What does an employee get money for? Do not understand? Now you will understand

"Why am I paying you money?" - the usual question of the employer to the employee, and sarcastic, as a rule.



"Why am I complaining about you here?" - an equally common question from the employee to the employer.

To figure out what the employer really pays money to an employee, my own theory, coded in ten letters - "PZP - PZS - PZPI"




Accessibility as a resource. "Pay for attendance" (PPP)



If an employee just came to work, this in itself already creates value for the employer, even if right now there is no download for this employee (or maybe there will be no download all day).



This value lies in the fact that the employee becomes available to us as a free labor resource that can be used at any time when the need arises.



This value must be paid and it is paid.



ANY employee receives part of the salary for this, i.e. for his presence at the workplace, regardless of the opinion of him and his employers on this matter.

Pay to Attendance (PAP) accounts for the largest share of pay for, for example, security guards, shop assistants, repairmen on duty, and electricians. In the case of the guards, this is absolutely obvious to everyone. It is not clear that managers are also included here.



In general, the PPP always takes (explicitly or implicitly) a significant share in the remuneration of those employees for whom the main or one of the most important tasks is to ensure the stability of a business process.



The very existence of a PPP is one of the clear markers that a person is paid for labor relations, and not for contract work (where only the result is always paid).



Of course, the higher the quality of the employee's labor resource, the higher the PPP. This is also obvious. No one will pay for the PZP for a long time to a goof or a sloven who cannot act effectively when there is a download and there is a need for it. And vice versa, a very qualified and experienced employee has the right to count on high remuneration for the very fact of his presence at the workplace, if he is always ready to effectively solve the problem that has arisen.



Ensuring the stability of current business processes by compensating for emerging negative changes. Pay for Stability (CCD)



There is a famous (perhaps legendary) example of a characteristic CCD (combined with a CCD). This is the story of how Henry Ford paid for the work of the crews involved in the repair and maintenance of the operation of an automobile assembly line.



The repairmen were paid (high) per hour, but only for the time when the conveyor was operating normally. At this time, they were only required to be present at work in an able-bodied state (PPP!). At the same time, while the conveyor was running, they could do whatever they wanted in their premises. You can prepare tools, you can play cards, you can sleep, etc.



If the conveyor broke and stopped, a light alarm was turned on in the repair team's premises and a siren sounded. It was at this moment that the accrual of time wages to repairmen stopped. It was resumed only when the conveyor returned to normal operation. No further comments are needed.



This was the "purest" example of CCD as payment not for work in the ordinary sense ("doing something"), but payment for a certain result - maintaining the stability of the business processes necessary for the company at an acceptable level.



If this result (stability of the business process) suits the employer (that is, corresponds to its norms and standards), then the employee has an unconditional formal right to the EPC regardless of whether, in the conventional sense, he โ€œdidโ€ something in this work time.

It is clear that demonstrative "doing nothing" does not promote discipline, and people degrade, therefore, usually managers "hammer" this "free time without loading" an employee with something else, while typical managerial mistakes are often made when a person is loaded with a second process regular activity in as a direct executor, which leads to a conflict of priorities. You can give a "chemically pure" example of such a mistake - let's make the "emergency" locksmith-repairman on duty, who usually "just sits", also perform the functions of a guard at the gate. Everything will be going well until the first serious accident ...



In general, it is possible and necessary to โ€œscoreโ€ the conditionally free time of an employee engaged in ensuring the stability of a process with additional responsibilities, but it will be correct to observe the following conditions:



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The largest share in the remuneration of managers (especially the middle management) is occupied by the CSP, since ensuring the stability of the work of the subdivision entrusted to him is the first responsibility of the manager.



NB The

business process in this case is understood in the standard definition of project management, i.e. as an established, regularly repeated sequence of operations that consumes resources and creates some result that is valuable to the company.



The business process may or may not be based on any technical process (equipment operation, for example).



The business process should, without requiring continuous management "from above", work within a certain "normal" framework of its parameters (the very same stability). At the same time, changes that violate stability are undesirable and must be compensated for by management "from above".



Participation in project activities (initiation and management of positive changes). Payment for Positive Change (PZPI)



This includes all possible motivational schemes in which the cash reward is calculated "from the result." The result is understood as some kind of positive change - an increase in sales, or margin, or profit, or a completed project, etc.



Usually, those who pay for the work of hired personnel believe that they are paying the FDI, not realizing that everything is more complicated in reality.



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