The computational chain: evaluating the performance cycle as a whole
There are software tools able to automate the computational processes and animation of incentive compensation. The computational chain breaks down into 5 different steps.
1. Data Collection
During this first phase, the objective is to collect all the data coming from the various departments of the company: the commercial department, with particular figures related to the performances (sales, objectives …), the HR department with the data personal (position, absences …).
2. Data processing
After the data collection phase, the step of aggregation and consolidation of the data takes place. The goal of this treatment is triple: to carry out checks of coherence and completeness of the collected data then to carry out preliminary calculations (aggregation, consolidation …) and finally to format the data so that the customer does not have this responsibility.
3. Calculation of performances and bonuses
The dedicated tools make it possible to standardize the computational process regardless of the complexity of the incentive compensation mechanisms and the management rules to be applied. In addition, the development of web solutions has led to major advances in ergonomics and the appropriation of these solutions.
4. Reports
A dedicated software will be able to automate the production and sharing of detailed reports, whether for the department, HR (payroll files), the financial department (budget synthesis), beneficiaries of compensation plans (details of calculations and associated bonuses) ….
5. Animation and Communication
Regular animation of incentive compensation is central to the motivation of the beneficiaries to implement their action plan and therefore the effectiveness of the schemes.
This needs a web interface, now mobile or tablet, in order to communicate in real time on the progress of the performances and the impact on the expected bonuses.
