In this article me make it short and simple.

Definition

The remuneration system describes the link between performance, qualification, commitment and payment.

The targets:

Mobilization and utilization of the performance potentials of people, resources and organization. Remuneration is an important management instrument.

Key elements:

1. System is simple, transparent and variable (+ / - ) and uniform for all collective agreement employees

2. Qualification and requirements

3. Result orientation (company, division)

4. Coupling to standards for team/employees

5. Achievement of objectives (team / employees)

6. Special bonuses

7. Performance reviews

Level of fulfillment payment

Level 1

The remuneration system is based on a description of requirements and the corresponding needs-oriented qualification for the individual workstation. Service components are partly fixed and partly variable. Target values of the employees are the degree of time and the "front water". Non-systemized, special payment independent of results at company level. No special bonuses.

Level 2

There are several charging systems. Bonus wages and other performance components are partly fixed and partly variable. Linking to performance standards is not practiced. The remuneration systems allow premiums for successful special promotions. Inconsistent, sporadic application

Level 3

Only the premium wage and the time wage exist in production. The first concepts for a uniform payment system have been developed. The remuneration systems are based on a description of requirements and the corresponding needs-oriented qualification related to individual workstations and group work. Service components are partly fixed and partly variable and linked to performance standards.

Level 4

A uniform remuneration system for wage earners has been developed and implemented in a cost-neutral manner. A uniform remuneration system has been developed and adopted for all levels. The basic performance component is linked to minimum conditions (fixed). The variable component is defined and linked to targets. Behavioural characteristics (e.g. compliance with standards) are taken into account. The remuneration system applies bonuses for defined and successful special promotions

Level 5

A uniform fee system has been implemented at all levels without affecting costs. The remuneration system is based on a description of requirements and the corresponding needs-oriented qualification for teamwork (comparison with teamwork). The variable component is defined and linked to targets. Participation in company results, divisional results according to the target agreement.