I talked once with the technical director of one of the largest banks in Russia. At some point, we are talking about employee bonuses. Then I say to him that in our company there is a reward of employees for projects made on time and tasks. Then he hung for five seconds, a long silence, bewilderment in his eyes:
- Hmm ... So for the same programmers pay a salary! - he says.
- Yes, they pay. But if you study the statistics of successful projects in IT, it becomes sad and you want to pay a premium for the tasks performed on time.
We said goodbye, without having come to a common opinion on this issue. In this article, I propose to figure out whether to pay a premium to programmers for the tasks and projects completed on time. And in general, when it is worth paying premiums.
So, Tom Demarco and Timothy Lister in their famous book “The human factor: successful projects and teams” indicated:
Since 1977, we have annually conducted research on development projects and analysis of their results. ... About 15% of all projects ended in nothing - were canceled, interrupted, postponed, or the result was the useless products. In the case of large projects, the picture is even worse - the collapse has comprehended 25% of the projects.
You can say, “Ok, but that was when it was! Now everything has changed! ”
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According to the
research of The Standish Group, only a third of IT projects in recent years has ended successfully. Statistics on the success of IT projects is given in the table below:
Successful projects - the project was made within the framework of the triple limitation, i.e. All project objectives are achieved in the planned time and budget.
Failure projects are projects stopped without obtaining a result, that is, in essence, money is wasted.
Controversial projects - those projects that were completed either out of time, or cost more than planned, or achieved only part of the goals.“Ok,” you say, “but these are big projects, not tasks that a single developer does.”
I suggest you split one large project into many small subprojects that can be performed by one developer or a small team — so it will be easier to manage risks and evaluate the result. One any significant task of a developer is a small project with its own limitations on time and budget. The award to the development manager should also be paid based on the results of product development - he takes an active part in planning, decomposing, evaluating, controlling the implementation of tasks, managing risks, managing people, etc.
You still do not want to pay premiums to developers?
According to the estimates of the same The Standish Group, $ 120 billion was spent on the so-called “failed” projects. If you add more budget overruns in controversial projects, you will receive $ 200 billion in space.
GDP ).
Hope you have no more doubts.
Next, we consider the general recommendations for the payment of premiums.
Avoid premiums that are paid regularly , such as quarterly bonuses. Any frequency reduces the motivational effect of the award to zero. The reason for this is simple - the employee expects a bonus, it is not a surprise for him, he does not feel positive emotions when receiving it. Such an award is taken for granted and the money is planned out a month before it is received.
I even had a case when, after the departments were merged, a new employee came to me and asked:
- And the quarterly premium this month will be, as usual?
- What is the quarterly bonus?
- Well, which is paid at the end of the quarter.
“You already won an award for a project last month.”
- A quarterly?
In general, it was unexpected for an employee, but he soon got used to the new rules.
It is reasonable if the bonus is appointed by the immediate supervisor of the employee . After all, only he knows about the real achievements of the employee. It so happens that from above, they lower the award to the whole department, without taking into account who has achieved and what has been done separately. Then there are two options in front of the manager: either simply to issue a bonus without a motivational message, or look specifically for each employee, why they paid the bonus.
The award should be issued immediately , for example, the programmer developed a cool feature with high quality and on time - get an award at the end of the month. No need to wait for the end of the quarter, the promotion should take place, so that feedback can be clearly traced.
The leader must always declare and explain why so much, to whom and for what a bonus . In this case, there is a situation when an employee has made a feature and expects to receive a bonus for it. If the manager does not want to pay a bonus to the employee, because dissatisfied with the results, it should also be explicitly talked with the employee, to give constructive feedback.
Do you pay premiums in your company?