Employee Incentive

Overview

Employee Incentive – Business Overview

Employee Incentive is a Dafater document used to manage and record additional earnings paid to employees as a reward for performance, achievement, or specific business outcomes. It supports fair compensation practices by ensuring incentive payments are documented, approved, and included correctly in payroll.

This document helps organizations motivate employees while maintaining transparency and control over incentive-related expenses.

What Employee Incentive Is Used For

Employee Incentive is used to: - Record performance-based rewards such as bonuses, commissions, or achievement incentives
- Link incentive payments to a specific employee and time period
- Ensure incentives are properly considered during payroll processing
- Maintain a clear audit trail for incentive payouts

It acts as the formal business record that explains who received an incentive, why they received it, and how much was awarded.

Prerequisites and Setup Requirements

Before using Employee Incentive, the following should be in place in Dafater:

Employees must be properly set up and active
Payroll periods and salary structures should be defined
Company policies for incentives (performance metrics, approval rules, eligibility) should be clearly established
Authorized managers or HR personnel should be identified to approve incentives

Clear incentive policies ensure consistent and fair use of this document.

Typical Workflow and Business Process Fit

Performance or Target Achievement
An employee meets defined performance goals, sales targets, or other incentive criteria.
Creation of Employee Incentive
HR or management creates an Employee Incentive record, specifying:
- The employee
- Incentive amount
- Applicable period or payroll cycle
Review and Approval
The incentive is reviewed to ensure it aligns with company policy and budget.
Payroll Processing
Once approved, the incentive is included in payroll so it is paid with the employee’s salary.
Record Keeping and Reporting
The document remains as a reference for audits, payroll reviews, and performance analysis.

Key Business Scenarios Where Employee Incentive Is Essential

Sales teams earning commissions based on monthly or quarterly results
Employees receiving performance bonuses after evaluations
Incentives for project completion, productivity, or cost-saving initiatives
Retention bonuses or special rewards for exceptional contributions

In all these cases, Employee Incentive ensures rewards are controlled, traceable, and consistently applied.

Important Considerations for Users

Ensure incentive amounts follow approved company policies
Avoid duplicate or overlapping incentives for the same period
Confirm incentives are recorded before payroll is finalized
Use clear descriptions to explain the reason for each incentive
Regularly review incentive data to manage payroll costs and employee motivation

Business Value Summary

Employee Incentive in Dafater supports employee motivation, payroll accuracy, and financial transparency. By formalizing incentive payments, it helps organizations reward performance responsibly while maintaining control over compensation expenses.

Basic Information

Module: Payroll
Document Type: Other

Fields

Field Name	Label	Type	Required	Options	Description
employee	Employee	Link	✓	Employee	Linked employee receiving the incentive
employee_name	Employee Name	Data		-	Employee full name for reference
amended_from	Amended From	Link		Employee Incentive	Original Dafater incentive record this entry amends
company	Company	Link	✓	Company	Company responsible for paying the incentive
department	Department	Link		Department	Department associated with the employee
salary_component	Salary Component	Link	✓	Salary Component	Salary component under which incentive is paid
currency	Currency	Link	✓	Currency	Currency used for incentive payment
payroll_date	Payroll Date	Date	✓	-	Payroll processing date for the incentive
incentive_amount	Incentive Amount	Currency	✓	currency	Approved incentive amount to be paid

Permissions

Role	Read	Write	Create	Delete	Submit	Cancel
HR User	✓	✓	✓
Employee	✓
HR Manager	✓	✓	✓	✓	✓	✓

DocType	Relationship	Module
Company	Links to	Setup
Currency	Links to	Geo
Department	Links to	Setup
Employee	Links to	Setup
Employee Incentive	Links to	Payroll
Salary Component	Links to	Payroll

Employee Incentive

Overview