February 11th 2019
Member Query – Bonus Pool Calculations
In this member query, a member asks the following questions relating to the start point methodology for Bonus Pool Calculations. These questions are mainly relevant to organisations operating in financial services, however, the member welcomes responses from other organisations who adopt similar approaches to Organisation-Wide Bonus Systems. The questions are as follows:
1. Which methodology do you use to determine your firm-wide bonus pool start point?
2. If you use an on-target model approach to determine your bonus pool start point, which levers do you use to overlay factors such as individual performance, % population receiving award, % of maximum opportunity paid?
3. If you use a performance distribution curve, which type do you use? - Normal distribution, or tailored to business or entity?
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If you are not a member of the PARC network and are interested in membership please contact Richard Hargreaves, Commercial Director, on +44 (0) 20 3457 2630 or at richard@parcentre.co.uk.
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