Clear Evaluation System

MS Excel list of all members’ salary is distributed!

There is one thing that all new members are surprised. It is the fact that excel file of all members’ salary is distributed to all employees every month. You can see who receive how much salary easily. If you add all months’ salary, you can see yearly salary also.

Also, all employees need to check their own salary every month before fixing it. “This deal was done by 2 people, so please pay 70% of incentive to me and 30% to another member”, “this material development level was higher than original estimation, so please change incentive”. Such kind of communication is done every month. Honestly speaking, it takes time, but we keep this operation.

We reached this operation considering the reason why good employee leave their companies

Why do we keep such time consuming operation? Some people said that we can keep this operation because there are around 10 people only. But we still keep it with around 40 employees, and will keep it even if we have 50 or 100 employees. Because we think this is one of core value of Precena.

Our top management think “evaluation” is one of the main reason why good employee leave company. We also applied yearly fix salary when we just started Precena. But some people said “I contributed more”, “I have higher ability than him” etc. and complain each other. And even if we say you are not contributing in this deal etc. they can think “managements do not evaluate me fairly”.

That is why we applied current rule to open all information with clear rule for fixing salary, and check by all employees. Then if some employee has complain, he or she can raise issue and discuss with all employees. Actually, spending several years, we keep improving our incentive system.

careers-evaluation

Incentive calculation MS Excel is creating the Precena culture

This salary excel sheet is named “Incentive calculation excel” internally, and it is creating many Precena culture.

Fair and Open culture

Firstly it is creating Fair and Open culture that is also in our vision. Usually, many people want to hide is salary information. “How much salary the president is receiving?” Which instructor is getting higher salary?” If you hide salary information, such kind of talk can be happen in the company.

Mind of self-evaluation and improvement

All the rule for incentive are clear and most evaluation is fixed by discussion among related people. So nobody can complain. All the result are caused by their own performance. If someone think rule is bad, they can raise issue and discuss with other employees anytime. And if rule is changed, revised salary would be paid for past certain period. That is why more people consider more about improvement their performance.

Kindness and workload balance adjustment

With this excel file, you can see who did what kind of work with what kind of level. If someone’s salary is over 20,000 US$, we may think “Wow! I envy him”, but we think more “work load is concentrated too much on him”, “is his health OK?” If there are certain gap of salary between 2 people whom we think contribution to company is same level, we think “rule can be strange now”, “Job assignment balance can be wrong”. We think too high salary can be too much work load on employee.

Cost consciousness and contribution to the firm

This MS Excel file has total figure, of course. And you can see profit of the month together with sales amount and cost. All employees keep checking this excel sheet, so if minus profit is kept for several month, we can see the risk, and if we have big plus for several month, we think we may have bonus at the end of the year. Also, we can see each person is contributing how many % out of total contribution for sales, instructor and material development. So if someone’s % is lower than others, he or she can think “I should contribute more”.