year-end bonuses. First, review the annual plan and performance agreement. Confirmation of plans and goals is a prerequisite for evaluation. Second, evaluate company performance and employee performance. Avoid the phenomenon of enjoying yourself with poor work performance and feeling resentful if you work hard and have good performance.

Third, calculate and distribute bonuses, formulate new performance and incentive plans, and ensure every step is orderly.

Thirdly, the year-end assessment is also an issue worthy of attention, which is mainly reflected in the following three aspects: First, the performance plan at the beginning of the year must be clear. Only when performance is clear can fairness be taken into account. Third, the annual performance results must be clear. Fourth, rewards and punishments must be structured and consider multiple reward methods, and do not try to accomplish all the results in one battle.

As long as the above issues are well coordinated and attention is paid to the management of daily processes, the year-end bonus will eventually achieve a happy result for everyone.

In order to reduce jealousy, the differences between various departments and individuals should be appropriately considered in the formulation of year-end rewards. The distribution of differentiated year-end bonuses depends on performance appraisal, and a high-quality performance appraisal system is the basis for the successful implementation of the distribution of differentiated year-end bonuses. Therefore, a high-quality assessment indicator system must be developed. A high-quality assessment indicator system should:

1. Assessment indicators must be linked to the company's strategy. This is very important, but it is often easily overlooked.

2. There should not be too many indicators, 3-4 key indicators are better.

3. The indicators should be clear. Clear indicators allow people to know whether they are doing well or not, and avoid the subjective consciousness of the evaluators; at the same time, they point out the direction of employees' efforts.

4. A high-quality assessment indicator system. Employees should be able to test themselves or choose colleagues/customers to evaluate themselves.

5. When setting indicators, not only financial indicators should also include non-financial indicators; for example, customer service should also be taken into consideration (on-time delivery, reduction in returns, customer satisfaction statistics, etc. ).

6. If an individual performs well but does not fit in with the team, then this person's performance appraisal score should not be high.

7. The success of the performance appraisal system is related to whether the company's strategic goals can be achieved. Therefore, everyone should be evaluated, whether they are senior managers or lower-level clerks.

8. When evaluating any employee or department, it needs to be evaluated from multiple perspectives instead of being completely decided by one person (boss).

9. The evaluation results should be accepted by the evaluee and most people in the company without any surprise.

10. For evaluators, the board of directors implements effective supervision. If the evaluator is found to have committed fraud or other acts, upon verification, the board of directors has the right to reduce someone's bonus if the person's behavior is considered to be harmful. Those who harm the company should be subject to certain sanctions. 11. We feel that one year is too long for the evaluation time and bonus distribution time and should be shortened. At least half a year is better. In this way, problems in work and evaluation can be discovered in time and solved in a timely manner.

In year-end bonuses, we should also pay attention to the fairness of remuneration: fairness includes external fairness and internal fairness. Achieving external fairness can make the remuneration packages received by corporate employees more competitive compared with other companies. The company determines the year-end bonus, and if possible, the absolute number can be higher than the industry average, which is very helpful in improving employee satisfaction and loyalty to the company. Internal fairness refers to employees' measurement of the ratio of their own contribution to income and the ratio of other employees' contribution to income. If the two are equal, employees will think it is fair, otherwise it is unfair.

To grasp the principle of fairness, companies can use the following methods to achieve it:

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