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Bonus and Commission Scheme Design
Our approach to designing a bonus or commission scheme is about understanding the results you want to achieve and working back to the scheme design - starting with the end in mind.
The service we offer follows a well-established method that ensures nothing important is overlooked.
Paydata bonus and commission scheme design services
Our bonus and commission scheme design service includes:
- Reviewing and assessing your current approach;
- Identify possible scheme designs and help determine best fit;
- Developing the detailed scheme;
- Supporting the approval process, providing policy papers for remuneration committees; and
- Implementation assistance - developing and delivering a communication plan.
As our bonus and commission scheme design solutions are tailored to your business needs, you can be confident you will end up with a scheme which supports your business, whilst engaging your employees.
How Paydata’s bonus and commission scheme design works in practice
Our starting point is to really understand your business and what you want to see change as a result of introducing the bonus or commission scheme. For example, is it more sales, more profitable sales, development of longer term business relationships, improved employee loyalty and commitment, or something else? Who are the stakeholders, for example shareholders or employees, and what do they think? From this, we can judge the effectiveness of your current approach (if applicable) and undertake work to identify how the results you are looking for can be measured within the business.
The work we do in the first step provides the information needed to look at possible scheme designs. Working with you, we will review the options and identify an approach that gives the best fit to your objectives. At the same time, we will take care to ensure the proposed approach is manageable and easy to understand. In most projects this leads to a milestone, where outline approval can be sought for the planned approach.
Once you are happy with the proposed approach, we will help you develop the detailed scheme. This often includes working your finance team to build a model that highlights the impact of the scheme on your business results, and predicts the earnings of the scheme participants. This can be particularly important for schemes that require shareholder approval, or where a new scheme is replacing an existing arrangement. This often leads up to a second milestone, where approval is sought to commence to implementation. We can support this process by helping produce any papers you require to attend meetings of the decision makers, for example the Remuneration Committee, to explain the scheme in detail.
The final stage of the project is implementation. We can help you draw up the scheme rules and to develop and deliver a communication plan. Our services can include being part of the implementation process, for example taking part in meetings with employees or their representatives to explain how the scheme works in detail.
Paydata bonus and commission scheme design solutions
To find out more about bonus and commission scheme design solutions available from Paydata, please get in touch.