KPI and Russian motivation in reality
Implementation and use of KPI needs to be documented by the employers at every stage. This was the conclusion reached by the experts at the round table organized by the “Kadrovoe Delo (Human Resources)” magazine at the “Personal Moscow 2013” exposition.
Ekaterina Boytsova, HR Director of the outsourcing department of BDO, got the audience’s attention with a simple example of developing KPI for certain business projects. She is convinced that the purpose of implementing KPI is of key importance. Acting on those premises, the management of an organization should think the system of KPI use over bearing in mind all factors: starting from individual plans of employees integrated with the hierarchy of the company goals up to general corporate planning. The expert mentioned among key matters the manning of the staff list. This can be achieved, if all instruction and regulation documents are made correctly, and “the staff list if not a consequence of wishes of department heads” but id based on the need for certain job positions in order to achieve business goals.
E.Boytsova concluded: in its own turn, a staffed position is an adapted, trained and motivated employee. At the conclusion of her speech, she told those present about the advantages and disadvantages of defining KPI for business processes.
Valentina Mitrofanova, General Director of the Professional HR Specialist Institute, explained how KPI should be implemented. In her opinion, if KPI is seen as an analogue of efficiency wage, this may actually lead to a high professional growth of the staff. Compliance of every staff member with the company criteria becomes the main principle of such system of wages and the basis for calculating the remuneration of each employee.
She paid special attention to local normative acts, which include KPI provisions, and reminded of the main parameters of such documents’ legality.
V.Mitrofanova also explained, in which cases KPI implementation was exempt from the provision of Article 74 of the LCRF (changes of employment contract provisions agreed by the parties, made on the employer’s initiative), and what the employer’s risks of formally basing his actions on “commercial necessity” only were.
Tatiana Samarina, Doctor at Law, Senior Lawyer of the Law Firm "YUST", told about the “other side” of application of KPI – bonus payment to the employees conditioned by key indicators of efficiency. She spoke in detail on the trend, which is being formed in the court practice, according to which no bonus is seen as a legal action by the employer in the conditions of the employer’s local regulations. The Determination dated 04.02.2011 by the SC of Russia on the case №33-В10-11 was given as a possible source for such legal position. For example, certain court acts explain the essence of the term as a disciplinary (material) measure, which is not similar to a disciplinary penalty (see determination dated 17.09.2012 by the Krasnoyarsky Territory Court on the case №33-8017, determination dated 28.03.2012 of the Yaroslavsky Region Court on the case 33-237/2013). Following the court practice of the recent years, T.Samarina called the round table participants’ attention to three most common employers’ mistakes regarding no bonuses, which lead to the employees’ victories in the cases of disputes. In conclusion, she pointed out that the use KPI and bonuses conditioned by those indicators should not demotivate the staff. The expert is convinced that reckless actions of a party to employment relations result in bringing the mutual complaints to courts, which is essentially disadvantageous to either one of them.
All materials of the round table are available at the website of the “Kadrovoe Delo (Human Resources Business)” magazine.