Before starting development motivation systems purchasing department, let's first discuss what functional responsibilities this department may exist. It is worth noting that each company has its own vision of what procurement department employees should do. The most simplified ideology is to purchase goods for the needs of the company, search and manage suppliers. The maximum ideology, in my opinion, is procurement, inventory and price management, procurement budgeting and the development of new brands (the functionality of the purchasing and marketing department is already intertwined here).

So, in order to develop a specific motivation system for your employees, you need to initially decide what they are responsible for. Below is a diagram that describes the functional responsibilities of the procurement department as much as possible. Based on this scheme, we will describe possible indicators to compile a motivation system for the purchasing department.

Possible areas of responsibility of the purchasing department. Click to enlarge the picture

As can be seen from the diagram, the maximum functionality of a purchasing manager can be determined by the following areas of responsibility:

• Inventory Management,
• Procurement,
• Pricing,
• brand promotion,
• Launch of new products.

To describe the motivation system, the concept of KPI is often used, which means “Key Performance Indicators” in translation. It is worth noting that, until recently, when calculating motivation, we usually used economic indicators, which describe the effectiveness of management brand or product group. Such indicators can be: the sum of sales and purchases (fulfillment of the plan), profitability of sales, profitability of investments in stocks, inventory turnover ratio.

Over time, it becomes clear that it is difficult to determine the performance of each employee based on economic indicators alone. And besides, the actual economic indicators that already exist reflect the result of the style of work that the manager is used to working with. But not always the manager puts maximum effort into his work. Yes, he can place orders and adjust prices, but this is not all that allows you to manage the brand as efficiently as possible.

The article was first published on Executive.ru on December 29, 2012 under the heading "Creativity without cuts". Re-announced in the content block as part ofspecial project editions

Good, ladies and men! Today's surprise, which we will defeat, is: "How to motivate the employees of the Purchasing Department to achieve desired company result, and what actual result they should achieve.

From the title it becomes clear that enjoy reading this post makes sense only to those who have goods, warehouses and buyers , to everyone else according to their mood as an elective.

By the way, what I will tell you about now is a unique author's development of our team, which we are giving public access for the first time. However, our clients have been using this technique for a long time, because it allows them to keep a minimum inventory at a 95% service level, and, most importantly, their Buyers clearly know how to get the maximum bonus, working legally 8 hours a day without nerves, psychos and stress .

Well, now to the point.

Purchasing Department Motivation Indicators

Let's think about what is global task Purchasing department?

Probably in that every client who applied to your company could buy the goods he needs. It can be said in another way: “You should always have goods in the right quantity at the lowest possible prices in your warehouse or in your showcase”. The question is, what should the Buyer do to accomplish this task? Everything is correct. The Buyer must procure the correct quantity of goods from its Suppliers on time.

Based on this, we can formulate the first motivator, for which the Procurement Department is responsible.

This - Zeroing the balance . That is, if you have zero pieces of the goods needed by the client on the balance, then this is for any flight. Zero on the balance is not only a loss of money due to lost sales, but also a chance to say goodbye to your client, who will cheerfully gallop away for this product to your competitor.

The second motivator, for which every self-respecting buyer is responsible, is called dead stock or illiquid, or hanging, as you like.

The fact is that if “Zero Remaining” is a hammer, then “Dead Stock” is an anvil on which the average buyer spins 90% of his working time.

Judge for yourself if you insert only one task into the buyer's motivation: "No zeroing out balances", then he will cry with happiness, because bringing an annual supply of each item to the warehouse, and then sitting all year on the priest evenly and cutting into tanks is best job in the world.

So here it is Index Dead stock is a 100% MEGA motivator to purchase the optimal amount of goods.

Because dead stock is:

• Plost money , which you pay for the storage of unnecessary goods to anyone.
• Unreceived money in the amount of at least the Bank rate that you lose by freezing money in excess goods.
• Loss of liquidity companies, because it is rarely possible to quickly sell excess goods without a direct loss.
• Potential substandard and marriage , because from the fact that the goods are in the warehouse, they do not get any newer, neither morally nor physically.

In general, believe the bankruptcy stories of many, many Russian companies. Dead stock is an evil no less, and sometimes even more evil, than zeroing.

The last indicator that we can credit or blame to the buyer is Reduced input costs .

This is pure water quality indicator and it is set to an employee only if he has the authority to negotiate with the supplier for the provision of special prices, discounts, bonuses, some kind of price or material donuts, for example, return of marriage, transport at the expense of the supplier, deferment, etc. and etc.

Here the task is very simple - constantly strive to reduce input costs . And how to do it, everyone decides for himself. Ask, beg, threaten, argue, substantiate, blackmail - whatever your heart desires, as long as the Supplier gives you, gives and gives a lot and for free.

So, here is a list of all the motivators we need:

1. Resetting the balances.
2. Dead stock.
3. Reducing incoming costs.

We pass to the main thing. Now I will show how to use these motivators to build a simple and effective system motivation for buyers.

Let's assume that we have a certain employee of the Purchasing Department, whose name is Snabzhentsev Stepa. Its task is to analyze the receipt, consumption of goods in the warehouse, the current balance and correctly form an order to the supplier. At the same time, he has the authority to tilt his suppliers in any direction.

We gave him a salary of 30,000 rubles and determined the bonus part in the amount of 70,000 rubles.

First, we will consider an example of work not to order, but to a warehouse, which means that 70,000 rubles of the award must be divided into 3 parts .

How to do it.

Let's say the biggest financial sadness for us is zero on the balance.

Therefore, the motivator Residual zeroing we will evaluate in 50% premium, which is 35,000 rubles.
For the absence Dead stock let's pay 40% bonus. It will be 28,000 rubles.
Cost reduction estimate in 10 percent for this is a difficult, irregular, and thankless task.

So, we have divided the Stepan award into three parts, depending on the importance of each of the motivators.

Methodology for calculating motivation indicators

Now let's figure out how to calculate the indicators described above. Look, this is a sales chart of some conditional product. Let it be the simplest, well, let's say Salt. You imagine any running position from your assortment.

On this chart on the X scale are the days of the month , in our case, it is May. A on the scale Y is the most important performance indicator of the buyer, which is called Residue depth .

Residue depth — shows the number of days after which we will sell the current balance of the goods.

To count it you need to take the current balance in the warehouse and divide it by the average daily sales volume for the selected period. As a result, we will get the number of days after which we will have zero pieces of this position on the balance.

On the graph, the first point is 7. Where could such a result come from.

Suppose on May 1st there were 70 packs of salt left. At the same time, we have sold 300 packs in the last 30 days. If we divide sales of 300 packs by 30 days, we get an average daily sale of 10 packs per day.

Elementary. Now we divide our balance of 70 pieces by the average daily sale of 10 packs and as a result we get indicator Depth of balance on May 1 equal to 7 days of sales . And this means that in seven days we will be left with a zero balance if the rate of sales does not change.

That is, the numbers on this chart mean the actual "Depth of balances in days" for each day of the month.

Setting the standard of motivation

Now you need set a standard by indicator Residue depth , that is, decide how many days is good and how many days is bad.

For the indicator Residual zeroing the standard is simple, like a carrot, and is equal to the 1st day . That is, the stock of our goods should not fall by less than 1 day of sales. Although, as practice has shown, it is better to make this standard higher, laying in it some kind of safety stock. A safety stock is needed in order not to be left without a product during a sharp rise in sales.

Suppose, based on our calculation, for one day of trading we need 10 packs of salt, but suddenly tomorrow a client will appear who decides to take 20 or 30 pieces at once, because anything is possible. So, in order to insure against such unpredictable bursts of sales, we need to add 2-3 days from above.

Therefore, let's set the "Zero balances" standard equal to 3 days.

Now establish a standard for "dead stocks" . This is where things get a little more complicated, but not by much. To determine this standard, ask yourself the question: “In how many days will we bring a new batch of goods to our warehouse?”

Suppose that from the moment the goods are ordered to the supplier until they arrive at our warehouse, the maximum period is 14 days. That is, in 14 days we will bring a new batch of salty to our warehouse. So these 14 days will be the standard for the Remaining Depth, above which the stock will be considered dead.

Although here I am I recommend throwing 40-50 percent of the maximum period for a different force majeure . Therefore, in our example, we will set the upper bar not 14, but 20 days to take into account earthquakes, invasions of alien green men and other universal catastrophes.

And now ask yourself a logical question, that if we are guaranteed to bring the goods to the warehouse in 20 days, then what kind of water supply should we store in the warehouse more than for this period?

That is the maximum delivery time of the goods from the Supplier and will be your standard for "Dead Stock" . For clarity, we mark these standards on the graph with a red and black line.

Boys and girls, we've reached the finish line because now it is enough for us to count the number of non-compliance with the established standards to understand what award our Styopa will receive, and how efficiently the Purchasing Department works.

With such a problem, as you know, Winnie the Pooh will also cope. Look - in our example, the “Reset to zero” standard was not met for 7 days per month, and the “Dead stocks” standard was not met for 4 days.

So, if our Styopa traded only one position, then his premium in terms of Zeroing and Dead Stocks would be considered very simple.

For the "Reset to Zero" non-compliance with the standard was 7 days out of the 31st, that is, 23%. If we reduce 35,000 rubles by 23%, then we get 26,950 rubles. This will be Stepan's actual bonus for fulfilling the indicator "Reset to zero".

Similarly, we calculate the premium for "dead stocks". Its maximum amount is 28,000 rubles, non-fulfillment was 4 days out of the 31st, that is, 13%. We subtract 13% from 28,000, we get the actual amount of the premium 24,360 rubles.

Dear colleagues, now we have studied a rather complicated topic, and I really hope that you have understood the logic and methodology for calculating these indicators.

So here it is if you really understand all this, then you should inevitably have a legitimate question for me.

“Uncle, you have laid out everything here perfectly and in fact everything is correct, but damn, how do we calculate it in real life, if we have 6 buyers in the Department, each leads 3-4 suppliers and each has at least 500 positions in the price list”.

The question is correct and fair. For I bet 100500 to one that none of the programs that your purchasing department works with have the ability to generate such a report .

And the more pleasant and honorable it is for me to show you a report that can be generated in Information system "TopControl" .

Before you report with the calculation depth of balance for each position for each day of the month . And in the last column of the report we see the final implementation of our standards . These are the very secret percentages by which we adjusted the premium of our purchaser.

Only this is the percentage of compliance with the standard not for one item, as we examined on the chart, but for all commodity items at once, for which a specific buyer is responsible.

Naturally, this report has great amount various settings that allow you to subtly sharpen it to the specifics of your work .

Just imagine: 3 minutes will be enough for you to see the full picture of the efficiency of the Procurement Department. Shikardos, agree!

Moreover, by generating such a report daily, your Buyers will instantly see all their current and potential jambs, which means that they will respond in time and adjust orders to suppliers, avoiding zeroing and restocking the warehouse.

Yes, what is there to talk about at all, if the experience of our clients shows that after three weeks of working with this report, there is a twofold decrease in zero balances and a 30% decrease in stock.

Well, two moments for dessert.

1. If you carry goods under the order, then you can not complicate your life by calculating these standards. Simply take and divide the number of outstanding orders by the total number of customer orders for the reporting period, thus obtaining the "percentage of customer orders not filled", by which the buyer's premium can be reduced.
2. What% of the bonus to pay an employee for reducing incoming costs from the supplier. There will be no cleverness here. This is a purely personal matter for each Manager, because this indicator cannot be calculated or counted quantitatively. I recommend not to complicate anything. The buyer received some goodies from the supplier in a month, reward him with a 100% bonus for this indicator, he did not receive, sorry, there is no bonus.

That's all. There will be questions, write in a personal [email protected] I will definitely answer. Visit our website topcontrol.com . Everyone good people — Have a good day, and personally to you good luck in business and big sales.

To be continued… VideoPost version

"They do not want to work. I give them everything, and they stab me in the back,” are the classic words of the owner of the company.

And we are in marketing consulting have long realized that it is impossible to achieve high results by working only with clients.

In this article, we will talk in detail about the motivation of sales managers.

I am not him. They are not us

The owner always compares the manager to himself. This is the very first and biggest mistake when creating motivation for staff.

And before we move on to turnkey solutions, I want to open this question more fully.

After all, it is the foundation of a positive result. Not everyone needs money. Dot. In our article, we raised this issue.

But the owners cannot put this thought into their heads. You think that there is only one meaning of work - it is money. This is the big difference between an owner and a manager.

Entrepreneur and worker different people. And it's not just about money. Values, ideas, plans - all this is also different.

The employees are also different. They are all at work different reasons. Again, it's not just about money.

Long term motivation

For you, this means that the usual approach “Salary +%”, in the classical implementation, will not work as effectively as a complex implementation.

Therefore, even if in this article we will measure everything in money, you should also understand that the usual free cookies in the office for employees also affect the motivation of sales managers. Unnoticeable, but important.

Cookies!

This type of motivation is called “long-term motivation”. It also includes such elements as formal employment, insurance, social help, workplace and other obvious elements of work.

It is not necessary that all this be at a height, at least it should be within normal / comfort limits.

Non-material motivation

In addition to long-term motivation, for the sake of completeness, we need to add “non-material motivation”, also known as “short-term motivation”.

This brings us back to the topic of the importance and primacy of money. In addition to the amount of bank card, people want to receive respect, status, power, recreation and other privileges for their efforts.

Thus, as you read further examples of motivational schemes, periodically think about how you can replace money with intangible bonuses.

Such bonuses include: an extra day off, the softest chair in the office, or a family trip to a restaurant. You will find more such examples in the article.

Sales plan

Like the average person, there are topics that make me nervous. One of these topics is a sales plan, or rather the phrase - “It is impossible for us to set a sales plan. Everything is very specific for us.” Stop! You should have seen my face now...

A sales plan can and should be set in all businesses. First, you, as the owner, must understand where you are going.

And if you do not understand what you are going for, then your employees, all the more so, do not know it. Secondly, without a sales plan, you will NEVER make a normal motivational scheme.

We created ingenious motivational schemes, but without a sales plan, they collapsed like ships on rocks and glaciers.

Therefore, if you do not have a plan and you are not going to set it, then you can close this article. Since even those chips that you take from here will not improve the situation, and we will be to blame for giving you such a bad scheme.

We share and drink

We finish with in general terms and move on to the most motivational scheme of sales managers.

It is like the human body: complex and consists of several parts. Each part performs its function, without which it is impossible to obtain the desired result.

Below I will describe the motivation of each employee separately. You can find out how to motivate them in a group/department in our article.

fixed part

I personally tried several times in my company to implement work only for a percentage.

All these thoughts appeared against the background of other businesses that have already implemented this and boasted of the results. But my personal opinion is that the employee should have a salary. This is important for you and for him.

Let's be honest. Not everything depends on your active sales manager. Your pricing, your product, your marketing, your management and more is up to you.

The manager influences this, but cannot radically change the situation. This means that it is unreasonable to demand work from him for%.

Therefore, we must make a fixed part that a person will definitely receive, even if he does not sell anything.

This is his guarantee that even if he does everything as you say, he will receive the money.

Otherwise, if every man is for himself, he will do what he considers right and pecuniary for him. The result is a lack of control and chaos in the company.

Wages should be done on average in the market. Too high a salary will attract lazy people and will not give an opportunity to open up. Too low a salary will repel the candidate and show (at first glance) that you are a very dodgy company.

Important. When looking for a job, after studying the final salary, managers go to study your salary. Not a percentage, not a motivation system, not bonuses, but a salary. Keep this in mind when hiring employees.

floating part

The most interesting part of the salary. After all, if we pay the fixed part for the performance of basic duties, then we pay the floating part for the result. What a nice word - the result ... Straight balm for the soul. But back to business.

The floating part is called for a reason. This is not only a percentage, as many people think.

It consists of different points, each of which has its own calculation scheme. Ideally, use all the ingredients, but separate the flies from the cutlets so that the employee understands what he is responsible for.

KPI (key performance indicators)

In companies where the salary is too high (according to the market), we take part of the money for KPI. These are indicators that for business are intermediate between a manager and money.

That is, it is not the money itself, but the actions that lead to this money.

In a wholesale company aimed at incoming calls, this is the conversion from a lead to a purchase.

In an active service sales department, this could be the number of outgoing calls. Everything is individual. But here is a list of typical and most popular criteria:

1. Lead-to-customer conversion;
2. Number of outgoing calls to new customers;
3. Number of meetings with new clients;
4. Number of calls to old customers;
5. Amount of accounts receivable;
6. The number of sent .

All of these items can be measured. This is a key factor in setting KPIs. Everything that is not measured goes into the “Bonuses” section, but we will talk about it later.

Now about the performance indicators for which you must allocate a specific amount.

As a rule, there should be no more than 5 such indicators (better than 3), and they are set for every day or week.

That is, it becomes a kind of indicator of the employee's performance over this period.

You can pay according to the principle of did/didn't do (received/didn't receive money), or you can pay in direct proportion to how much you did.

Case from practice. In working with the auto center, we set KPI to . The call center called customers and asked how satisfied they were with the work of the employee. The more positive feedback he got, the more he earned.

Progressive percentage

For us and sellers to receive a percentage of sales is the norm. And, most of the money depends on it.

So it was, is and ... This approach is correct and is mandatory when working as a salesperson. But it can also be improved, made perfect.

Now we need your sales plan. Because now we will pay the employee not just a fixed percentage of sales, but it will be progressive.

It will vary, depending on what stage of the plan the employee is at.

Imagine a situation where you have a plan of 5 million rubles per employee.

The plan is good, which means that it is not so easy to fulfill it, especially when, on average, an employee completes it by 80%, and then gives up, because he considers further actions difficult and, most importantly, not rational in terms of money.

Therefore, we make a knight's move and divide our sales plan into steps of 5%. And for each step we set the corresponding income:

1. up to 70% - 5,000 rubles. (2%)
2. 70-75% - 6,000 rubles. (2.2%)
3. 75-80% - 7,000 rubles. (2.5%)
4. 80-85% - 8,000 rubles (2.8%)
5. 85-90% - 10,000 rubles. (3.2%)
6. 90-95% - 14,000 rubles. (4%)
7. 95-100% - 18,000 rubles. (4.5%)
8. 100+% - 24,000 rubles. (6%)

As a result, we get a motivated employee who clearly understands how much he will receive if he makes a little more effort.

Thus, we show him that the game is worth the candle, and break through his financial ceiling, because greed takes over (in a good way).

Note. Following the example above, you can pay an employee a percentage of sales, or you can pay a fixed amount from month to month to remove the jumps and settle the average monthly amount.

Fixed percentage

Now we are not talking about the standard percentage for the general sale, but about the reward for the sale of “special” goods.

All companies have different "special" products. Therefore, you need to select them yourself. But to better understand what I'm talking about, here is a list of the most popular:

• Discounted goods;
• Goods of a certain brand;
• Upsell goods;
• Promotional goods.

You define groups of products and tell your employees that they will receive an increased percentage of these sales.

We do this in order to focus the attention of employees on something specific. As a rule, a fixed percentage product is changed once a month or a season, as the priorities of the company also change.

WE ARE ALREADY MORE THAN 29,000 people.
TURN ON

Bonuses

In addition to direct actions that affect sales, there are many secondary, but no less important ones. For example, reporting.

On the one hand, this is the duty of the employee, but in reality this is an additional option, which many employees speak badly of, as they are not used to doing this.

Therefore, in bonuses we place important actions for us that benefit both the business and the employee.

To make it clearer, I will give a few typical ones that we most often use in motivation systems for managers with our clients:

1. Maintenance (start with Bitrix24, this is the TOP for Russia);
2. Accounting for your actions in the program;
3. Work on ;
4. order in the workplace;
5. Reporting.

You may have other items. You set them based on what is important for the business and for you as a leader.

By the way. If you decide to use CRM, then I recommend Megaplan, and especially for you I have prepared a promo code “Megastart”. It gives a 10% discount + another 14 days of free trial. Just tell it to a specialist -> megaplan.ru

Each bonus is paid separately. Usually an employee loses it when he breaks the rules 2-3 times. If you are a hardcore lover, you can deprive the bonus immediately.

Interesting. The pleasant moment of bonuses is that they are perceived not as a penalty, but as an opportunity to earn more money. When it is lost, the employee blames only himself, as he himself missed the opportunity.

Super bonus

In order for the result to not stop after 100 percent of the plan is completed, you need to encourage the manager to continue hard work (hard work).

To do this, we use a super-bonus. The payment scheme can be implemented in the following form:

1. We pay an employee for each + 5% in the plan an additional 1,000 rubles.
2. Upon reaching 110-130% and 130-150%, the percentage of profit increases

In this case, the employee will be motivated to move even for every 5 percent and there will be a desire to complete the percentage step (110-130 and 130-150) as soon as possible, because there is super-speed.

Just do not be greedy, super-speed means a very high percentage. To make it easier to bully him, you think how much a person will bring you money if he overfulfills the plan, and then the value of his act instantly grows.

Such an over-bonus, like floating interest, helps individuals to show themselves.

And against their background, others also begin to try better, because they do not want to be the worst in the team. And what about the worst? Right! They are fired.

By the way, you can set a rule that the worst employee in six months will be fired. Not bad stimulation for the lagging behind, I'll tell you.

Bonus deduction

I am not a fan of fines. I'm sure you don't like them either. It's like taking a gift from a birthday boy. Nasty feelings.

But without them sometimes nowhere. Therefore, in order for your managers to understand that they will receive a fine for committing, you need to make a de-bonus sheet.

This does not directly apply to the motivation scheme of managers, but until employees know that there is a stick in addition to the carrot, they will score on some actions that are very important to you.

We combine motivation and penalties - we get an insane cocktail of top managers focused on results.

Each owner draws up his own list of bonus deductions, usually it fits on an A4 sheet, although initially everyone says that he will now write War and Peace.

There aren't many really important ones. Here are some typical solutions:

1. A transaction was not created in CRM during the sale;
2. Not submitted a report at the end of the working day;
3. There is no compliance with the corporate style of clothing;
4. Mess in the workplace;
5. Naming a phrase from the stop-list of words;
6. being late for work;
7. The reason for the delay in the execution of the task until the end of the deadline is not written;
8. The task set by the management was not completed on time.

As usual, you will have your own list. Each item will have its own penalty amount. If there are intersecting points with “Bonuses”, then if the bonus is lost, the employee will still be fined.

And then we saw cases when an employee indicatively lost a bonus and continued to do nothing.

Briefly about the main

In order for the system of motivation of managers to work, it is necessary to approach it comprehensively.

The formula for success is as follows: use all the points from our approach (adapted for yourself) + long-term motivation + non-material motivation.

We take everything from this only the most important, so that the manager does not get confused in the scheme.

Any scheme requires verification and adaptation to your area. I don't like to say it, but every business is specific and has its own characteristics.

In general, creating a motivational scheme is not difficult when you have our example of calculating the motivation of a sales manager.

It's hard to make it work. Therefore, be patient, get ready for the fact that employees need to instill the habit of counting their earnings.

This issue is resolved through or boards / tables of salaries (online and offline).

P.S. We know how difficult it is to create motivation for sales managers for the first time, so if you have any questions, ask them in the comments, we will help you with advice for free.

I always say that it is wrong to say that purchases do not affect sales. Unfortunately, this statement is often found in enterprises. As a result, the enterprise either forms an incorrect system of indicators of the effectiveness of the procurement department, or the enterprise refuses the motivation system altogether.

Incorrectness lies in the fact that employees do not understand ultimate goal his work. And the motivation system based on such key performance indicators (KPIs) turns out to be untenable.

In case of refusal of motivation, a fixed salary is set for procurement specialists. Sometimes they are given some kind of bonus, which the head distributes within the department. No performance indicators, no digitization. This approach, too, is not stimulating for employees and improving work efficiency.

Key Performance Indicators (KPIs)

In fact, creating effective motivation is a very real task. The purchasing department has many indicators that must be calculated, predicted and planned in the system. And where the plan is, there is the fact of its implementation (with proper management!).

Here are the most common key indicators efficiency that have proven to be effective in practice. In descending order of the degree of influence of the purchasing department on the corresponding KPI.

Typical purchasing department KPIs

1. Realized markup in absolute and relative terms
2. The value and structure of accounts payable to suppliers
3. Inventory turnover of the enterprise
4. The amount of bonuses from suppliers for the period
5. % unsatisfied customer demand
6. Volume of illiquid assets in absolute and relative terms
7. Economic efficiency of promotions
8. Inventory expiration dates (if there are products with expiration dates)
9. Evaluation of purchasing department employees by internal clients
10. Amount of proceeds
11. Volume of claims to suppliers in physical and relative terms
12. Logistics costs for incoming cargo flows other indicators

All of these indicators can be digitized. Most of them are planned if management accounting at the enterprise is maintained at the proper level.

Development of a motivation system for the procurement department

When developing a motivation system, those indicators should be selected that are most affected by purchases within the framework of specific enterprise.

Practice shows that the classical system of motivation, consisting of a constant and a variable part, is effective.

The ratio between the constant and the base variable (before the coefficients are applied) must be at least 50:50. And the number of coefficients for the variable part should not exceed 6 (i.e. no more than 6 procurement performance indicators).

It is important that the amount range wages, which the employee will receive in his hands, was wide and so that the employee could independently calculate how much he would receive based on the results of work for the past period.

An example of a motivation system for procurement specialists

The basic salary of a manager is 60 thousand rubles: 30 thousand rubles constant part+ 30 thousand ₽ variable part. The concept of "base salary" means the achievement, but not overfulfillment of planned performance indicators. That is, all coefficients for calculating the variable part are equal to "1".

If an employee has worked "perfectly well", he will receive 95 thousand ₽: 30 thousand ₽ constant + 65 thousand ₽ variable. In this case, the maximum coefficients are applied to the variable part, since all planned indicators are overfulfilled. If not all, but only some of the planned indicators are overfulfilled, then the final salary amount can be in the range of 61-94 thousand ₽.

If the performance of an employee is extremely low, then at the expense of the variable part, he will receive at least 35 thousand rubles: 30 thousand rubles constant + 5 thousand rubles variable. In this case, the minimum coefficients are applied to the variable part, since All targets were not met.

Such a system material motivation will stimulate the implementation and overfulfillment of plans. If an employee with an enviable frequency receives the minimum salary, while being satisfied with his performance, then the option of replacing him should be considered.

It is important to remember that performance indicators for different functional procurement department employees may differ.

Example. Purchasing Manager and Sales Manager claim work will have different scorecards (different KPIs). And the plumbing purchasing manager and the lumber purchasing manager share the same system of performance indicators (the same KPIs).

Service for the development of a KPI system and a motivation system for procurement department specialists

I offer my services in the audit of the system of indicators of the activity of the purchasing department in order to develop new system indicators, adjustments existing system indicators, the formation of a system of material motivation for employees of the procurement department.

The duration of this work is determined individually. It depends on the systemic nature of the business of the enterprise and the degree of automation. management accounting. Ideally, development KPI systems procurement must be preceded by a general procurement audit.

The result is the final motivational system of the purchasing department for this particular enterprise. This system will remain relevant at the enterprise for the period of maintaining the current business model and functioning strategy.

Labor market monitoring

I would also like to note that an enterprise should regularly monitor the salary of all specialists in its market. And, at least once a year, review the system of employee motivation and, if necessary, make adjustments to it.

KPI and staff motivation. Complete collection practical tools Klochkov Alexey Konstantinovich

4.3.9. KPI for Purchasing