Yatsenko V.V., Yakovleva M.V.Published in:
Russian Journal of Entrepreneurship
– Volume 18, Number 22 (November 2017)

JEL classification: J30, J31, J33, L86

Keywords: bonus payments, efficiency, infocommunication company, key performance indicators, objectivity


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Abstract:

This article is the author’s view on the determination of the variable portion of mid level manager salaries of an info-communication company. The paper justifies the usefulness of application of three types of targets for assessing the performance of mid level managers, such as key performance indicators, smart targets and standards. We’ve developed an improved methodology for calculating the actual amount of bonus payout for "sales manager" in info-communication company over the whole assessment period. The method allows the wage fund to remain the same in the target period and at the same time it will ensure transparency and objectivity of payments within the variable portion of the wages of mid-level managers. The results of the research can be used by experts to ensure effective staff management in infocommunications.

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