For automatic interconnection of the bonus with work, the chosen destination interval and bonus period must match. Also make sure the validity date is at the beginning of the bonus period. Depending on the goals, you can activate merit-based bonuses for your employees, which are automatically calculated. To do this, check the staff profile and choose > change > add a bonus. Enter the destination bonus amount for the desired period, select the interval and enter the date from which the bonus will be effective. Click Save to complete the process. In goal agreements, you set target types for similar commission contracts. You can combine these types of objectives with target values, correct values and correction values indicated for the commission contract, period, sub-object and trigger method. There is no doubt, therefore, that the goal agreements for these companies work. However, there is still room for improvement. For a long time, targets and targets have generally been set each year, and this is still the case in some sectors and professions. Most companies continue to use goal agreements, as shown by a 241-size study by Dr.
Heissmann GmbH in 2005. About 90% of the companies surveyed said they used goal agreements. When setting goals, it is necessary to determine whether the achievement of these objectives depends on the individual performance of the employee (individual objectives), the work of several employees (group objectives) or the overall performance of the company (company objectives). A company`s common practice of setting goals is often well below the norms of jurisprudence. Business practices are also often below standard to determine when objectives or objectives are agreed between the parties or set by the employer. This approach to defining staff objectives and objectives is now seen as outdated. Finally, feedback, both positive and negative, should be communicated in a timely manner so that it is clearly understood and that objectives/objectives can be adapted if necessary. 85% of companies reported that the target agreements worked well or were satisfactory to them.
For the company, the definition of goal agreements saves time in the business process. Agreement on global and partial objectives avoids duplication and allows for coordination of processes and tasks. In addition, the coordination of day-to-day business processes can be shortened by clear rules and priorities of employee flexibility. In Germany, workers who have entered into a bonus contract may demand variable pay if they meet their agreed or set performance targets. The amount of variable remuneration if these objectives are fully met is set regularly in the employment contract or by an employer/company committee agreement. What needs to be taken into account? Goal agreements are a management instrument based on the principle of objective management introduced by Peter F. Drucker (1955). At least two parties, usually the employee and his or her supervisor, discuss the objectives to which staff will work over a defined period of time. At the end of this period, both parties consider whether and to what extent the worker has achieved the objectives.
Valid for automated mapping of the objectives set by bonus distribution, the following should be taken into account: However, objective agreements and staff objectives should include a mix of the two to ensure that objectives and objectives are set objectively and not arbitrarily.