How to plan human resources? Odpri
Last modified: 13.01.2020

Human resources planning is a constant process that goes hand in hand with the development of the corporate strategic plan. Each company must constantly reflect on its staffing needs in quantitative and qualitative terms, answering the following questions: 

  • Does the current organic supply meet corporate needs?
  • Are the potential of the staff fully exploited?
  • Can future staffing needs be predicted?
  • How to find the necessary human resources? 

 

Answering these questions is essential for staff scheduling purposes as they provide a general overview of the current state of the workforce and its possible future developments, allowing the company to draw up a short, medium and long-term hiring plan.

 

For a good programming of the workforce, a company must also carry out a detailed analysis of the following factors: personnel fluctuation, absenteeism and structural reorganization, without forgetting that for an effective programming of human resources, a good dose of realism and flexibility is needed.

Staff fluctuation and absenteeism Odpri
Last modified: 13.01.2020

When planning and organizing staff, two additional factors must be considered: staff fluctuation and absenteeism. 

Fluctuation of personnel means the exit of personnel from the company workforce which can have both objective and subjective causes. The objective causes (fixed-term contracts, retirements, ...) are foreseeable and can be planned and allow to compensate for the lack of staff effectively and quickly, while the exit of staff from the company for subjective reasons (dissatisfaction, inadequate wages , relationships with colleagues, ...) is instead unpredictable and can cause havoc. This is why it is good that the company has good internal coordination that allows it to continue operating normally.

 By absenteeism we mean instead the absence of an employee from the workplace during working hours due to permits, expectations, lack of punctuality or other. Absenteeism is fought primarily with the constant control and monitoring of absences on a monthly or annual basis; in addition to this, it is necessary to identify its characteristics and search for the causes, which can be objective in nature and therefore cannot be controlled, or subjective (psychic and social) and therefore can be managed by identifying the triggering cause and eliminating it.

How to gather information on possible future employees? Odpri
Last modified: 13.01.2020

To gather information on candidates for a job, there are numerous methods: the most common are certainly the application form, the curriculum vitae complete with certificates and certificates, the assessment interview, the psycho-aptitude tests, the references and the medical examination. These methods can be used individually or jointly; below we illustrate its characteristics. 

The application form is a tool that allows you to assess the suitability of the candidate at a glance, as it presents in a schematic and easily comparable way, in addition to the general information of the candidate (name, surname, date of birth, address of residence, marital status, educational qualification) also information about the training and professional path (where, when, by whom the candidate was trained) and previous work experiences (where, how much). It goes without saying that this information is useful and relevant only if truthful, it is therefore good practice to ask the candidate to produce certificates and documents that attest to the veracity of the data. 

The curriculum vitae contains information similar to that contained in the application form, with the difference that in the CV this information is exposed in more detail, but at the same time also more subjective. 

The hiring interview can be useful to get to know the candidate better. In order for the interview to be truly effective, it is important that the interviewer leaves nothing to chance, that he prepares the questions and above all establishes the objectives a priori. During the interview, the interviewer should avoid questions that push the interviewee in a certain direction (such as: "Is it true that you want to work with us?") And should faithfully write down the answers and then use them for the preparation of an interview card to be consult at the time of the final selection of candidates. The interview represents an opportunity to get to know the candidate personally: the interviewer should therefore make sure that he or she feels comfortable, perhaps by asking him some informal questions or offering him a coffee. 

Psycho-aptitude tests are used to evaluate the candidate's aptitude for the role in question, while practical and situational tests are used to evaluate the candidate's specific skills, since they place the candidate in front of a concrete task or analyze his reactions in a situation experimental hypothesis. In the first case, the candidate receives a concrete task to carry out - better if not strictly related to the working environment for which he is applying - in order to have a more complete view of his skills and abilities, while the second method, which given his complexity is usually used only by expert personnel, it consists in placing the candidate in front of the simulation of a problem and according to the adequacy of his answer, the assessor is theoretically able to predict the effectiveness of his work performance. 

A further useful source of information on the candidates may be the references that come from people who have known the candidate in the previous working relationship or during his / her training path. The reliability of the information increases if the examiner personally knows who provides the references. 

Finally, before hiring an employee, it is good to get an idea of ​​his health. Most of the time it is possible to guess at first glance whether the candidate is in good health and able to work, while for more specific information a medical examination is necessary.

Where do we find the most suitable staff? Odpri
Last modified: 13.01.2020

When looking for a candidate for a particular position, it is necessary to inform the highest number of people who could become potential employees and who meet our requirements. This can be achieved by publicizing the vacant job, in order to reach all the suitable candidates concerned and thus guaranteeing the widest possible choice to find the most suitable candidate for the position. In this kind of search for candidates for specific tasks, it is necessary to first define the target group for which the announcement is intended and then define the media through which we will search for the candidates, in order to then create the announcement adequately.

 

If we need the workforce for the operational part, local candidates must be sought, who live near the workplace and should not take more than an hour a day to get to the workplace and go home. For positions that do not require presence at the company headquarters, or for those that require such presence only a few times a week, it is possible to search for candidates in a wider range. If you wish to employ a type of expert who is not frequently found in Slovenia, then candidates should also be sought outside the borders of the state.

 

Employee search methods should also be adapted to the predefined target group. This means that in the search for a local worker we will have to use mainly local advertising spaces. These can be newspapers, bulletin boards, local TV stations, posters and flyers in places where the target audience is likely to be (schools, faculties) and of course employment centers and private employment agencies. Two other fundamental means of looking for new employees should not be forgotten: one is the Internet, therefore online advertising and search for candidates through the virtual media. The online advertisement can be published on the company web page, on a Facebook profile or you can search for candidates on the web pages of advertising agencies. The other, more traditional, way is to spread the word among friends and acquaintances.

How to attract the best collaborators? Odpri
Last modified: 13.01.2020

A company can use various methods to recruit and attract new staff, starting from the start-up of young people to work, to collaboration with schools and universities and to the formation of its own recruitment network; it can also incentivize employees to find new collaborators and offer scholarships. The search for new staff can also be carried out directly by means of job advertisements. The job announcement must clearly present the application requirements and must provide an exhaustive description of the job position to ensure that only those who really correspond to the profile requested respond to the job. The announcement must also describe the advantages offered by the position (remuneration, benefits, training opportunities, possibility of professional advancement, pleasant working environment, etc.). The ad text must be simple, clear, concise and must not make false promises.

Some advices:

 

  • the choice of the qualification must be accurate in order to attract the attention of the candidates;
  • the first few lines must be interesting and attractive to actively promote the job position;
  • the sentences must be concise and must contain the necessary information without being saturated with it;
  • words difficult to understand are to be avoided;
  • all relevant information must be included;
  • the announcement must comply with current placement regulations;
  • the ad must be graphically and aesthetically attractive;
  • the text must be linguistically correct;

you can increase the visibility of the ad by increasing its size, publishing it in sections not intended for this purpose or providing it with an unusual design.

What should a good job ad contain? Odpri
Last modified: 13.01.2020

First point: job title

 

The title of the announcement must be self-explanatory, that is, sufficient to frame the job position by itself, while the body of the text must contain additional important information for the potential candidate such as the description of the main tasks and responsibilities, the positioning in the company, the working hours (full time or part time), the number of vacant positions and, if possible, at least the approximate value of the salary offered.

 

Second point: Strengths of the position

 

Candidates want to know the characteristics of the insertion area and the hierarchical relationships of the company and are immediately interested in knowing who they should refer to within the position held and who instead they should refer to them. At the same time, candidates try to understand if the role can be a source of personal satisfaction, if it offers the possibility of making new experiences or corresponds to their ambitions for professional advancement.

 

Third point: Key requirements

 

It is good practice to indicate in the announcement 3 or 4 key requirements for the selection of candidates, in order to allow them to evaluate for themselves whether or not they correspond to the profile sought. With this first skimming, recruiters are allowed to receive only targeted applications; if, on the other hand, more candidates are to be assessed, more generic criteria must be set, naturally taking into account the situation on the labor market in the reference sector.

 

Fourth point: The company and / or the organizational unit

 

Potential candidates are interested in knowing the company structure and mission, therefore it is advisable to provide a brief description of the company's strengths, objectives and strategies.

Fifth point: Contacts and deadline for submitting applications

 

In the event that the candidate needs further information or clarification, it is good that he has the contact details and the name of a manager to whom he can contact. It is also a good idea that the announcement also contains the deadline for submitting applications to allow the candidate to have the time necessary to collect the information requested, prepare the documentation and prepare for an interview.

How to choose the most suitable collaborator? Odpri
Last modified: 13.01.2020

In recent times, the belief that the most intelligent candidates do not always prove to be the best employees and the tendency to hire rather candidates who share the values ​​of the company and therefore manage to integrate better in its is increasingly affirming. organizational culture, obtaining the first results shortly after joining the staff. Before proceeding with the selection of new collaborators, the needs must be defined and the characteristics of the vacant position must be identified: duties, tasks, responsibilities, skills, means, working conditions and physical skills required. Once these data have been collected, the ideal profile for this role is outlined both from a professional point of view (educational qualifications and qualifications, work experience), and functionally (knowledge acquired formally or informally, e.g. foreign languages, computer skills), skills (negotiation skills, precision, speed) and psychophysical characteristics (kindness, creativity, inventiveness, endurance, physical strength).

 

Once this information is obtained, the potential candidates are skimmed and the most suitable one is selected using the tools for the selection of collaborators (interview, test).

What are the tools for selecting new collaborators? Odpri
Last modified: 13.01.2020

Studies show that the most effective way to get detailed information about job applicants is the so-called structured interview, followed by situational tests and practical tests. In reality, the most used method is the simple interview.

 

A human resources selector accesses the first information on the candidates through the application form, from which the generalities, educational qualifications and other formal and non-formal competences can be found, attested by specific attached documentation (diploma, certificates, medical certificate) and references provided by professors, organizations or previous employers). Further useful information can be obtained from the CVs, in which candidates also enter information not expressly requested in the application form.

 

Of all the tools used by companies to select human resources, the most objective and standardized ones are certainly the tests for personnel selection. They allow the candidates' personal and professional characteristics to be defined as precisely as possible. The tests are reliable, which means that if they were used twice on the same candidate, other conditions being equal, they would have the same results, and targeted, that is, they measure exactly the characteristics required.

Advantages and disadvantages of personnel selection tests

ADVANTAGES
DISADVANTAGES

they guarantee objective comparability of the candidates

they can be circumvented

they offer reliable results on the candidate's personality and skills

if they are not targeted they cannot measure the candidate's real attitude

they avoid the partiality, corruptibility and prejudice of recruiters

sometimes they do not measure the qualities that are truly indispensable to fill the role

offer an overview of the candidate

 

Nevertheless, the most frequently used method for selecting staff remains the interview. In fact, it is the only tool that allows you to collect information on the candidate in an immediate and flexible way, especially if it is more detailed information that was not collected in the previous selection phases. The interview allows the interviewer to provide the candidate, on request or on his own initiative, with further information about the organization, employment and working environment.

Job interviews: advice for the interviewer Odpri
Last modified: 15.01.2020

The job interview is still one of the most used methods for selecting personnel and this above all thanks to its practicality and simplicity of execution and for the possibility of direct contact with the candidate. However, its simplicity may prove to be a double-edged sword, as it induces the interviewer to think that the method is so simple that it does not require any preparation. In fact, not infrequently, interviews are conducted by people without an adequate professional base. Mistakes made by an interviewer during an interview can cost the company dearly; it is therefore good that he does not get lost in any chat with the interviewee, but follows a pre-established path that is divided into three main phases:

  1. Phase of organization and preparation of contents

At this stage the interviewer must:

 

  •     acquire all the information relating to the vacant position and the required profile
  •     analyze the information on the candidate he already has
  •     define the criteria for assessing the candidate's requirements, which must be quantifiable and pre-included in the applications
  •     arrange the questions in an order that favors a fluent and effective interview
  •     anticipate possible questions from the candidate and prepare to answer them correctly
  •     define the duration of the interview, guarantee a peaceful and welcoming environment and prepare the interview form in order to        have enough space to write down the answers

 

 

  1. Realization

 

The interviewer receives the candidate with a smile, greets him and introduces himself, without forgetting to briefly illustrate the purpose of the interview.

 Some tips for the interviewer to effectively conduct a hiring interview:

 

  •  The interviewer must pay attention to his and the candidate's non-verbal communication.
  •  The candidate must speak as much as possible. The relationship between the candidate's words and those of the interviewer should   be approximately 70:30.
  •  The interview should be at least partially structured to allow greater comparability between the candidates. As the candidate          speaks, it is good that the interviewer nods, shows interest in what is being said, expresses himself in a relaxed way, is leaning     backwards, avoids expressing disappointment and exposing his opinions and is silent to induce the candidate to explain better.
  •  The interview should be formal, but at the same time friendly for the candidate to relax and the interviewer to have more      information about him.
  •  Questions must be asked positively and affably.
  •  As you proceed with the questions, note the answers in the appropriate form.
  •  Once the interview is over, the interviewer informs the candidate of the continuation of the selection.

 

  1. Analysis

 

After the conclusion of the interview, the interviewer carries out an analysis of the progress, content and results of the interview, he also makes proposals and makes decisions. To this end, it can use the specific form - the interview form - which allows a more objective assessment of the candidates.

How to insert a new employee? Odpri
Last modified: 15.01.2020

After hiring a new employee, you must prepare him or her properly for work in the company. Regardless of the level of skills and abilities, anyone needs some time to become familiar with the new job and to acclimatise. The insertion in the company can take place in different ways and with the most varied timing: for this reason the companies change the process from time to time based on the characteristics of the job and the new employee. The situation will obviously be different depending on whether you insert a trainee or an experienced collaborator. The insertion can have a more or less long duration, which can range from a week or a month up to six months or an entire year, depending on the level of difficulty of the job, the skills of the new employee and his previous experiences. There are various insertion processes, just as there are various uses, each different from the other.

 

Each insertion process must be written and must contain the indications on the obligations of the tutor and the new employee, who at the end of the path must sign a document containing all the information he received during the insertion process. The tutor must plan the placement program, which takes place jointly with various training activities, such as for example participation in courses for the use of specific IT programs, seminars, courses of various kinds, meetings, etc. The human resources department has no way of directly affecting the way in which the guardian performs his functions nor even his innate abilities to motivate the new employee and to carry out the didactic action, however the human resources department can, with training actions targeted, helping managers incentivize guardians to recruit new employees more effectively through the use of a more proactive and less rigorous approach. The insertion in the company is not in fact a process aimed solely at providing the new employee with the notions necessary for the correct performance of his professional duties in the strict sense, but his purpose is also to make the new employee familiar with the company, the his story, his colleagues and their small daily rituals such as the coffee break.

What stages of training do we know? Odpri
Last modified: 15.01.2020

The staff training process is usually divided into three main phases that begin with an analysis of the training needs aimed at identifying the lack of specific knowledge and skills within the staff, continue with the planning of the training interventions and with the their realization and end with the evaluation of the results. The larger companies manage these three phases with the help of human resources experts, managers and external consultants. 

In the first phase, also called the observation phase, the skills of the individual employees are identified and must be developed to meet the company's future needs. In the second phase, also called the planning phase, the analysis of the needs is translated into specific training objectives and the learning strategies are chosen, which can be frontal lessons, staff rotation, consultancy or tutoring. In this phase, the contents and the teaching material are identified and the training intervention is carried out. The third step is to monitor and evaluate the results. In this phase the success and effectiveness of the training intervention are measured, answering the following questions: 

  • Did the staff actually learn something new?
  • Have you learned to do your job better?
  • Did the skills acquired have a positive impact on work and on the company (in terms of reducing labor costs)?
  • How could the effectiveness of the training intervention be further increased? 

 

If the evaluation of the training intervention is effective, it brings out numerous proposals and solutions for future interventions that will further improve professional performance and the process of introducing new human resources into the company

First phase

Second phase  Third phase

OBSERVATION

DESIGN AND REALIZATION  MEASUREMENT OF EFFECTIVENESS 
Analysis of training needs

Goal setting
Development of criteria for the evaluation of results

Definition of training strategies
Development of material and contents for the training 
Implementation of the training

Evaluation of the results of the training

How to retain the best collaborators? Odpri
Last modified: 15.01.2020

In order to retain the best collaborators in the workforce, it is necessary to offer them favorable working conditions, to know how to motivate them and to reward them (not only in a monetary sense) for the results achieved. 

A common mistake made by managerial staff is to distribute variable bonuses among employees fairly. In reality, by doing so, albeit in good faith, you do the most unfair thing. Whenever an executive distributes positive feedback, recognition, productivity bonuses and various incentives equally among employees, it actually penalizes those who have worked harder and better than others. In fact, in the eyes of employees, it is an injustice to treat those who commit themselves and give their best and those who do only the bare minimum equally. 

According to experts, there are numerous strategies for keeping staff in the company; however, almost all of them can be reduced to a single common denominator: the way employees are treated. If these are treated with the same regard with which customers are approached, then workers will feel inserted, satisfied and satisfied to be part of the company. If you want not only loyalty from them, but also commitment and motivation, you need to make sure that they are part of the decisions, invite them to contribute to the strategic business plan and the preparation of other important documents. In this way they will work more enthusiastically and will be more collaborative. 

The staff must also be involved in the modernization of the company and in the design of an evaluation and awarding system, in the systematization process of the jobs and in the introduction of a skills model. To this end, it may be a good idea to resort to specialized external professionals, who are often able to get closer to the staff. 

To retain staff, it is also important not to underestimate the role of managers. It often happens that an employee leaves the company because of an executive. In order to retain the best human resources in the workforce, therefore, the commitment of the top management and of the individual executives is necessary, who, however, often, despite being very prepared in their field, have insufficient knowledge regarding the correct management of personnel. It is precisely this deficiency that must be made up for.

How to evaluate staff performance? Odpri
Last modified: 15.01.2020

The assessment of worker performance is an absolutely indispensable process within a company and the feedback obtained there is useful in various contexts. When an employer evaluates the performance of his collaborators, he does so mainly because he wants to know if he has made the right choices, if he has selected the most suitable worker, if the performance of the worker improves, if the position is suitable for his abilities and if it deserves a higher salary.

 

Before starting the evaluation of staff performance, it is necessary to define the evaluation methodology, how often it will be performed, who will be the evaluators (to be subjected to targeted training) and who will be assessed, who will be responsible for deciding on the execution methodology, what will be evaluated and what will be the usefulness of the results.

 

Performance evaluation is carried out most of the time by means of an interview which can possibly be integrated by other evaluation tools. The interview consists of a free conversation between the employee and his / her supervisor and offers an important opportunity for discussion between worker and manager on the objectives of the organization on the one hand and the situation of the workers, their expectations, their career plans and anything else on the other. The ultimate goal of the performance evaluation is to evaluate the results obtained by the worker in the period under consideration and to hear his opinion and his proposals on how to improve his professional performance. The interview is also aimed at defining education, motivation and consultancy needs and at defining the tasks and objectives for the subsequent period. Performance evaluation is a very effective tool, as it offers both sides useful information to eliminate errors and solve problems, improve performance and mutual relations, as well as optimize management and, more generally, contribute to business development .

Examples of questions that a superior could ask the employee during the assessment interview: 

  • What have been the results obtained in relation to the objectives assigned in the past period?
  • Were the changes that the assessor committed to make in the previous assessment period (improvements, development, training ...) made?
  • Did the assessor have difficulties in carrying out the tasks assigned to him? If yes, which and how can they be eliminated?
  • Does the valued exploit his potential and his knowledge at the highest levels?
  • Are you willing to accept new or additional responsibilities in the workplace? Which?
  • If the valued accepted new responsibilities, would there be advantages for him and for the company?
  • What should be the path to follow according to the future professional development of the employee? 

 

The evaluation criteria can be of a quantitative or qualitative nature and the method of execution should be based on comparability, so that employees who occupy the same positions can be directly compared and compared to the results of employees of past years. Evaluation scales, direct comparison systems, labeling and critical points can also be developed.

How to motivate staff? Odpri
Last modified: 15.01.2020

Motivated staff will not only work better, more effectively and faster, but will also be more loyal, less absent (e.g. due to illness), less inclined to leave the company (with consequent decrease in staff fluctuations), it will achieve results better, he will be less stressed, he will create a positive atmosphere in the company and he will be more gratified in his private life. 

The first step to take to encourage employee motivation is to create an environment that is not hostile to motivation by eliminating demotivating factors and avoiding elements that create discontent among collaborators and managers. Such demotivators can for example be inadequate work environments, absence of light in the workstations, bureaucraticism, malfunctioning computers, poor cleaning and so on. 

After eliminating these elements, you can move on to motivators in the strict sense. These will stimulate employees to invest in their work not only their time but also their energies. The motivator par excellence is considered by many to be money, however all studies show the opposite. Of course we all work for money and it is a mistake to underestimate its importance. An honest salary is the basis on which to build a successful company that hires and retains its best staff: therefore, you can start talking about staff motivation only after having reached a salary that guarantees a decent life. Nonetheless, mere economic feedback certainly does not lead to giving one's best, and higher remuneration can be motivating, but only for a limited period of time. 

Excessive rule enforcement also has a demotivating effect on staff. Of course, a healthy dose of order is indispensable in an organization, however it is good practice that there is a finite number of rules, possibly established in consultation with the staff: constant openness to dialogue and willingness to accept proposals are in fact a good formula to have respect and support from employees. 

An important motivator is also represented by good management. Clear expectations, respect, incentives and frequent feedback, these are the key factors. Time, thoughtfulness and gratitude must also be dedicated to employees. Employees should be praised and rewarded where this is appropriate and deserved, however any appreciation should be expressed only if truly sincere. Workers should also be given greater autonomy and the opportunity to grow personally and professionally. It is also important to maintain an open dialogue with employees and make them feel an active part of the company. 

To get them motivated good practices are also: 

  • Promote socialization and teamwork among staff
  • develop goals and challenges for all staff
  • add a pinch of leisure and change to routine jobs
  • not to bind employees in the way they perform their work
  • tolerate mistakes and avoid criticism during the training process
  • encourage employees and make them understand that they appreciate the job well done

      promoting empowerment and leadership opportunities.

What are the motivational factors? Odpri
Last modified: 15.01.2020

Motivation is given by the set of purposes that push the individual to act and actively engage in what he does. Motivational factors are the elements in which employees work better and with more energy, driven by the desire to do. What are these factors?

 

  • Economic feedback: remuneration as a direct means of satisfying needs can be a cause of satisfaction or discontent. A high salary does not automatically imply that the worker will work more and better, but with an unworthy salary the worker will not work at all.
  • The usefulness of the work: it is fundamental, since the employee will be more involved in his work if he sees a real utility in what he produces and is aware of the importance of his work.
  • Know the purpose of your work: if this is not known or is non-existent, the desire to work is lacking and performance worsens. For this reason, the purposes of each individual assignment must always be known and clearly defined.
  • Work environment: unsatisfactory social relationships, hostile environment and difficult physical conditions have negative effects on the worker.
  • Praise and reproach: two levers with which it is possible to motivate the workers, paying particular attention not to result in the offense, otherwise a deterrent and far from stimulating effect is obtained.
  • Clear instructions: one of the most basic and effective factors for obtaining a good performance. The boss must know exactly what the worker is doing and explain it clearly.
  • Competitiveness: there are two possible forms:
  •                the worker competes with himself, which can be effective where you want the worker to exceed the stated objectives
  •                the worker competes with others, which can be effective if employees with the same level of ability compete.

How to reward employees? Odpri
Last modified: 15.01.2020

An effective method of motivating employees is also to reward particularly good performance: in this way, employees are encouraged to successfully pursue the objectives set. A good performance must be praised with sincerity and timing. Show respect, sympathy and satisfaction with the work of your best employees. Praise and reward them where this is appropriate and deserved. This will be an important stimulus for workers, as you will make them understand that they are an important figure within the organization. 

To demonstrate esteem to employees, it may also be sufficient to reward them with benefits that are not purely economic in nature or make their work environment more comfortable and welcoming. Your employees spend too large a portion of their time and lives in the workplace, so make sure they feel good. Many things can be improved in a simple and relatively inexpensive way: tastefully and comfortably furnished offices, equip them with modern equipment, fairly large desks, LCD screens, large windows that illuminate the environment with natural light, put them free soft drinks available etc. Other possible stimulating benefits may be, for example, additional holiday periods, flexible hours, company car or free entrance to gyms or swimming pools. 

An effective award system cannot disregard the following findings: 

  • The material bonuses must be correlated to the performance indicators on which a worker or a work group can directly affect their work.
  • There must be a clear correlation between the performance and the prize.
  • The reward system must focus on the positive and not the negative consequences of the behavior of the worker in the workplace.
  • The differences in the material bonuses of employees who perform best and those who perform worst must be sharp enough to stimulate worker productivity.
  • The material premiums must be proportional to the commitment invested and must be fair.
  • The productivity bonus must be large enough to be attractive and have a stimulating function for the employee.
  • The worker must be rewarded immediately after improving his professional performance.

What types of incentives are there? Odpri
Last modified: 15.01.2020

Worker incentives can be of two types: economic incentives and other incentives. Each company uses its own remuneration system and offers different levels of remuneration according to the type of employment relationship. For a worker, the first form of economic incentive is undoubtedly the salary. This can consist of a fixed part and a variable part. 

The fixed part, also known as the basic wage, is the direct consideration for the service provided by the worker and has two main purposes: the first is to attract or retain workers through adequate remuneration in a labor market marked by strong competitiveness, the second, however, is to assign a certain level of remuneration according to the level of complexity of the job. 

Some companies also make use of other incentives, such as for example the possibility of owning company shares, bonuses for exceptional services, etc.

However, there are also non-economic reward systems. These have a minor role, but not for this negligible. Non-economic incentives allow the employee to develop their skills and achieve high career goals. These types of incentives include: 

  • praise (they have a positive influence on the individual and encourage him to work better and better gratifying him, motivating him and making him feel satisfied)
  • awards
  • career advancement (the employee progresses professionally if he is good at his job, achieves goals, achieves results even above average and is characterized by a marked diligence)
  • possibility of personal and intellectual growth and possibility of career progression

      possibility of participation in decision-making processes.