Step 9: Conduct a test run
Test run the latest pay and incentive system by analyzing changes in employee salaries. Compare their incomes with market standards and make appropriate changes. It is desirable that the salaries of employees who have achieved 100% of their goals be increased by at least 15%.
This will stimulate the transition to a system of remuneration based on final results. The increase in the salaries of effective employees should be compensated by a decrease in the salaries of ineffective employees through the reassignment of the bonus fund.
Implementation of a reward system
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Step 10: Discussing the new reward system
Present the project to top luxembourg email list managers and discuss its contents. Make any necessary adjustments based on the discussions.
Step 11: Implementation
Provide all employees (with signatures) with information about the new rules of the wage system. The employer is obliged to notify the staff in writing about the upcoming changes in working conditions at least two months in advance. During this period, do not stop paying wages according to the old system, providing indicators according to the new system. This gives employees the ability to evaluate changes in their own wages, draw conclusions and, if necessary, change their actions or approach to work. The first person of the wage project should be ready for expert support from managers during the implementation.
Step 12: Implementation of the pilot project
If your holding has several enterprises, implement a pilot project reward system at one of them. Check the results, take into account the mistakes and improve the system before implementing it at other enterprises.
Documentation such as a collective agreement, a regulation on the system of remuneration and incentives for personnel, internal regulations, a program for training personnel to implement changes, and questionnaires for assessing employee satisfaction and their needs will serve as important tools for implementing the reward system.