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Incentive Policy

INCENTIVE POLICY: Impetech Group

 

  1. Definitions. The growth of a Company or Concern or Business House is solely dependent upon dedication, hard work and quality performance of its team members.  A highly motivated man can produce results disproportionate to his NORMAL abilities.  To ensure continued excellent performance, there should be a need to give incentives in the form of financial or non-financial benefits even to include promotions, cash awards and suitable honours and awards.

 

  1. Aim. The aim and objective of this policy is to drive Company merely in two fronts viz (a) Revenue Increase through New Sales and expansion through Lateral & Vertical sales and (b) Collection including 100% of present collection and bringing outstanding money back from broken clients and existing customers.  In addition to the incentive policy, the promotional avenues to capable and qualified persons at the right time would always be the key to success of any organization.  It is therefore, imperative that a progressive Incentive and promotion policy is implemented to give the requisite advantage to the business besides cultivating culture of employee satisfaction in the present aspiring workforce.

 

  1. Performance Measures. Objectives assigned to Sr VP, HODs, Managers, RMs/BMs and all P&L Appointments.

 

  1. Incentive scales. Predefined degrees, an employee can get a specific degree achieving a predefined performance measure.

 

  1. Scope. This policy and procedure applies to all P&L Appointments of the Company.

 

  1. Policy. It is the policy of Premier Shield Pvt Ltd to provide competitive incentives to motivate its employees to do their best and align their contributions to help the Company in achieving success.  Incentive policy will be implemented systematically on equitable and merit basis.

 

  1. Guidelines. All performance measures and incentive scales should be approved before 01 Apr every year. It should be specific, measurable, achievable, realistic, and time-frame (SMART Measurers). Should not be more than 8 eight measures. Should not be less than 4 four measures. Following parameters should be ensured: -

 

            (a) Should not be submitted before an employee gets inputs from his/her manager.

 

(b)  Any employee joining after 1st of Apr will be eligible to an incentive plan policy as a percentage from date of hire on pro rata basis.

 

(c) The maximum incentive entitlement of any eligible employee cannot exceed five gross salaries in a Financial Year.

 

(d)  Any exceptions will need to be approved by the Director/CMD Sir.

 

(e) All Incentives will be calculated based on the gross salary of the previous fiscal year.

 

(f)  In case of employee resignation / termination, he will not be eligible to the incentive policy.

 

(g)  Exceptions to this policy will need to be approved by the Director. 

 

(h) Incentive policy forms should be saved in a master incentive file in human resources department, and copies published to eligible employees Incentive scales determined at the same time of approving performance measures.

 

(j)  All performance measures should be approved after one week from date of submitting them.

  1. Incentive Payment. The formula for calculating an incentive payment is:-

          (a) Incentive Payment =

Employee Gross Salary X company performance rate X employee performance rate

 

            (b) Where is Employee’s gross salary?

 

            Employee gross salary = Basic plus allowances less statutory deductions.

 

(c) Company performance rate =

 

            When Actual Performance Exceeds Expectation           = Point 1

            When Actual Performance Meets Expectation               = Point 0.5

            When Actual Performance remains Below Expectation = 0

 

(d)  Employee Performance Rate. Performance of employees on following parameters shall be taken into considerations while allocating Rating: -

 

                        (i) Performance.

                        (ii) Attitude.

                        (iii) Behaviors.

                        (iv) Coordination with team and lateral team.

(e) Employee performance rate = Appraising Rate + Results Rate

            Apprising rate should not exceed the following:

 

Appraising

A

B

C

D

Rate

1

0.5

0.25

0

 

  1. Accountability. Director and CMD Sir are responsible for setting company performance measures and related incentives scales. HoDs are responsible to provide performance indices of employees under them. Head HR shall be responsible for ensuring compliance of this policy and publishing all necessary forms for implementation.

 

  1. Procedure.

 

(a) Controlling team shall put up the parameters and target by 25th of each month for the ensuing Incentive Month.

 

(b) Director in consultation with Chairman shall approve the plan by 28th of the month.

 

(c) HR Deptt along with MIS person shall circulate the incentive plan by 29th of the month.

 

(d) Team leader to submit the incentive form of employees with HR/MIS for incentive approval and payment.