🤔Designing 'smart salaries'

About the service

Salary is the “gene of the company" which, upon examination, reveals much about the overall "health" of the organisation. The extensive experience (since 1993) of TRIZ-RI specialists in consulting indicates that there is scarcely any consultancy work that does not involve the creation of salary models for employees and/or the establishment of key performance indicators.

How the design process unfolds

Step 1. Evaluating employee incentives: identifying issues and unproductive behaviors

Initially, we assess the current incentive systems, including identifying work areas where employees:

• Become indolent;

• Commit irritating errors, among others;

• Replace significant, yet challenging tasks with psychologically easier routines;

• Extend deadlines under the pretext of frequent, convenient tasks;

• Show reluctance to think or take initiative;

• Bewitch tasks (complicating work to avoid it).

Step 2. Defining outcome criteria for work

Subsequently, we define and formalise the criteria for outcomes from the departmental and individual work.

Step 3. Solving 'unsolvable' employee motivation challenges

In parallel, we address issues related to employee motivation, even those deemed "insoluble". For instance:

• The challenge of directly linking each outcome to sales.

• The profit percentage often does not correlate with task complexity, and lucrative deals can lead to employee complacency.

• Employees perform a variety of tasks; how can these be integrated into a unified, equitable salary formula?

• The question of whether employees should receive bonuses for tasks they are expected to perform.

• Strategies for motivating employees who do not interact with clients.

• Ways to ensure the oversight of accountants (and other financial departments) is manageable and transparent.

• The importance of evaluating not just the employee's contributions but also their personal qualities.

• The necessity of considering the costs incurred to achieve results.

• The qualitative aspects of work output (when the work is creative in nature).

• The reality that no matter the criteria established, incentives may be ineffective if they cannot counteract theft.

• The selection of performance criteria must account for fluctuations.

• The dependency of outcomes on internal and external conditions. How should we proceed without penalising the blameless?

• The uncertainty over what enhances performance, given that employees are already exerting maximum effort.

• The diversity among employees in terms of newness, experience, and qualification levels.

• The natural variation in performance among employees under identical conditions (Ceteris Paribus); such is human nature.

Step 4. Designing the 'Smart Pay System Rewards'

We devise a system of intelligent remuneration that facilitates the "natural selection" of diligent and competent employees.

Step 5. Strengthening the 'Smart Pay System Rewards'

Furthermore, we formulate recommendations to bolster the wage system through:

• Administrative measures,

• Corporate standards,

• Quality checklists,

• Incentives that foster initiative and reduce excuses.

Step 6. Creating 'Salary Calculators'

We create user-friendly templates ("salary calculators") that outline performance criteria, evaluate bonuses, apply penalties, and draw conclusions.

Step 7. Guidance on implementation strategies

We will provide comprehensive guidance on the implementation of these cutting-edge pay frameworks. From the initial setup of 'salary calculators' to the seamless integration of the AI Advisor into your payroll system, we'll provide step-by-step guidance, best practice and ongoing support. This not only ensures a smooth transition, but also maximises the effectiveness and acceptance of the new pay system by all stakeholders.

Step 8. Introducing 24/7 'Smart Salary AI Advisor'

We will create an AI assistant advisor who will be well trained in this particular smart salary and ready to answer any questions at any time.

What You get

For each pay structure, you will receive a highly-trained artificial intelligence, adept in exactly this one smart salary model and capable of elucidating it in detail to both managers and employees.

Furthermore, you will obtain:

Pay models as templates in spreadsheet format, functioning as a salary calculator where:

• Preliminary examples are provided (usually for a single employee, covering one or two tasks) to highlight potential mistakes or infractions the employee could make.

• There is an automatic calculation of these mistakes or infractions.

• Necessary documents are provided in advance (such as reports, CVs, forms, copies, etc.) that the employee must prepare within a given timeframe, along with a list of additional duties and tasks to be completed.

• An automatic report on efficiency is generated, monitoring compliance with deadlines for submitting documents and completing tasks.

• The criteria upon which employee salaries are based are defined and established.

• Additional bonuses and premiums are included.

• The importance of each criterion and bonus is explained in detail.

• Threshold conditions for earning various bonuses are set.

• A comprehensive collection of all efficiency criteria for employees is compiled, triggering an automatic calculation.

• Includes detailed explanations and methodological guidance from live experts.

Developers

Alevtina Kavtreva

Alevtina Kavtreva, "TRIZ-RI Group" Мaster of management, expert developer of motivation systems and salaries, expert in TRIZ and business processes optimisation. Experience in management consulting since 1995.

Ksenia Tkalich (Remizova)

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Price and Your Benefits

The unaccounted losses due to unproductivity and subpar employee performance significantly exceed the investment required to implement a 'smart salary' system for them.

The efficiency of an employee's work, when the salary model is correctly structured, typically improves by 2 to 5 times. It's straightforward to calculate the revenue a company misses out on daily, monthly, and annually from each employee, much less the senior managers.

Number of Items	Cost per Item in USD
20	445
15 - 19	465
10 - 14	485
5 - 9	510
3 - 4	550
2	725
1	1 025

When allocating 'Smart salaries' to senior roles results in a sum below 70% of the specified amount for their subordinates, the allocated sum will be increased using the appropriate coefficients.

Level 1. Coefficients for chief executives

For senior executives at large companies or heads of company groups, a coefficient of 4 is applied if 'Smart Salaries' are not ordered for at least 70% of their subordinates.

Clarification: This adjustment is necessary because an effective 'Smart Salary' model for senior roles demands extensive research, formalisation, and assessment of operations across most departments. Therefore, a comprehensive development process benefits the Customer by providing access to 'Smart Salary' packages for both senior and lower-ranking positions, positions at a comparable cost.

Should the 'Smart Salaries' design be ordered for over 70% of entry-level or lower-ranking positions, no adjustment factors are assigned.

Level 2. Coefficients for small team leaders

If a leader of a small, autonomous enterprise orders 'Smart Salaries' design and less than 70% of their team members (either directly or indirectly) are included in the 'Smart Salaries' order, or if 'Smart Salaries' are not ordered for them at all, a threefold coefficient will be applied.

However, should the 'Smart Salaries' design be ordered for more than 70% of the team including any-ranking positions, no adjustment factors are assigned.

Level 3. Coefficients for heads of department

If 'Smart Salaries' design is ordered for a department head, and the order for 'Smart Salaries' design for their subordinates (whether directly or indirectly) includes less than 70% of the team, or is not ordered at all, a coefficient of 1.5 will be applied.

Should 'Smart Salaries' be ordered for more than 70% of entry-level or lower-ranking positions, no adjustment factors are assigned.

Level 4. Zero coefficients

When 'Smart Salaries' design is ordered for an employee without any lower-ranking positions, no coefficient is applicable under any circumstances.