bonus plan considerations desired outcomes 1)outstanding results for client & ssa 2)ssa employee...
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Bonus Plan ConsiderationsDesired Outcomes1) Outstanding results for Client & SSA2) SSA employee satisfaction & retention3) Motivated, focused, driven employees, pulling for
and supporting each other4) A simple, clear, fair bonus plan – communicated &
understood
Undesired Outcomes1) Poor results2) Unsatisfied employees, high turnover3) Confusion4) Employees focusing on the wrong factors (wrong
behavior)
Undesired Outcome
Example
1) Poor Results Missing targets – e.g. <$250K/4Mos.
2) Dissatisfied employees
Employee leaves because of dissatisfaction in bonus plan – either didn’t understand, or was inadequate
3) Confusion Plan too complicated, or not communicated
4) Wrong focus Not paying attention to deliverables, or focused on cost instead of revenue
Desired Outcome
Example
1) Outstanding Results
Short-term projects driving early revenue, or average project value >$00K in 4 Mos..
2) Satisfied employees
Employee sat. scores increase, retention not an issue
3) Driven employees
Employees drive towards results every day, work hard, understand how to achieve breakthrough results
4) Clear, fair plan Everyone understands how the plan works and how they can impact their own and the company’s incentive compensation. No one team or employee is provided an unfair advantage or disadvantage.
EC decides distribution?EC partial control?EC recommends to Leadership?
Approach
Individual Team SSAGoal 100 700 3000Performance 130 910 5000
Improvement 30 210 2000
10 %
Individual Employee
15 %? %
? %
Deployment Team
SSA Employees
25 %
Quarterly/Annual?
Purpose: To encourage individual performance
Purpose: To encourage individual performance
Purpose: To provide some safety-net when factors prevent an individual from exceeding targets.
Purpose: To provide some safety-net when factors prevent an individual from exceeding targets.
Purpose: To encourage all SSA employees to support each other and drive results.
Also to provide some incentive to start-up deployment teams … so they are not punished during start-up period..
Purpose: To encourage all SSA employees to support each other and drive results.
Also to provide some incentive to start-up deployment teams … so they are not punished during start-up period..
Goal S/B cumulative throughout year so you don’t encourage quarterly fluctuations.
Need to adjust as appropriate: e.g. goal is so high employee can not achieve Q1, falls further behind Q2, gives up Q3.
Goal S/B cumulative throughout year so you don’t encourage quarterly fluctuations.
Need to adjust as appropriate: e.g. goal is so high employee can not achieve Q1, falls further behind Q2, gives up Q3.
Challenges
• Keeping any plan fair & balanced – so all employees are motivated, driven & compensated for results
• Contractors• KT vs BVS deployments• Start-up deployments – do not have the opportunity that mature deployments do• Moving staff from one assignment to another will have a profound impact on their
bonus potential• Need to equally accommodate non-deployment personnel
To think about for our next discussion:
Approach