How to get more money in the year-end assessment? - Huxiu.com#
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Highlights#
The year-end bonus is the combination of performance incentives and values. ⤴️ ^3aaf4009
S, what is the ratio for performance responsibility positions? Generally, it is a ratio of 6:3:1. ⤴️ ^73c011a7
T, what is the ratio for professional capability positions?
Generally, it is a ratio of 8:1:1. ⤴️ ^6f9f067d
O, what is the ratio for support service positions?
Generally, it is a ratio of 9:0:1. ⤴️ ^2c75a92a
You need to find a way to achieve your goals. You should not just follow my instructions, but be able to arrange and decompose tasks, give yourself instructions, and wind yourself up. ⤴️ ^1f8e3d76
There are usually two methods for designing redundancy:
- Provide higher compensation
Some companies offer higher compensation for employee stability.
In the market, the salary for this position is approximately 200,000 to 250,000.
I can offer you 250,000, or 270,000, or even 300,000.
In this way, talents can be retained.
- Recruit a certain proportion of additional people
Sometimes, you may feel that the company always has a few extra people. If you cut 20%, the company's operations will not be greatly affected. ⤴️ ^90e3e5f5
The person who creates the greatest value receives the greatest benefits. The strong should have the greatest benefits. ⤴️ ^38c94a1d
How to get more money in the year-end assessment?#
This article discusses the logic and principles of salary distribution in a company. The author emphasizes the importance of salary, bonuses, and year-end bonuses, as well as the salary ratios for different positions. At the same time, the article emphasizes the importance of goal management and the purpose of designing redundancy in a company.
• 💰Salary, bonuses, and year-end bonuses are the three amounts of money that every employee should receive in a company.
• 🎯Goal management is the key to measuring employee performance, not just task completion.
• 📈Companies design redundancy to support development, maintain vitality, and foster innovation.
When I am not on a business trip, I have meals and chats with my colleagues at the company. We talk about topics that interest us and hope to help them grow.
A few days ago, I conducted an internal closed-door training session for them, with the theme: Company's Allocation Mechanism.
That is: how to distribute money.
I hope they can understand the logic of the real world and understand the company's ideas.
This article will discuss: how does a company actually distribute money? How can we get more money?
I. Everyone has three amounts of money
In a company, everyone has their own annual salary.
But what is included in the annual salary package?
It is the three amounts of money that everyone should receive: salary, bonuses, and year-end bonuses.
Annual salary = salary + bonuses + year-end bonus.
The first amount of money is the salary.
You may think that the salary is the price you are paid and measures your worth. This is a normal idea, but I'm sorry, it is also a wrong idea.
The salary is the price for the position, determined by the importance of the position.
The salary of a Vice President of Sales is almost certainly higher than that of a receptionist.
This has nothing to do with whether you graduated from Tsinghua University or Peking University, whether you have read 500 books, or the depth of your age and experience.
The salary is for the position, and behind the position is responsibility. The greater the responsibility, the higher the value delivered, and the higher the salary. This is the true logic behind it.
The second amount of money is bonuses.
Bonuses are given for exceeding performance. Bonuses are used for motivation.
When you achieve results beyond expectations, you should certainly receive a bonus.
The third amount of money is the year-end bonus.
The year-end bonus is not given randomly. It is given for behavior and values.
What does that mean?
Some people may go to extremes or even resort to any means to achieve performance.
Such things are absolutely not allowed.
Therefore, there must be another amount of money as a check. This amount of money is the year-end bonus.
If you are not honest, if you make excessive promises, if you disrupt the team, a portion of your year-end bonus should be deducted.
==The year-end bonus is the combination of performance incentives and values.==
This is the three amounts of money that any employee should receive in a company.
II. How should the three amounts of money be distributed?
Adjust the specific ratios of these three amounts of money based on the characteristics of different positions.
In any company, there are generally three types of positions: STO.
- S=Sales, also known as performance responsibility positions. For example, sales, business development.
- T=Technology, also known as professional capability positions. For example, editors, engineers.
- O=Operation, also known as support service positions. For example, finance, administration.
The distribution ratios for each position are different.
==S, what is the ratio for performance responsibility positions? Generally, it is a ratio of 6:3:1.==
This means that if the annual salary is divided into 10 parts, 60% is the base salary, 30% is performance bonuses, and 10% is the year-end bonus.
For example, if the annual salary is 200,000, the base salary is 120,000, averaging 10,000 per month.
The performance bonus is 60,000, averaging 5,000 per month.
The year-end bonus is 20,000.
==T, what is the ratio for professional capability positions?==
==Generally, it is a ratio of 8:1:1.==
This means that if the annual salary is divided into 10 parts, 80% is the base salary, 10% is performance bonuses, and 10% is the year-end bonus.
For example, if the annual salary is 300,000, the base salary is 240,000, averaging 20,000 per month.
The performance bonus is 30,000, averaging 2,500 per month.
The year-end bonus is 30,000.
==O, what is the ratio for support service positions?==
==Generally, it is a ratio of 9:0:1.==
This means that if the annual salary is divided into 10 parts, 90% is the base salary, no performance bonuses are provided, and 10% is the year-end bonus.
For example, if the annual salary is 160,000, the base salary is 144,000, averaging 12,000 per month.
The year-end bonus is 16,000.
Why do STO positions have these specific salary distribution ratios?
Why do positions closer to S have a higher ratio of bonuses? Why do positions closer to O have a higher ratio of base salary?
Because people closer to performance need to "start low and go high".
They need higher bonuses to motivate them to achieve performance.
People relatively far from performance need "high salary for integrity".
They need higher base salary to provide a sense of security and work with a stable mindset.
Therefore, each amount of money for each position has its own logic.
III. Why should I give you money?
What do employees rely on to receive money in a company?
They rely on goals.
They are managed based on goals and money is distributed based on goal achievement.
I told my colleagues at the company that our company's system must be related to goals.
In other words, I won't give instructions, I will only provide goals.
After managing for so many years, some things have deeply ingrained in my blood, and one of the most important things is: goals.
If one day, I assess you based on tasks and actions completed, then there must be something wrong with me.
I will only assess based on goals.
==You need to find a way to achieve your goals. You should not just follow my instructions, but be able to arrange and decompose tasks, give yourself instructions, and wind yourself up.==
I am not a timekeeper, I am a clockmaker.
You are not here to complete tasks, you are here to achieve goals.
If the goals are not well-defined, it is because of my limited intelligence and experience. We can discuss and please understand.
But if it is a goal that we both agree on, what is posted on the wall must be achieved.
And precisely because we are facing goals, not tasks, we can remain flexible and confront changes.
What happens when facing tasks? Today I have these 5 things to do. What about tomorrow? If the boss hasn't assigned tasks, then I won't do anything.
What happens when facing goals?
That mountain must be conquered. Today we plan A, tomorrow we implement plan B, always changing but always moving towards the mountain.
Therefore, do not expect stability, do not think that you can shield changes outside the company, or shield them from work content.
I can't do it, and neither can you. No one can do it.
Therefore, we must face goals. If we need to break formation, we break formation. If we need to charge forward, we charge forward.
Because in the real business world, those who complete "tasks" may die. Only those who achieve "goals" may win.
Only by winning, can we share the money. Those who die, are dead.
IV. The true energy cannot be dispersed
When there is a salary system and goal management, everyone will start running on their own. Only then can the company develop.
However, from the company's perspective, it also has its own concerns. What if this person leaves? Who will take over their business? How can the company continue to develop steadily?
Therefore, some companies will allocate a little more money and design some "redundancy".
==There are usually two methods for designing redundancy:==
==1. Provide higher compensation==
==Some companies offer higher compensation for employee stability.==
==In the market, the salary for this position is approximately 200,000 to 250,000.==
==I can offer you 250,000, or 270,000, or even 300,000.==
==In this way, talents can be retained.==
==2. Recruit a certain proportion of additional people==
==Sometimes, you may feel that the company always has a few extra people. If you cut 20%, the company's operations will not be greatly affected.==
Why?
Because a deliberate surplus of people has been recruited.
When I first started my business, I was very restrained in recruiting. Each person had their own responsibilities and tasks, and sometimes one person had to do the work of 1.5 people.
But today, with the development of the business and changes in personnel, we need some redundancy to support the company's better development.
So, what are these redundant people doing? Are they idle?
The company does not keep idle people.
They will become excellent bench players, explore new businesses, and innovate.
I told my colleagues at the company, why do many people talk about "internal competition"?
It is because there are fewer opportunities within the organization.
When everyone's focus shifts from threshing to dividing the grain, there will be competition unrelated to creativity and productivity. That's when internal competition occurs.
Where do opportunities come from?
Opportunities need people to explore. They need people to create.
Therefore, the company needs more people. Only in this way can there be more opportunities and room for promotion.
If a company always has only 10 people, it may be quite scary.
Because you will find that you have no room for promotion and no possibility of change.
Therefore, no matter who you are, you cannot be idle in the company. This is how we can develop.
I have my own personality, preferences, and problems. I also hope that everyone can clearly understand my thoughts, the company's direction, and the team's management style.
I am someone who cannot stand idleness.
This busyness does not mean that you have to work overtime every day, but rather, you need to take responsibility for your commitments and life.
Always do something for the company or for yourself.
If a person is always idle, lying down, or paralyzed, they will lose their vitality.
Especially in entrepreneurship, it relies entirely on a breath of energy.
When idle, this true energy dissipates. When it dissipates, it may be wasted and can never be regained.
V. Principle: The strong should have the greatest benefits
After discussing the salary system, goal management, and my values, I would like to share one more principle.
This is probably the most real principle in the business world: The strong should have the greatest benefits.
What does that mean?
Let me give you an example.
Suppose the total personnel budget for the company next year will increase by 10%, from 100 million to 110 million. How should the additional 10 million be distributed? Should everyone receive a 10% increase?
Of course not. This additional 10% will definitely not be evenly distributed.
There must be a gap.
Perhaps someone will only receive 100,000, someone can receive 1 million, and someone can receive 8 million.
Why?
Because for a company to develop efficiently, it needs to allow smart people to earn more money.
Those smart people will use their imagination and creativity, their diligence and talent, to create more value.
Therefore, they should naturally receive more.
How many ordinary people can one truly outstanding person replace?
10? 50? 100?
I believe it is 300.
Therefore, if everyone's salary is too evenly distributed, the company will lack vitality.
The final result should be that some people earn much more than others.
This is bound to happen.
I need to protect the strong from being taken advantage of by the weak.
I don't know if you can accept it, but I believe this is a principle of the business world.
Therefore, this is also the principle of how we distribute money: ==The person who creates the greatest value receives the greatest benefits. The strong should have the greatest benefits.==
All system arrangements are derived from this principle based on my limited experience and intelligence.
Any system arrangement that violates this principle is definitely my fault. It means that my experience and intelligence are not enough.
I will apologize for my mistakes and firmly modify and optimize the system.
If I refuse to correct it or waver in the face of this principle, you can complain or even leave me.
We also achieve mutual recognition and success because we share the same principle system.
Conclusion
Therefore, the business world has its own logic for distributing money, and companies also have their own logic for distributing money.
There is a pattern in how money is distributed.
I told my colleagues: The stronger you are, the more you will receive.
But what does "strong" mean?
Strong means being scarce.
The scarcer you are, the more valuable you are, and the more money you can receive.
So, if I were to give one piece of advice, it would be to do everything possible to grow and make yourself scarce.
In an exam, someone scores 98, someone scores 100. You may think they are similar.
But there is a saying:
You scored 98 because your ability is only worth 98.
He scored 100 because the full score is 100.
I strongly agree with this.
The difference between people may seem extremely small, but in reality, it is immensely huge.
If you can achieve 80, you won't make much money. Achieving 90 may earn you some money. Achieving 99 can earn you a lot of money. But someone who achieves 99.9 can earn 100 times more than someone who achieves 99.
I hope you can understand this principle.
Wishing you scarcity.