Once the fasting and long holidays are over, it is time for companies whose fiscal year runs from April to March to report their accounts and hold annual shareholder meetings based on those reports. Many companies seem to consider bonuses based on the results. It seems that Japanese companies often pay bonuses in Indonesia, but there is no legal obligation to pay them, so overall it is still not common.

[Salary increase evaluation and bonus evaluation]

Bonuses are accompanied by evaluations, but they tend to overlap with evaluations for salary increases. Basically, salary increases should be based on abilities and duties, and bonuses should be based on performance. However, employees who have improved their abilities usually have better performance, and when their performance improves, even if the achievement was due to other factors, they tend to be favorably evaluated and receive better evaluations when their pay increases. I often hear that employees are dissatisfied with the fact that the results are very similar even though the evaluation is done twice. Therefore, we recommend that these two evaluation systems be used in different ways. Of course, if your abilities have improved and your performance has been good, you will naturally receive good evaluations for both. On the other hand, it can help prevent the halo effect, a phenomenon in which the evaluation of other features is distorted by being influenced by features that are more noticeable. Please refer to the 29th issue, which introduces salary increase evaluation (https://keystone-indonesia.com/roumu_14042022_29/)。

[Goal management and performance evaluation]

Performance evaluation is set in conjunction with goal management. If bonuses are given once a year, set annual goals, and if bonuses are given twice a year, clearly set not only annual goals but also semi-annual achievement status. Performance evaluation is calculated based on how well the goals have been achieved. In order to lead to evaluation, we not only set the goals to be achieved and their level, but also the weight and difficulty of the amount of work required, the importance of the impact on the company's performance, the timing of achievement, etc., and the bonus amount is calculated by multiplying each evaluation. If you set goals in a way that covers all of your work as much as possible, and the total weight is 100, you can prevent variations in the number of goals and make it easier to maintain fairness with other employees. Even if all the goals are achieved, the total amount will not increase if the goals are all easy, and even if some goals are not achieved, the amount of bonus may not decrease significantly if the goals are very difficult and require a lot of work. It would also be possible to set up a calculation formula such as ``weight x level of achievement x level of difficulty x importance'' and multiply it by the monthly wage, or divide the final evaluation into A, B, C, D, and E based on that score. The most important thing here is to set goals so that you can objectively judge the degree of achievement. There is a guideline called SMART, and it is important to set goals that are Specific, Measurable, Achievable, Related to business goals, and Time-bound. In particular, it may be difficult to set standards that can be objectively measured depending on the job, so the key is to quantify them as much as possible so that anyone who looks at them can make the same judgment as to whether or not they have been achieved. Aim to provide bonuses that motivate employees.