Primeum bonus calculation processes
Primeum has developed a series of engineered solutions to meet your variable pay needs and ensure that your scheme delivers the exact motivations you require. In addition to classical devices, such as actual versus target schemes, commission and ranking systems, Primeum offers a number of proprietary and innovative calculation processes that overcome typical shortcomings of classical devices.
Depending on your requirements, we will offer you:
The Primeum Commitment Process >>Request a product fact-file
Primeum’s Commitment Process incentivises beneficiaries to accept the challenge of more ambitious targets, rather than trying to exceed lower or perhaps even under-estimated targets by as much as possible as happens with traditional target-based systems. Rewarding the precise achievement of ambitious but realistic targets, the Commitment Process aligns the interests of company and individual and provides a solid platform for maximising results.
This is quite a revolution in target-based bonus schemes. It replaces the often sterile traditional target or budget negotiation process with the constructive development of solid action plans to deliver the required results. Crucially, it also removes any incentive for participants to indulge in counter-productive practices that are often observed in traditional target-based schemes.
The Primeum “Napper” >>Request a product fact-file
Primeum’s Napper allows you to inextricably link two performance measures without overpaying beneficiaries when they succeed on only one of the measures. Any bonus payable is calculated on results obtained against both performance measures (e.g. margin and turnover), and the tool allows you to define the weightings of the performance measures. Traditional linking methodologies, based on simple mathematical formulae, can generate many counter-productive outcomes and result in participant focus on one or other of the measures. Primeum’s Napper enables you to link two performance measures with total precision so you can generate the exact behaviours you require.
Primeum’s Performance Ranking Mechanism >>Request a product fact-file
Primeum’s Performance Ranking mechanism evaluates the contribution of each individual and overcomes the disadvantages of traditional ranking systems. In essence, it offers a simple way of calculating the relative contribution of each beneficiary to overall performance.
Ranking processes are often used when strict budgetary control is sought. However, there is a disconnect between bonus payout and the aggregate or national result as the same bonus envelope is disbursed whatever the level of overall performance; and bonuses paid do not reflect the real differences in beneficiaries’ results. Should someone who is ranked first when the national or overall target is not achieved receive the same level of bonus when the national target is exceeded? Should the number of winners (i.e. those who receive a bonus) remain constant irrespective of the national performance? Is it better to be ranked third with a result only 3% less than the top performer, or ranked second with a performance 20% lower than the top performer?
Primeum’s Quality Process Execution >>Request a product fact-file
For many Businesses, the contribution to performance, developing purely around commercials functions, is increasingly regarded as essential, but cannot be measured only by usual economic criteria. Actually, the main variable performance of these businesses lies in the quality of implementation of action plan. Indeed, their task is not only to contribute to today’s business achievement but also create successful conditions for the future.
Prioritizing implementation quality of action plans by the requirement of economic performance: the challenge is clear, but it needs a real ability to manage inherent difficulties in handling qualitative targets within a variable pay scheme.
Primeum implementing Quality process allows you to combine these two requirements inseparably: a real need for quality and an economic performance requirement.