Information Technology

Company :

National IT organisation. Privately held. Employs 500.

Mandate :

To assess the overall remuneration strategy with particular emphasis on the design and application of a short-term incentive plan.

Background :

The company had an issue with attracting and retaining suitably skilled and motivated employees. A substantive link between performance and reward did not exist. Although there had been bonus payments in the past it was on an ad-hoc and discretionary basis. The lack of a clearly defined policy caused inconsistencies in the remuneration practices.

The introduction of an incentive scheme was considered essential as part of a revised remuneration strategy.  It needed to be directly linked to company and individual performance in an easily understood and transparent manner.

Solution :

An incentive scheme that was self-funded through the generation of additional profits. The scheme is market competitive and varies by job level within the company. The potential payout of achieving company budget and stretch targets are communicated to staff. Participants understand individual performance will also impact the final result .