Remuneration Automation for Complex Incentive Schemes

The Challenge

A multi-national insurance company operated a very complex incentive scheme with bonuses calculated on various financial metrics across units and the larger group, along with non-financial metrics. The human resources team found it difficult to calculate bonuses due to the complexity and having to manually calculate it employee by employee.

Our Solution

Our team built a dynamic model where group targets, unit targets, employee details and other non-financial targets could be entered. The model simplifies inputs so any specific set of data only needs to be entered once, minimising the risk of incorrect data. It automatically assesses whether each employee meets minimum criteria for a bonus and calculates the bonus per employee. The model summarises information per employee, per unit and for the group, and allows management to amend schemes and predict the results of changes on final bonus amounts, all through a user-friendly interface with filters, graphs and tables.

The Results

The HR team witnessed a significant reduction in human error owing to automated, consistent calculations. Increased productivity as the team no longer needed to manually calculate bonuses for numerous employees individually, freeing them up for more HR-oriented tasks. When employees or management questioned bonus amounts, the model could be filtered instantly, showing targets, actuals, and the contribution of each scheme component — making complex bonuses quick and easy to explain.

This freed up HR specialists for their core tasks and increased employee morale as errors could no longer affect their rightful bonus amounts.