How does your company balance total compensation in % for the division between: fixed salary + annual variable (short-term incentive)? How do you know that your bonus or incentive payout is competitive within the market?
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Thank you Beth, really good information as well!
Fixed salary is 100% not commission based, then per grade in the company a target bonus % (short term and long term where appropriate) is predefined. The actual pay out is 100% linked to company /group financial results as well as to your individual performance so if the company financial results might not be good and you have a high individual performance rating, you will still be rewarded for your own efforts. Our Rewards team does annual benchmarking with WTW to see how we are positioned on annual base and target bonus.
thank you Ingrid, your benchmark had a great value for my studies for a new program. Appreciate your help.
we target % of variable (bonus/short term incentive) based upon pay grades and market data. So % variable varies by role/level/function but is regularly checked against the market.