Financially rewarding employees for their participation in the idea program is a strategy used by some companies to recognize and engage their employees in a more robust way, as it requires a level of maturity and an innovation culture within the company that is achieved over time.
If your company has already reached this level of maturity, this article is for you, as we will show how to manage this type of recognition through AEVO.
In this article you will see:
- Ways to provide financial reward
- Quantitative reward
- Variable financial reward
- Payment management
- Permissions
- Reward
- Data export
Ways to provide financial reward
Today, through the platform, there are two financial recognition systems to reward employees for their ideas:
- Quantitative reward: calculated based on the Earning Trackings of the ideas, meaning the idea must be tracked in the Central de Ganhos.
- Variable financial reward: calculated based on the score achieved by the idea from the completion of the classification criteria.
| Important!:The variable financial reward defined in the campaign overrides the quantitative reward, making it impossible to use both systems at the same time. |
Quantitative reward
The quantitative reward system is fully related to the financial follow-up of the idea, meaning it is only possible to set up a financial reward for the author if the idea is sent for financial follow-up carried out within the Central de Ganhos.
See also: How to perform the financial follow-up of ideas?
To enable this system in your program, simply go to the Gear Menu 👉 Reward 👉 Settings tab.
In the configuration area, the Reward Value field is required to define the percentage of the gain achieved by the idea that will be paid to the authors, while the Reward Ceiling field is used to set a maximum limit for the payment in case the financial gain from the idea is very high.
In section 1) Payment Events, it is also possible to split the payment into "installments" when the following events occur:
- when the gain forecast from the financial follow-up is frozen;
- when the idea is implemented;
- when the Earning Trackings are finalized.
To illustrate, see the example of the system below:
As configured, the authors of the ideas receive 20% of the total gain achieved by their ideas, limited to R$ 1,000.00. In this scenario:
- the first installment of the payment (in this case, 10% of the total gain achieved by the idea) will be paid when the gain forecast from the financial follow-up is frozen,
- the second installment (30%) when the idea is implemented, and
- the third/final installment (the remaining 60% of the total gain) when the Earning Trackings of the idea are finalized.
Thus, at each of these events, the company makes a payment of a portion of the reward and can also define in how many days the payment will be made, which corresponds to the Latency (days) field.
Variable financial reward
The variable financial reward is considered individually in each campaign. To do this, go to the Gear Menu 👉 Campaigns 👉 select the campaign you want to configure 👉 go to the Classification tab 👉 and enable the option Custom financial reward in the campaign?. Once this is done, the configuration of the financial reward rules begins.
The "Generate the reward when:" field determines the trigger that will create the Pendency for payment to the responsible user indicated in the "Responsible for payments" field.
| Important!:If the "Responsible for payments" field is not filled in, the Pendency will be visible to Superusers and to the "Recognition responsible" defined in the general settings. If another user is defined as responsible for payments, the Superuser will still be able to view the pendencies; however, the responsibility will override the responsible user set in the general configuration. |
The fields "Reward Ceiling" and "Split the reward among the authors", as the names suggest, limit the maximum value of the payments and ensure that the reward amount will be equally divided among the authors of the idea, respectively. After configuring these fields, it is time to proceed to the creation of the reward rules by clicking on the "Create reward rule" option.
The creation of a reward rule consists of defining three parameters:
- When will the reward be given?
- Upon meeting which conditions?
- What is the reward amount?
Using the image below as an example, the system is configured to reward R$ 100.00 to each author when the score achieved by the idea through the completion of the classification criteria is greater than or equal to 100.
It is also possible to create reward ranges using combined conditions. As follows:
| Important!:There is no limitation on the number of conditionals, and the system does not notify if the entered conditions are contradictory or repeated. It is up to the user to check the logic of the created rules. |
There are other possibilities for using the classification criteria to reward the author(s) of the idea. We can use the average score of the criteria, the highest score in a criterion, and the lowest score in a criterion.
When used:
- For the average score of the criteria, the platform will consider all the criteria in which the idea was classified, generating an arithmetic average of the criteria to reach the reward range.
- For the highest score in a criterion, the platform identifies, among the criteria in which the idea was classified, the highest one to reach the reward range.
- For the lowest score in a criterion, the lowest one among the criteria in which the idea was classified will be identified to reach the reward range.
Similar to the quantitative reward, it is also possible to reward the authors based on the financial gains achieved by the idea. For this, the option "the idea’s gain" must be selected, and it only appears when the reward trigger is set for the implementation of the idea.
| Important!:The value of the idea’s gain can be negative. |
Under these conditions, it is also possible to reward the authors with a portion of the gain achieved by the idea. For this, the option "% Reward relative to the gain" must be selected.
The relative value is indicated by percentage (from 1 to 100%), and it is possible to set a minimum reward amount.
After being added, the rule is listed in a table format, showing the full description of the conditions, the calculation used for the reward, and the options for editing, deleting, and sorting.
The rules are ordered according to their application priority. Thus, whenever an idea fits into more than one rule, the one listed first will be considered. Example:
- Ideas with a score above 100 = R$ 1,000.00
- Ideas with the criterion 'Impact on quality' set as 'High' = R$ 500.00
An idea with a score of 200 and high impact on quality would receive R$ 1,000.00.
In campaigns where the reward rules involve the value of the gain, the prize calculation and the creation of the Pendency for payment should only occur when the Earning Trackings of the idea are finalized and the idea status is set as implemented.
Payment management
Once the Pendencies for payment are generated through the use of the quantitative reward and/or the variable financial reward, the payment management is carried out by the responsible user indicated in the general configuration of the platform. To set this definition, simply go to the Gear Menu 👉 General Configuration 👉 item 5) Financial Gains 👉 field Recognition responsible.
A Pendency is generated for the recognition responsible, which can be accessed in the Bars Menu 👉 Manage Payments. In this area, all pending payments (scheduled and future) and completed payments will be listed.
To mark a payment as completed, simply click on the Pencil icon, enter the requested information, and click on the "Confirm Payment" option.
User permissions
- Who configures: users with permission to create/edit campaigns;
- Who classifies: stage evaluators with classification criteria;
- Who rewards: the recognition responsible in the system, Superusers, and payment responsibles defined in specific campaigns;
- Who views: the reward amount is only visible to the recognition responsible, Superusers, and the payment responsibles for that campaign. The answered criteria are visible to all users who can view the idea.
Reward
The reward defined in the campaign will override the quantitative reward, following the same logic as points and coins.
Data export
Currently, the platform does not automatically generate any report on users' financial payments. However, it is possible to request such a report by opening a ticket in Zendesk.