Progressive Bonuses for Staff Motivation

Abstract

A progressive bonus system employed at PAO Koks is described: the bonus is assessed on the basis of how many metal structures produced by the corresponding specialized department of equipment repair shop 2 are introduced at the plant. Bonuses stimulate workers to increase their productivity and hence their output of metal structures. That lowers the expense of purchasing such structures from outside suppliers and so meets the goal of any commercial enterprise: to make the maximum profit with minimum expenditure. Increasing the bonus system also increases the mean pay of the workers in the department, thereby improving staff loyalty and reducing employee turnover.