Rédaction Anglais

A Flexible Wage System,

A flexible wage system presents many benefits,

Free action, stock option, bonus, efficiency bonus are becoming more frequent in many companies. This type of remuneration can increase employee motivation, that’s why this system has previously been used for commercials, but since 5 years many companies have chosen to extend this compensation to executives and then to all employees, thus greatly increasing their productivities

Indeed the remuneration being made on achieving the objectives defined in advance by the employer with the employee's agreement.

This system has another advantage for the employer indeed, during economic downturns as the global crisis knocks the planet since 2008. Employers can reduce bonuses distributed to employees for reduce their labor costs significantly.

This system allows companies to avoid difficulties in the expensive social plans, and so able to keep the budget to prepare for the post-crisis

The main interest for a boss, a variable compensation is the ability not to take any risks when hiring a new employee. Indeed, many companies find themselves obliged to recruit highly skilled employees, whether as workers, engineers, or manager, these employees all require a high level of remuneration. This therefore presents a significant strategic risk for the employer, in effect if such recruitment is done wrong, or if the company suffers a downturn, these workers represent a very large fixed cost to society. The risks of bankrupt are greatly increased.

In this case the variable pay has a real advantage for the company, the fixed salary of employees is relatively low, and employees are forced to be productive in achieving their goals, Employees can thus expect very high salaries if they exceed their goals.

This system can also adapt to economic conditions, because if demand falls, the goals become unattainable and wages fall naturally without the company is obliged to make additional contractual agreements or other social plans

This system requires monitoring and regulation important to remain effective. It should mainly pay attention to following points:

The recognition of the contribution of everyone should be objective so as not to raise objections. Transparency is therefore imperative on the criteria used and methods of evaluation chosen.

To be acceptable, the variable must be modest in the early days, then increase when the system's effectiveness has been verified. To measure effectiveness, it is essential to have a monitoring system to implement actions for readjustment of the level of achievement of the objectives if the path deviates too much more or less. Such monitoring can also verify if the proportion of remuneration linked to performance will not result ultimately in a cost higher than the expected gain. Controlling the impact of the variable through simulations, the diffusion of principles and methods of calculation.

The point must be more vigilant, the percentage of variable component in wages, and the possibility of achieving the objectives. Indeed, we have already seen that this variable could not be distributed for non achievement of objectives. This is an advantage for the employer,

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