Design of new variable pay schemes:

The design of a new scheme involves working with a company to define its variable pay policy, confirming appropriate incentive measures and setting fair objectives. The specifications of a new variable pay system set the necessary foundations for the construction of a first prototype and it is at this stage that PBB's specialist know-how and creativity come into play. PBB proposes performance indicators and constraint criteria, which when combined can produce the exact motivations required by the client company from a wide range of incentive possibilities.

The amount and progression of individual incentive components is defined, and each incentive component is assigned a weight and specific arrangement within the overall incentive plan. This permits a definition of the company's global pay-performance correlation, in other words what it is prepared to pay at each different level of performance. PBB has designed an exclusive model that permits the simulation of outcomes at both an individual and collective level in terms of motivation generated, global cost, distribution of rewards amongst beneficiaries and bonus component emphasis. The prototype and its simulations are revised with the company in an iterative process until the definitive pay scheme is attained.

In an implementation phase, PBB assists in the process of familiarising participants with the new scheme and its specific features. Effective communication of the new scheme, including presentation of exclusive PBB tools enabling follow-up and simulation, is vital if a company is to secure the support of scheme participants in accepting the performance challenge.

Benefiting from PBB's expertise in designing variable pay schemes, a client company is assured of an effective platform for motivating participants to achieve the required performance results, in turn promoting the use of variable pay as a valuable management support tool.