Yearly Agreement Deutsch

April 16, 2021

There are high costs associated with implementing and implementing a system of objective agreements in a sustainable manner. The framework objectives must be defined and a comprehensive approach to the company must be developed. Staff must be informed and involved. Even managers and the city council may need to be informed and involved in the process. In addition, executives must be trained in their new tasks. It takes not only a lot of capital, but also enormous time resources to create a system of objective agreements and a lasting agreement. An agreement between employers and workers, in which the periodic targets for each worker are agreed on compensation according to the degree to which the objective is achieved. [4] With the agreement of a bonus, employees are involved with a given percentage of the company`s economic success. It is a success tax that is independent of the contribution of employees to the success of the company. On the other hand, goal agreements must define the objectives that must be achieved and influenced by staff to support them. At the end of the fiscal year will occur to assess the performance of the employee will be decided by which, whether the objectives have been met or not. If it is exclusively the sales performance of the company, which is not very influenced by the employee, it is a bonus. [7] Objective agreements are a modern human resources management instrument in the form of variable defined benefit compensation, considered a current levy.

[3] The evaluation criteria for achieving the objectives are more transparent and the personal development objectives of the staff are taken seriously in the company. The feedback from the superior informs the employee of his strengths and weaknesses of a reasonable basis. In objective interviews, staff members can express concerns and wishes and provide feedback to the supervisor. Employees have an idea of their goals, through a partnership, which has a positive impact on the work environment. In addition, the employee has the opportunity to earn above-average income. For employees, agreements on objectives lead to a clear focus on the company`s objectives and their own area of work, and a clear focus on the type of contribution or delivery expected by the company. Employees are actively involved in the company`s objective. The possibilities for creativity and autonomy are also extended to staff. Goal agreements are concluded between two parties, but the objectives are set unilaterally by the employer as part of its management rights.

[6] The implementation of a system such as objective agreements can only be cost-effective if costs are offset by significant improvements in worker performance. The increased risk of conflict in assessing the achievement of objectives, particularly in the case of ambiguous objectives and complex billing, is reflected in the part of the company`s counterparty.