The development of prototype bonus schemes follows naturally from a precise business requirement document.
It results in the establishment of pay out scales, which are the concrete translation of the company’s compensation policy.
Going beyond the classic calculation “engines” such as target bonuses, commission and ranking systems, Primeum offers exclusive procedures for the calculation of bonuses enabling clients to get highly specific incentive schemes.
Motivate employees to achieve two interlinked requirements
The Primeum “Surface” enables companies to create bonuses for two criteria which are inextricably linked to one another, without overpaying the beneficiaries when their performances are unbalanced between those two criteria.
It can sometimes be necessary to generate an incentive to produce two performances which do not necessary follow on from one another; for example, optimizing margins and revenue at the same time. Classic calculations based on additive mathematical formulae can generate a number of undesirable effects, which the Surface enables us to avoid.
Giving your teams direction
Recognizing the contribution of various roles to overall performance is increasingly considered as essential, but this cannot be only measured using usual economic criteria.
More and more often, the main performance variable must be expressed via the quality of execution of an action plan.
The objective is clear, but requires a genuine ability to understand the difficulties in manipulating qualitative objectives within an incentive scheme.
The Primeum Performance Quality Process allows you to create an intrinsic link between two requirements: the need for quality and the need for economic performance.
Getting employees to commit achieving the right targets
Primeum Commitment enables you to make the achievement of an ambitious objective more profitable for the employee than over-performing on a minor objective.
A truly revolutionary concept in terms of target bonus systems, here we replace the traditional negotiation of objectives with the establishment of a robust plan of action.
This enables the beneficiary and his/her manager to commit to an ambitious realistic objective, leaving behind the undesired effects of traditional Sales vs Target system.
In cases where it is not possible to set individual objectives, incentivize each employee to make a greater contribution to achieve results, without the limitations of a ranking scheme.
Ranking schemes are often used in situations where strict budgetary oversight is being sought. However, they lead to disconnect the incentive budget and the company’s overall results, and above all do not account for the real differences between beneficiaries.
In practice, if the first of the ranking whose performance level is actually below the initial target, should they earn the same bonus they would have if the team’s overall performance had been better?
With its ability to assess individual contributions, the Primeum Contributor tool avoids the major problems associated with traditional rankings systems, by offering a simple way of expressing the relative contribution brought by each beneficiary to the overall group performance, while also ensuring the advantage of a full budget control.
Enhancing recognition of individual contributions via progress requirements
Adjusted commission introduces the principle that even with the same overall sales results, performance is considered better when it represents significant individual progress.
Therefore, the procedure creates an inextricable link between individual contributions to overall sales results and individual progress.
In this way, a weaker contributor who has made significant progress can receive a bonus equivalent to that of a major contributor whose performance stats are down.
This mechanism incentivises the “middle of the pack” within a team, encouraging them not to become complacent with their gains, but to pursue higher levels of progress in order to optimize their commission. At the same time, the top contributors are always motivated to stabilise their portfolio.
Our approach allows companies to adjust their commission structure based on performance progress levels, while also retaining full budget control
With the Incentive Manager Toolsuite (IMT), Primeum allows you to address your full range of needs in terms of design, calculation and communication of incentive schemes to your teams.
There is no point in running, you have to animate.
60% of commercial directors consider that their bonus schemes are insufficiently well-communicated. However, incentive compensation remains a powerful tool for aligning the action plans of recipients with the company’s strategy throughout the performance cycle.
How can you get your teams on board with pay schemes right from the beginning of the cycle?
What’s the best way to present the performance aspect during a sales cycle?
How do you centralise interactions with your team at the end of a cycle?
70% of companies calculate their incentive compensation using Excel®…
…and yet, none of these companies trust the same program to calculate their fixed salaries.
How can you avoid disappointing your teams?
How are calculation issues taken into account?
How can a complex process be made reliable?
How can we determine individual objectives precisely and fairly?
How you can industrialize the calculation of objectives?
How you can give your management team responsibility to define and validate objectives?
How can we account for motivational incentives when constructing pay scales?
Payout curves adapted to your motivational methods, regardless of the calculation mechanism being employed:
How to manage the impact of your incentive schemes?
How can we draw benefits from pay scale optimisation?
Our service levels on implementing incentive compensation easily and quickly adapt to your needs. From the internalization of our tools operated by your teams to a complete outsourcing of your processes, we offer a service level continuum.
Fully-independent services, from configuration through to implementation of incentive schemes
Operations occasionally delegated to Primeum, while calculation operations remain internal