BRIDGEi2i Case Study - Optimized allocation of variable compensation

1,850 views
1,709 views

Published on

BRIDGEi2i helps shared services of a leading financial institution optimize cascading of annual merit increase budget based on performance. More about BRIDGEi2i at http://www.bridgei2i.com

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,850
On SlideShare
0
From Embeds
0
Number of Embeds
52
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

BRIDGEi2i Case Study - Optimized allocation of variable compensation

  1. 1. Customer Case Study BRIDGEi2i helps shared services of a leading financial institution optimize cascading of annual merit increase budget based on performance. Business Challenge A large global shared srevices organization, of a leading European bank, was operating in markets with high wage inflation and demand for talent. They were keen to explore ways of optimal allocation of annual merit increase and variable compensation pool, to align with a performance driven culture while retaining critical performers and still remain competitive in the market for talent. BRIDGEi2i Solution BRIDGEi2i held brainstorming sessions with management and compensation teams to structure the problem. The need was structured under two broad category of solution: Optimize Annual Merit Based Increment Budget  Baselined current levels of compensation relative to market benchmarks for each region and job role.  Build rule to ensure increase help reduce gap from Merit Increase Tool market, maintain competitive position and linked to Home Rules & FAQ performance Job Level Average New Median Optimised Optimised Difference from Market  Built an optimisation model to identify annual merit increase Increase Median (Optimized) Team Manager 8% ₹ 1,134,000 7.68% ₹ 1,130,604 -7.45% increase % for each segment considering the rules Assistant Vice President 8% ₹ 2,376,000 8.15% ₹ 2,379,238 17.54% Optimize! ₹ ₹ 701,092 and constraints Senior Analyst / Process Supervisor 8% 700,164 8.14% -6.09% Analyst 8% ₹ 399,600 7.94% ₹ 399,370 13.60%  Provided a technology application, to enable compensation planning teams run various scenarios Variable Compensation Allocation across Functions  Defined key performance indicators for assessing business performance  Built a scoring mechanism to determine releative business performance  Built a model to optimally allocate bonus pool, define bonus allocation rules based on business performance Business Impact Compensation & benefits team was able to quantitatively define guidelines for annual merit increase ensuring objectivity in allocation of annual increment pool, while meeting end busness objectives. Performance linked variable incentive allocation process, helped create a standardized and transparent mechanism, providing incentives for businesses to outperform each other. It also replaced a manual process which was long, rework prone and less transperant. About BRIDGEi2i BRIDGEi2i is an analytics solutions company partnering with businesses globally, helping them achieve accelerated outcome harnessing the power of data. BRIDGEi2i helps companies to BRIDGE the gap between INFORMATION, INSIGHT and IMPACT in their journey to institutionalize data driven decisions across the enterprise.For more details contact us: enquiries@bridgei2i.com Information Insight Impact© BRIDGEi2i Analytics Solutions

×