Design a variable pay program for Leadership team in driving business ambitions
A leading Retail group was struggling with linking business priorities, individual and team performance with variable pay with a clear structure and payout plan for their Senior Leadership team.
Competencies
- Business Strategy
- Functional / Category priorities
- Reporting and Progression KPI design
- Compensation Strategy and metrics
- Data and Insight Metrics
(Why & What ?)
- Leaders’ goal prioritization across functions and businesses not aligned
- Business priorities not directly linked to Bonus payouts
- Ad Hoc payments with no explanations with poor acceptability
- Leaders not able to see variable pay as part of Compensation package due to unstructured payouts
- Need for visible ROI on the cost incurred by the organisation
- Need for motivating Leaders with the variable pay model
(How ?)
- Discussion with leadership team
- Understanding goal priorities of each function/ Business and alignment with overall Group Priorities in the ‘New Reality
- Benchmarking with similar/ peer organisations
- Define components, weightage & payout scale for each function/ Business based on Business need.
- Establish team and individual components & define data source for achievement in alignment with Finance
- Discussions/ Suggestions with leadership team & presentation of proposals and alignment
- Support in implementation and hand holding for one review cycle