How to Calculate PPR
PPR (Results Participation Program) is a form of variable remuneration that companies can offer their employees as a way of encouraging and recognizing the performance achieved. In this blog, we will explain how to calculate PPR and what are the elements that should be considered in this calculation.
What is PPR?
PPR is a program that aims to share the results achieved by the company with its employees. It can be based on individual, collective or even company performance indicators as a whole.
How to Calculate PPR?
To calculate the PPR, it is necessary to consider some elements, such as:
- established goals: goals that were set for the period in question should be taken into consideration. They can be individual or collective.
- Performance indicators: Company performance indicators should also be considered. They may include revenue, profit, productivity, among others.
- Weight of each indicator: It is important to define the weight of each indicator in the PPR calculation. Some indicators may be more important than others.
- Goals reach: You need to check whether the established goals have been achieved or not. If they have been surpassed, this can influence the value of PPR.
Based on these elements, it is possible to calculate the value of PPR. For this, it is necessary to multiply the amount of the employee’s base salary by the percentage established for the PPR. This percentage may vary according to the company and the performance achieved.
Example of PPR calculation:
Let’s assume that a company has set the following goals and performance indicators:
| Billing | 40% | R $ 1,000,000.00 | R $ 1,200,000.00 |
| Profit | 30% | R $ 200,000.00 | R $ 250,000.00 |
| Productivity | 30% | 100 units | 120 units |
In this example, the employee has a base salary of R $ 5,000.00 and the percentage established for PPR is 10%. To calculate the value of PPR, we must multiply the base salary by the established percentage:
ppr = $ 5,000 x 10% = $ 500.00
Therefore, the value of PPR for this employee would be $ 500.00.
It is important to note that the calculation of PPR may vary from company to company, and it is necessary to consider the particularities of each organization.
Conclusion
PPR is a form of variable remuneration that can be offered by companies as a way of encouraging and recognizing the performance achieved. To calculate the PPR, it is necessary to take into account the established goals, the performance indicators, the weight of each indicator and the reach of the goals. Based on these elements, it is possible to calculate the value of PPR and reward employees according to their performance.